Latest News and Updates
BSD paused its plan to consolidate a middle school and will reevaluate enrollment and consolidation in October 2025. Read the Dr. Aramaki's message here. You can watch the presentation here.
What's next? Consolidation is not happening BUT our district is still facing a $10M budget gap in 2024-25. We have to unite and advocate for fully funded public education. Highland PTSA has launched a new page to help parents and community members understand the challenges ahead and what we can do to help our district and our educators.
Upcoming Meetings Thu.
Where? 12241 Main St Bellevue, WA 98005
Register here to speak or send your comments by email with "Public Comment" in the subject line.
December 14
2024-25 school year budget shortfall is expected to be about $9.8 million. If enrollment trends continue and costs continue to rise, the budget shortfall to be an additional $30 million over the following two years. Consolidating a middle school would help with approximately $4 million/year of that shortfall. However, the projected decline in enrollment has not yet fully impacted middle schools as it has elementary schools. Our middle schools are currently large enough to operate effectively and efficiently. Waiting will give us time to see if innovative programming, a potential post-pandemic rebound, and more affordable housing will reverse or minimize the projected enrollment decline.
Frequently Asked Questions about School Funding
What is the most important thing families should understand about school funding?
Education funding in WA State is a hard cap. There is no more revenue for a district to go and ask for. So when a district’s costs are outpacing its revenue they don’t have another option. The bottom line is we need more money in education.
Why is this happening? Isn't Bellevue considered a wealthy district?
Student enrollment is down and projected to continue declining until 2030. Since the district is funded by the State of Washington on a per-pupil basis, any decline in enrollment means an immediate loss of funds the district has available. Along with the two demographer reports, the district is providing historical enrollment trends, school capacity utilization, future enrollment, and the impact of declining enrollment on programs and services.
Has this happened before?
Yes. BSD’s history includes several school closures and consolidations, which also come with stories of their impact on people and communities. The last round of consolidation closed two elementary schools: Eastgate and Wilburton. Jing Mei, BSD's Mandarin immersion school has moved to Wilburton's building. BSD plans to move Big Picture to Eastgate's school building sometime in the future.
Read more on https://bsd405.org/2023/04/the-history-of-district-and-school-consolidations-in-the-bellevue-school-district/.
What is Bellevue School District's budget shortfall?
The budget shortfall was initially estimated in February 2023 at $31 million. However, after the legislative session and additional revenue calculations, the budget shortfall dropped to $24.2 million, or 6.3% of the 2022/2023 budgeted expenditures.
Additional Revenue Calculations
Increase in MSOC per pupil funding by $426,000 (Maintenance, Supplies, and Operating Costs)
Increase in special education multiplier by $2,100,000, however, the state still underfunds Special Education by $24 million for BSD.
Changes in student demographics resulting in additional funding of $3,250,000
Miscellaneous other income: $1,150,000
Read Bellevue School District's 2023-24 Budget Overview Presentation.
On December 14, at the school board meeting, BSD will talk about the shortfall for 2024-25.
What does our district offer that is not funded by the State?
Additional school staff (smaller class sizes at all levels)
7-period school day in middle and high schools (state only funds 6 periods).
This has an impact in high school because with 6 periods students only get 24 credits (the amount needed to graduate). If for some reason they struggle in one class, they will have to retake the class during the summer. Students would not be able to take 4 years of music AND world language in high school to meet all the graduation requirements.
Tutorial at middle schools and high schools
World languages in middle school
Additional school nurses (state only funds 4 nurses for the entire district)
School Psychologists
Counselors
school buses
Student programs not fully funded by the state including:
Special education
Advanced Learning
STEM programs, AP classes and testing
Opportunities for students not funded by the state including:
Orchestra, band, music, and art in elementary schools
Athletics (coaches)
After school activities (staff advisors)
The district consolidated two elementary schools. Didn't that fix the budget?
