Superintendent: Funding, Bargaining, Levies

Dear ISD Families, Staff and Community,

Welcome back as we prepare for another school year. With staff returning to schools and district buildings, I want to share updates on federal and state funding, our district budget, contract negotiations, and renewal of local levies.

 

Federal and State Funding

Over the past year, the federal government signaled plans to reduce K-12 funding and eliminate the U.S. Department of Education. A proposal to cut about $6 billion was accelerated and then rescinded. The funds are now expected to be distributed for the 2025-26 school year. Beyond this year, the federal government’s decision to end funding poses challenges, as our district receives 2 to 3% of its funding from federal sources.

At the state level, lawmakers passed a budget that provides more funding for special education, materials, supplies and local levy capacity. The cost of education is still not fully funded by the state. As we look to the future, challenges also remain as inflation continues to increase costs for goods, services and insurance.

 

District Budget Summary

Our budget for 2025-26 school year focuses on aligning resources with strategic priorities while responding to enrollment changes and funding uncertainties. High schools are still working to manage overcrowding, while elementary enrollment is expected to dip slightly. We continue to monitor expenses carefully and use an equity-based budget process to direct more resources to classrooms and essential student programs. For more information, please review:

• 2025-26 Annual Budget Guide
• 2025-26 Budget Hearing Presentation
• 2025-26 Budget Draft
• August 7 Budget Hearing (YouTube)
   

Bargaining

We have worked with multiple bargaining units, most of which have reached agreements. Significant progress has been made with the Issaquah Education Association (IEA), which represents our certificated staff. Both ISD and IEA teams worked hard to reach a tentative three-year agreement before school starts, reflecting a shared commitment to students, families and staff. The next steps include membership review and ratification, School Board approval, and sharing more details in a joint statement with IEA once complete. This agreement is well-timed as we begin the year together.

 

February 2026 Levy Measures

The district has begun planning renewal levies for the February 2026 ballot, pending School Board approval. Local levies are distinctly different from bond measures; levies help bridge the gap between state funding and the actual cost of running a high-performing school system. The 2026 Levy Advisory Committee will meet next month to review and refine the recommendations. These levies support:

• Educational Programs and Operations – about 16.6% of the budget, funding teachers, nurses, special education and student programs
• Capital needs – including technology and critical building repairs
• Transportation – including school bus purchases

 

For more information, please visit Bonds and Levies.

 

Closing

Maintaining financial stability is not easy. While some neighboring districts face staff cuts, program reductions, school closures or state oversight, we have worked hard to use resources wisely and direct them where they matter most—supporting students and classrooms.

As we start this new school year, thank you for your continued partnership. Together, we can create schools where students feel supported and experience the joy of learning. We look forward to seeing students, staff and families on the first day of school, Aug. 28.

 

In partnership,

 

Heather Tow-Yick
Superintendent
Issaquah School District