Balanced budget today, challenges tomorrow

Through careful planning, efficient staffing, and prudent financial management, Bethel has successfully delivered a balanced budget for the upcoming school year. The budget reflects our commitment to delivering a high-quality education for every student while being careful stewards of local tax dollars. However, as district leaders look toward the future, significant state-level funding gaps threaten to pull resources away from our classrooms. As one of the biggest employers in Pierce County, the majority of our budget goes to paying the staff who work with students every day. While official budget categories report that 78.3% of expenditures go directly toward salaries and benefits, Superintendent Brian Lowney pointed out that the real investment is even higher. "In Purchased Services, we’re also paying for people," Lowney said. Purchased Services is a budget category that pays for contracted specialized services for students. "I would tell you that it’s usually closer to 85% of our budget that is going to pay people to do the work of educating our students and taking care of them." The district has worked hard to streamline administration, keeping district-level operational support to just 4.3% of the total budget. And nearly half of that small percentage is consumed by mandatory fixed expenses, like insurance. Despite our careful local management, public schools across Washington are facing systemic funding shortfalls from the state government. One of the largest pressures on our budget is the state’s underfunding of Materials, Supplies, and Operating Costs (MSOC). These are the basic essentials required to keep school buildings open and safe. The state’s current funding formula leaves us with a $21.5 million annual gap between what the state provides and what it actually costs to operate our schools. To keep our facilities running, local levy dollars are used to cover the difference. Compounding this issue are recent legislative changes to Local Effort Assistance (LEA), a state program designed to help property-poor districts like Bethel. Recent adjustments to state funding formulas have triggered a steep decline in LEA to the tune of $10 million in future years. "Even though we're anticipating that change in revenue, we did find savings through the budget, resulting in a balanced budget this year," Chief Financial Officer Christine Donnelly said. That’s this year. Next year will be different. "I cannot sit here and say that we can have a balanced budget when we're going to be down $10 million based on the current legislative numbers." she said. Closing these multi-million-dollar gaps requires legislative action in Olympia. You can find out who represents you and contact them at https://app.leg.wa.gov/districtfinder