Schools balance projected $50.8M budget while facing deficit

Published 3:30 am Wednesday, August 5, 2026

Sequim School District administrators are not proposing additional staffing cuts for the 2026-27 budget, but rather plan to cover a remaining $730,000 shortfall through operational reductions and other cost-saving measures.

The district faced a projected $2.5 million deficit earlier this year because of declining enrollment. School board directors approved about $1.7 million in staffing reductions in May, largely through attrition, leaving administrators to find other ways to close the remaining gap.

Although there is still a budget hole of $730,000, the district’s director of business and finance, Elijah Boyd, said there will be no additional reductions in staffing levels.

“We tried hard not to impact people’s jobs who still wanted to keep working,” he said.

Sequim School District’s proposed 2026-27 budget’s expenditures amount to approximately $50.8 million and its final approval is scheduled for 5:30 p.m. Monday, Aug. 17, in the district’s board room at 503 N. Sequim Ave.

Boyd said in an interview he went through the district’s nearly 30,000 line items to analyze options, and administrators have proposed making up the $730,000 shortfall through various operational reductions and/or changes.

They’ve reduced costs in custodial supplies following efforts to go with one vendor, and they’ve asked each school building to cut 6 percent to 8 percent of its building materials and services’ expenditures.

Boyd said information technology staff initiated and completed a capital lease buyout of computers that will reduce the expense by about $130,000. They’ve also canceled several technology and software subscriptions and reduced contracted services, he said.

Board directors in May largely expressed a desire not to use reserves. Boyd said reserves will not be used to fill the $730,000 gap.

He said the board has expressed a minimum amount of 4 percent to 6 percent in reserves on hand, and he projects by the end of August they’ll have about $4 million, or about 7.9 percent.

“Looking at birth rates, costs, and enrollment and increases in labor, it’s prudent to continue to be prepared,” Boyd said.

He said reserves will help in the future with previously negotiated salary increases with the district’s seven labor groups to provide cost of living increases in the 2027-28 and 2028-29 school years.

“(Those) require us to save money now, so we can pay these later,” Boyd said.

Personnel amount for about 82 percent to 83 percent of the district’s budget, he said.

Proposed budget

School board directors hosted a public hearing on the budget on July 20 with one resident speaking against staffing cuts, highlighting his opposition to two split first/second grade and fourth/fifth grade classrooms following the reduction of two full-time equivalent (FTE) positions.

Boyd said in an interview that despite efforts to reduce expenditures, the budget still increased by about $1.2 million from last school year due to escalating costs of insurance and goods.

Superintendent Regan Nickels said on July 20 the budget includes planned expenses, such as $144,000 for curriculum and $100,000 more for variables such as fuel increases.

Previously, she said the $2.5 million deficit was due to an anticipated decline in enrollment of about 48 students. The school year ended with just under 2,400 FTE students, and next year’s enrollment is budgeted at 2,489 across its schools.

She said Boyd’s enrollment estimate is more conservative than what they’ve done in the past and the numbers might be higher due to a higher than expected kindergarten enrollment number.

The proposed full-time equivalent (FTE) certificated staff is 156.6 with 161 individuals (headcount), 128 classified staff with 165 individuals, and 11.5 administrators with 12 people.

The 2025-26 school year had 310.75 FTEs while this school year is projected to have 296.1.

Victoria Balint, the schools’ director of Human Resources, confirmed via email that the district has not proposed reducing staff beyond the May 13 resolution.

A projected reduction in paraeducators by seven individuals was reduced by six following a resignation, she said.

The previously announced reduction in force included 0.6 administrator FTEs, 8.2 certificated staff and seven paraeducators.

Some of the changes include not filling certain vacancies, reducing one FTE at Dungeness Virtual School, having one literacy specialist for both Greywolf Elementary and Helen Haller Elementary, reducing band by one section at Sequim Middle School and stopping a Music Appreciation elective class.

For more information, visit sequimschools.org.

Note: Reporter Matthew Nash has family employed/enrolled in Sequim School District.