CAMANO: Budget Update – Answering Your Questions

Stanwood-Camano School District
Stanwood-Camano School District

In our first Budget Update, we detailed how school districts continue to grapple with financial challenges. In last week’s Budget Update, we took a look at how we prepare even though we don’t have all the funding data from the state yet.

This week, let’s answer some questions we’ve been receiving from the community, both directly and via our recent survey.

Here are three of the most common questions we receive about the budget process:

1 — Why is the school district even facing budget cuts? Didn’t voters approve a levy last year?

This is one of the most common questions we receive, and we understand the concern. It’s important to clarify that while voters did renew our EP&O levy, the school district’s budget challenges aren’t directly related to that approval. The root of the issue lies in the gap between the rising costs of running schools and the amount of funding provided by the state and federal governments. Despite being required to spend money on educating students, laws often don’t adjust funding levels to keep pace with inflation and other rising operational costs. This leads to deficits even with local funding like levies in place.

Moreover, although voters approved a specific dollar amount through the levy, the district cannot always collect the full amount. Local funding such as levies is capped and can be impacted by changes in the economy and property values, which doesn’t always cover the increasing needs of our schools.

For a closer look at how the district allocates its funding, we encourage you to review our Citizens Guide to the Budget., which outlines how dollars are spent to support students. 

2 — Why is staff being reduced?

The proposed budget reductions impact everyone. Because staff make up the majority of the budget, personnel reductions are needed to balance the budget. As detailed in last week’s budget message, each school building is actively trimming spending to limit possible reductions in staff. Retirements and other attrition will also reduce the impact on current employees. The proposal is to reduce spending from the budget among Certificated staff by approximately 2.2%, among Classified staff by approximately 2.2%, and among Administrators by approximately 9.3%. Non-salary costs are proposed to be reduced by approximately 3%.

3 — Can the district dip into its “savings”?

The district budgeted to use about $1.3 million from “savings” — referred to as the General Fund balance — to cover the budget gap for this current school year. That is estimated to leave the General Fund approaching the School Board-required minimum level — not enough to cover the entire projected budget deficit in the next school year. Maintaining a “savings” is important to ensure the district is able to meet its financial commitments each year as well as respond to sudden changes, emergencies, and/or new priorities while ensuring fiscal solvency. 

Bottom line: Reducing school budgets is not simple.

Schools must follow several key state laws and regulations. Some of the most common legal frameworks guiding school districts through financial adjustments include:

  • Basic Education Funding (RCW 28A.150) — District’s must provide “basic education” as defined by state law, even when making budget cuts. This means core programs such as K-12 instruction, special education, and transportation must be prioritized.
  • Collective Bargaining Agreements (RCW 41.59) — Personnel decisions must comply with existing union contracts and the Washington State Public Employment Relations Commission (PERC) rules.
  • Reduction in Force (RIF) Procedures (RCW 28A.405.210 & RCW 28A.405.220) — Districts must follow seniority-based dismissal rules and provide proper notification timelines (usually by May 15 for certificated staff).
  • Levy and Local Revenue Laws (RCW 84.52.053 & RCW 28A.505.240) — School districts must comply with voter-approved levy limits and ensure that budget cuts do not violate levy spending rules.
  • Special Education and Federal Compliance (RCW 28A.155 & Individuals with Disabilities Education Act) — Reductions cannot disproportionately impact students receiving special education services or violate federal funding requirements
  • School buildings, maintenance, furnishing, and insuring—School building security. RCW 28A.335.010 — School districts must adequately maintain, furnish, and insure facilities.

These laws, and many others, ensure that school districts maintain essential services while making difficult financial decisions in a legal and transparent manner.

Next week, the School Board will discuss next school year’s budget. The agenda will be available online starting Thursday afternoon.


On the Ballot in 2025

STANWOOD-CAMANO SCHOOL DISTRICT (NO. 401)
Directors. Two of the five director positions are scheduled to be on the ballot.
Position 1: Albert Schreiber. Candidates for Position 1 must live in director district 1; see the map at this link.
Position 2: Charlotte Murry. Candidates for Position 2 must live in director district 2; see the map at this link.

  • April 9, 2025