District Faces Revenue Shortfall Despite Passage of Levy Measures

Each year the district’s budget planning process begins in the early spring, when the Legislature is still in session. This year, district administrators began the process with hope that the Legislature would increase funding in several key areas, including pandemic relief funding. Unfortunately, when the session ended, those changes were not incorporated to the extent that ISD officials had hoped and requested. 

Our district has received only about $6 million in ESSER (Elementary and Secondary School Emergency Relief Act) funds, compared to other districts in the state that received much more because the formula was based on the number of students in need. While the ISD has fewer students receiving free and reduced lunch than some school districts, our pandemic-related costs were also significant at about $17.4 million to date. 

Community members may recall that state education funding increased after the McCleary decision, but that a large portion of the new revenue was allocated to salaries and benefits. This means that the funds are less flexible than local levy dollars. The Legislature also decreased local levy authority by capping it at $2,500 per student or $2.50 per $1,000 of assessed property value – whichever is less and adjusted by CPI (Consumer Price Index) each year.  

In the budget for 2021-22, the district adopted a deficit budget of $15 million, with reductions in certificated staffing, administrators, counselors, professional learning coaches and more. 

Several of the biggest factors that have contributed to decreased revenue and increased costs include: 

• Enrollment, which peaked in 2019-2020 at 20,244 students, and is currently projected at 18,484 for the 2022-23 school year. The declining enrollment is primarily at the elementary level, where we have lost about 1,760 full-time equivalent (FTE) students over three years. This decline in enrollment equates to $26.3 million less in operating revenue (in 2022 dollars). 

• Labor costs, inflation, 5.5% IPD/cost of living increase, new building operating costs for Cougar Mountain Middle School and Cedar Trails Elementary School. 

The district would have faced a deficit of about $27.9 million if no action was taken. The School Board decided at its April 7 meeting to make reductions over two to three years, and asked administrators to recommend cuts for the 2022-23 school year. Superintendent Ron Thiele and Chief Financial Officer Jake Kuper presented a proposal on Thursday, April 28 including $11.4 million in program reductions and a reduction in force (RIF). The program reductions include: PBSES (Positive Behavioral Social Emotional Support) coaches, math and science staffing, high school deans of students, reductions to high school staffing models for activity coordinators and athletic directors, instructional coaches, Career and Technical Education (CTE) enhanced staffing, Teachers on Special Assignment (TOSAs) in a variety of disciplines, Elementary Education Director and more. The board approved the reductions with a 3-2 vote. 

The timing of the decision was tight because the district needed to know the outcome of the Special Election but also had to make decisions before the deadline in the Collective Bargaining Agreement with the Issaquah Education Association, which requires notifying any IEA members whose position will be affected by May 15.  

Had the levies failed, significant additional cuts would have been necessary. 

For additional details, please listen to the April 7 School Board meeting and the April 28 School Board meeting; or, read the 2022-23 Proposed Program/Service Reductions advance notice document and the accompanying April 28 presentation to the board.