Unfortunately no. The fact that enrollment numbers continue to decrease and operational costs continue to rise (lunches, transportation, cost of living, inflation, ...) the district still needs to make additional cuts to balance the budget. So far the district hasn't presented a list of possible scenarios but consolidation of a middle school and cuts to some programs and activities are on the table. Looking back at previous budget presentations, families can expect cuts or reductions to programs not funded by the state: 7-period days in middle school, music/art education in elementary school, extracurricular and athletics activities, etc.
How are public schools funded in Washington State?
Districts receive funds from multiple sources:
State General Funding: Based on student enrollment and the state's model of assumed staffing needed to run a typical school.
Specific Categorical State Funding for specific activities and supports: transportation, special education services, and literacy supports. Usually, funding from the state is less than the actual cost for many districts.
Federal Government Funding for special education and support of students experiencing poverty.
Local Bonds and Levies: Need to be reapproved by voters every 4 years. The last levy was approved in 2022. More info: https://bsd405.org/about/school-levies/
For more information on K-12 education funding in WA State, read A Citizen's Guide to Washington State K-12 Finance.
Do all public schools receive state funding?
Yes, but some get more than others. An exception to the formula was allowed and some districts’ teacher salary schedules were “grandfathered” at a higher percentage of the adopted state salary schedule.
The Basic Education Act of 1977 set a formula for sending state funds to school districts. The basic formula gives each district a certain dollar amount for each full-time equivalent (FTE) student - each student attending school all day. For each student who needs extra services, such as special education programs, advanced learning, or bilingual education (MLL), there are state and federal formulas for supplemental support. Districts that employ teachers with advanced degrees get extra funds for salaries. Districts with fewer than 300 students also receive extra money.
What is the regionalization factor?
In Washington State, the regionalization factor is a percentage increase in state funding for school districts located in high-cost areas. This additional funding is intended to help districts attract and retain qualified teachers and staff by adjusting their salaries to be more competitive with the higher cost of living in those regions.
Here's how it works:
Each school district is assigned a regionalization factor based on the median home value in its community.
The factor can range from 0% to 18%, with higher factors going to districts in areas with higher costs of living.
The state then increases its basic education funding (basic package funded by the state's property tax) to the district by the percentage specified by the regionalization factor.
The regionalization factor for Bellevue is 1.18. This means that the state increases its basic education funding to Bellevue schools by 18%. This is the highest regionalization factor in the state.
Here are some key points to remember about the regionalization factor:
It was introduced by the Washington Legislature in 2017.
It is intended to help districts maintain competitive, market-rate salaries for teachers and staff.
It is based on the median home value in the community, not the actual cost of living for teachers and staff.
The regionalization factor is a controversial issue in Washington state. Some people believe that it is unfair to give more money to wealthy districts like Bellevue, while others believe that it is necessary to help these districts attract and retain qualified teachers and staff.
Here are some resources where you can find more information about the regionalization factor:
Washington Office of the Superintendent of Public Instruction (OSPI): https://fiscal.wa.gov/statebudgets/K12RegionalizationFactors
Cascadia Daily News: https://www.cascadiadaily.com/news/2023/may/26/regionalization-is-another-headache-in-school-funding/
GovDelivery: https://app.leg.wa.gov/rcw/default.aspx?cite=28A.150.412
Why is WA State funding considered inadequate?
There are several areas of education that the state does not fully fund as part of basic education. Examples include classroom support, special education services, the cost of substitute teachers, building maintenance, security staff including school resource officers, elective classes and Advanced Placement testing, as well as student activities and athletics.
Additionally, the state does not fund all the staff necessary to operate essential services and programs to students such as learning assistants (paraeducators), counselors, and school nurses. The state’s funding formula for K–12 education, called the Prototypical School Funding Model, sets student-to-staff ratios based on a study completed in 1977. The state provides funding that is calculated to be adequate for a certain number of teachers, principals, librarians, instructional aides, nurses and other staff based on student population. The Office of Superintendent of Public Instruction (OSPI), the agency that oversees K-12 public instruction in the state, then issues money to the districts based on what that minimum staffing would be.
