Dear Cle Elum-Roslyn School District Community,
We want to address the significant budget challenges facing our district—issues that school districts across Washington state are also experiencing. According to a recent Seattle Times article regarding Washington school budget challenges and analysis, 191 out of 295 school district budgets are operating in deficit. Transparency is our priority, and we want to share the factors contributing to this situation and the steps we are taking to ensure student success.
To address our declining general reserve (our district’s savings account), we are making reductions in spending, contract services, and "right-sizing" our staffing ratios. Recently, our board passed a resolution to adjust our budget for the remainder of the year to ensure a balanced budget.
Statewide Challenges Impacting School Budgets
Public schools in Washington have faced financial pressures for the past five years. Several key factors have contributed to the current budget shortfalls, including:
Expiration of Federal Pandemic Relief Funds – One-time COVID relief funding has ended, leaving budget gaps.
Competitive Wages – Over the past eight years, our district has increased wages to be competitive in the region.
Rising Costs & Inflation – The increasing costs of supplies, utilities, contracted services (vision, speech, mental health, OT/PT etc.), and employee benefits exceed state funding adjustments.
State Levy Limits – Restrictions on local levies prevent us from supplementing state funding at the same levels as some comparable districts.
Increased Special Education Costs – Mandated, yet often unfunded, special education services continue to strain the general budget.
State Investments in Schools – Since the McCleary Decision (a 2012 lawsuit in which the state was found to be underfunding public education), state investment in public schools has actually declined. While McCleary funding was implemented in 2018, it was a one-time adjustment, and today, education funding accounts for less than 50% of the state budget and continues to decline annually.
Limited Legislative Support – The state's current $15 billion budget shortfall has made significant increases in K-12 education funding unlikely this legislative session.
These combined factors have created a "funding cliff" that requires difficult decisions. Our general fund balance is currently at 4.0%, and without action, it will continue to decline, impacting our ability to cover essential employee and emergency costs. It is important to note that some district funds—such as those for buses or facility improvements—are designated for specific purposes and cannot be used to offset operational shortfalls. The majority of our budget, including salaries and benefits, comes from the general fund.
Our Commitment to Students
Despite these financial challenges, we remain committed to providing a high-quality education. We are confident in our ability to stabilize our general fund while upholding our core values. Our guiding principles for budget reductions include:
Prioritizing central office and leadership reductions first before impacting classrooms. See new Organizational Chart of duties.
Maintaining reasonable student-teacher ratios to support quality instruction.
Balancing the budget across all categories to prevent overspending in any single area.
Improving staffing efficiencies by aligning resources with enrollment needs and utilizing attrition (resignations and retirements) where possible. Moving to more efficient staffing between our 7-12 schools and programs.
Protecting programs that support student success, particularly those that benefit our most vulnerable students.
Focusing on student retention and attraction strategies, including expanding Career and Technical Education (CTE) programs, dual credit options, virtual learning opportunities, and services for homeschool families.
Strengthening partnerships with local businesses and organizations to support student learning through internships, apprenticeships, and financial support.
Seeking grants aligned with district goals, especially in technology, special education, and career readiness, to offset expenditures.
Planned Budget Adjustments
To build financial stability, we must reduce approximately $500,000 from our $18 million budget. Our goal is to achieve a minimum general fund reserve of 8%, with an ideal target of 12%. Planned reductions include:
Reducing central office leadership positions
Reducing director positions in technology and maintenance operations/custodial services.
Reducing two central office administrative assistant positions.
Reducing one district administrator position.
Limiting travel and out-of-district conferences where possible.
Cutting materials and operational costs where possible.
Postponing curriculum adoption for the 2024-25 school year.
Freezing discretionary spending districtwide.
Optimizing staffing efficiencies through retirements, resignations, reassignments, improved sharing of staff 7-12, and student schedule adjustments.
Scaling back non-essential paraprofessional roles not fully funded by the state.
Exploring revenue-generating opportunities through partnerships, co-ops, and grants.
Understanding School District Funding
To clarify how school district finances work, here’s a breakdown of the different types of funds we receive and how they impact budget decisions:
General Fund (Basic Education) – The primary operating fund covering staff salaries, benefits, instructional materials, and daily operations. Our declining reserve is directly tied to this fund.
Capital Projects Fund – Used exclusively for school construction, major renovations, and facility improvements (cannot be used for staffing or instructional costs).
Debt Service Fund – Used to pay off bonds for school construction and major projects (not for salaries or operational costs).
Transportation Vehicle Fund – Designated for purchasing and maintaining buses (not for employee salaries).
Associated Student Body (ASB) Fund – Managed by students for extracurricular activities and athletics.
Grants & Special Program Funds – Restricted to specific programs such as Title I, Special Education, or Career and Technical Education (CTE).
Why This Matters for Our Budget Challenges
We understand that staff and community members may wonder why they see new buses, computers, or facility improvements while we discuss budget reductions. The key reason is funding restrictions—many of the dollars we receive cannot be used for basic education expenses like teacher salaries, benefits, or general operational costs.
Since the majority of our budget comes from the general fund, reductions must be made in that category, as other funding sources cannot legally cover these gaps.
Moving Forward
We understand that these budget adjustments may raise concerns, and we are committed to maintaining open communication throughout this process. Our priority is to ensure financial stability while continuing to provide a strong educational experience for all students. We recognize that this is an anxious time for our staff, and we are working diligently to minimize impacts where possible.
We appreciate your support, engagement, and partnership as we navigate these financial challenges together. If you have any questions, please don’t hesitate to reach out at belcherj@cersd.org.
Thank you for your ongoing commitment to our schools and students.
All my best,
John Belcher
Superintendent
Cle Elum-Roslyn School District