CAMANO: Budget Update – Where are we now?
The Stanwood-Camano School District posted this item in the news section of their website on Mar. 28, 2025.
As we detailed in some of our budget messages in January and in February, school districts across the state — including ours — continue to grapple with financial challenges caused by state funding limitations, inflation, and the phase-out of some federal funds.
While we are grateful for the funding we receive, the reality is that it has not kept pace with rising expenses for salaries, materials, transportation, and other essential services.
Over the next few weeks, we will send regular budget update messages with details to help you stay informed.
The growing gap
To help bridge funding gaps, the district has taken steps to reduce costs. Two years ago, we cut approximately $6.5 million in spending and used $1.5 million from our General Fund savings to balance the budget.
Last year, we trimmed about $2.2 million and again used money from our General Fund savings to balance the budget.
As a result, our fund balance is projected to be closer to the board’s minimum threshold of 5% of unassigned revenues.
How funding works
We deeply appreciate our community for supporting the replacement Educational Programs & Operations Levy in February 2024. It’s important to recall how this local funding works: Unlike other property taxes, which typically rise with assessed home values, school levy collections are capped at voter-approved amounts for each of the four years and cannot exceed those limits.
In fact, the actual amount collected may be lower than what voters approved due to the state-imposed “levy lid,” which restricts collections based on state calculations. This means that while property tax bills may increase, local levy funding for schools does not necessarily grow at the same rate, often falling behind rising costs.
This is different from property tax assessments for other services that can increase annually to help cover inflation. The bulk of the district’s funding is allocated by the state Legislature, which is still in session. At this time, we don’t know if we will receive more, less, or the same as last year.
Washington’s Constitution makes it clear in Article IX, Section 1 that “it is the paramount duty of the state to make ample provision for the education of all children.” Yet, districts across the state continue to advocate for stable and adequate funding to fulfill that promise. We are working alongside other districts and education organizations to seek legislative solutions that ensure reliable funding for our schools.
In next week’s budget message, we will take a deeper look at our budget planning process, how we compare to other school districts in the state, and what steps we’re taking to help minimize future reductions.