Education is vastly different 50 years later, but the Prototypical School Funding Model has not been substantially updated to account for modern educational needs. The majority of districts are left to figure out how to pay for these services and programs on their own.
Didn't the McCleary decision require the state to fully fund education?
What's the McCleary decision?
Watch this video: https://www.youtube.com/watch?v=eg5RuRSKigE
After the McCleary decision (2017), state legislators changed property taxes with the intent of fully funding basic education and lowering local school taxes, not for the purpose of eliminating local school levies.
The state increased what it collects statewide in property taxes for basic education, and capped what school districts could collect locally at $2.50 per $1,000 of assessed property value. The McCleary decision also regionalized state revenue amounts. Those districts located in areas where the costs of living were higher received more revenue – up to 124% more of the base dollars. The decision also emphasized the importance of addressing disparities in educational opportunities among schools in different areas, so that all students across the state would have an equitable chance to succeed.
The reality is state funding still falls short. The initial increase after 2017 in state funding for public schools has not only stopped, but after 2020 it stalled and even shrank when you adjust for inflation. Yet districts have seen their costs rise, especially after the dislocations of the pandemic and record inflation.
What about the ESSER funds (COVID relief funds)?
The ARP ESSER fund, authorized by the federal American Rescue Plan Act (ARPA), provides funding to schools to support sustained safe building reopenings and operations while meeting the academic, social, emotional, and mental health needs of students resulting from the COVID-19 pandemic.
An OSPI chart shows that one-time federal funding from pandemic stimulus, as well as local levies, are making up the difference between state funding and actual costs. Now that the federal stimulus funding stopped, districts will face even larger cuts because they need to figure out how they'll pay for programs and staff funded with those funds.
We pay a lot of property taxes. Where did all the money go?
WA State collects taxes for the state, the county, cities, and taxing districts like schools. Then they distribute the revenue back to them. Taxes also fund voter-approved measures for veterans, seniors, fire protection, and parks. Even if a large part of our property taxes goes to funding education, those dollars do not come back to Bellevue School District.
What is the difference between bonds and levies?
In general, levies provide for learning, maintenance, and operations. Bonds are used to construct buildings, purchase property or modernize existing facilities. Specific use of funds in these designations is restricted by state law. State law prohibits monies approved for construction to be used for learning programs and staff. This means, even if Bellevue School District sells property, they wouldn't be allowed to use that money for to pay teacher salaries or other on-going costs of day-to-day operations.
Another way to think about the difference is levies are like paychecks. Paychecks come in at regular intervals and families must budget expenses on that schedule. School district levy “paychecks” arrive twice a year - in the spring and fall when property taxes are typically paid — for the levy's duration as approved by voters. Use of those dollars are budgeted as these levy funds become available.
Bonds are structured similarly to home mortgages. Schools borrow the money upfront and then repay it with interest over time. Typically, bonds are used for new construction or larger remodeling projects. BSD used bonds to rebuild all our amazing school schools.
Is there a limit to the amount of levy money a district can ask?
Yes. Districts may only collect a maximum percentage of their annual state (and some federal) revenue allocations. This maximum is known as the “Levy Lid.” This percentage is set by the state Legislature and the lid amount varies as some districts were grandfathered in at a higher percentage when the law went into effect. If the levy collected is greater than the amount prescribed by the lid, only the voter-approved amount may be collected. These lids aim to balance local funding efforts with state-level equity in education funding.
In 2019, maintenance and operations levies proposed by local school districts and approved by voters were replaced by enrichment levies. Since 2020, for districts with less than 40,000 full-time students, the levy cap for voter-approved enrichment levies is capped at the lesser of:
$2.50 per $1,000 of assessed value, or
$2,500 per full-time equivalent (FTE) student, adjusted by inflation for taxes due in 2021 and later. At the last levy election, BSD was capped at $2663 per FTE student.
A district with higher property values - like Bellevue or Lake Washington - will hit the revenue cap of $2,606 per student, while districts with lower property values will be “rate capped” before reaching the revenue cap. In contrast, districts subject to rate caps (where property value is lower) do not experience a reduction in local revenues when faced with declining enrollments. This is because as enrollment decreases, the tax rate and overall local tax revenues remain relatively stable while local tax revenues per student increase.
Can a district borrow money to cover deficits?
A district needs to operate on a balanced budget. To "borrow money", a district needs to accept "Binding Conditions" with the state. OSPI will step in and impose cuts and budget consolidation. For more information on School District Binding Conditions and Financial Oversight visit https://ospi.k12.wa.us/sites/default/files/2023-08/schooldistrictbindingconditionsandfinancialoversight.pdf
Can't BSD balance the budget with a new bond?
By state law, bond money must be used for school construction and improvement. Bond projects can address building’s systems, such as air conditioning, HVAC, and plumbing, or its physical structures, such as the windows, restrooms, kitchens, and gyms. All funding is used for constructing or maintaining buildings.
Legally, bond money cannot be used for operational expenses, salaries or anything else.
For more information about BSD Capital Bond visit https://bsd405.org/about/bond/ and answers to frequently asked questions at https://bsd405.org/about/bond/faq/.
Track the Progress of the District’s Capital Construction Projects
WA State K-12 Funding in the News
Seattle Public Schools
https://www.kuow.org/stories/seattle-schools-hits-pause-on-timeline-to-close-several-schools
https://mynorthwest.com/3939447/no-school-closures-recommended-2024-25-seattle-superintendent/
https://www.seattletimes.com/opinion/why-isnt-seattle-public-schools-fighting-for-our-kids/
Capital Gain Tax and other funding
https://washingtonstatestandard.com/briefs/consumer-spending-drives-another-200m-in-expected-state-revenue-growth/
https://mltnews.com/state-hauls-in-nearly-900m-from-first-year-of-capital-gains-tax/
Other School District Funding News
https://www.camaspostrecord.com/news/2023/dec/21/wsd-borrows-from-capital-fund-to-cover-costs/
https://www.theurbanist.org/2023/11/21/op-ed-seattle-poised-to-repeat-chicagos-school-closure-mistake/
https://crosscut.com/news/2022/11/breaking-down-was-school-funding-formula
OSPI news
Washington public school enrollment climbs by nearly 2,000 students - Lynnwood Times
▶️ Contact our Legislators to Advocate for Fully-funded Education
Our legislators prefer to hear from families and students. This has a bigger impact than just hearing from all school districts leaders across WA State. See how to find your legislators.
BSD Middle School Consolidation Study Timeline
November to December 2023
Synthesize community feedback
Share summary of feedback and considerations from community forums through additional community engagement
Equitable and targeted outreach to specific groups
Superintendent and team develop a draft recommendation
Sintetizar los comentarios de la comunidad
Comparta un resumen de comentarios y consideraciones de los foros de la comunidad a través de una participación comunitaria adicional.
Alcance equitativo y dirigido a grupos específicos
El superintendente y el equipo desarrollan una recomendación preliminar
January 2024
Share draft recommendation with the community through a School Board meeting, email, and on the district website.
Compartir la recomendación preliminar con la comunidad a través de una reunión de la Junta Escolar, correo electrónico y en el sitio web del distrito (www.bsd405.org).
February 2024
Conduct community forums and surveys to gather feedback on the recommendation
Equitable and targeted outreach to specific groups
Superintendent revises recommendations based on community feedback
Realizar foros comunitarios y encuestas para recopilar comentarios sobre la recomendación.
Alcance equitativo y dirigido a grupos específicos
El superintendente revisa las recomendaciones basadas en los comentarios de la comunidad
March 2024
Superintendent presents recommendation to the School Board for approval.
El superintendente presenta una recomendación a la Junta Escolar para su aprobación.