New State Budget Provides Limited Relief
Budget Update: Where We Are and What’s Ahead
Highline’s financial outlook for the 2025-26 school year remains stable, thanks to steady student enrollment and past budget adjustments. However, key areas of underfunding from the state continue.
This month, Governor Bob Ferguson signed Washington’s new two-year state budget into law. While the budget includes some increased investments in areas like special education and operational costs, we continue to face substantial funding gaps from the state that impact our ability to fully support all students.
With limited relief from the state legislature, we anticipate additional budget reductions will need to take place in future years.
Special Education: Still Underfunded
Highline is currently underfunded by at least $14 million from the state in special education. The state’s new biennium budget provides an estimated additional $2.5 million, which is a step in the right direction—but still leaves a significant gap.
Previously, we filled that gap with local levy dollars. Now, a new state requirement prohibits the use of local levies to backfill special education shortfalls. Instead, we must use basic education funds to cover these costs—shifting the burden and creating new challenges in other areas of our budget.
Materials, Supplies & Operating Costs (MSOC): Falling Short of Inflation
We received an estimated $1 million in additional MSOC funding. While appreciated, this increase does not keep up with rising operational costs.
For example:
- Insurance premiums increased by 58% over five years.
- Utility costs rose by 57% over five years.
These necessary expenses continue to climb while state funding remains relatively flat.
Transportation: No New Funding
Despite ongoing advocacy, no new state funding was allocated for school transportation, which continues to be underfunded statewide.
Levy Lid Lifted
There is good news: Beginning in 2026, districts across Washington can collect more local levy funds. Highline voters approved a levy in 2021, but we haven’t been able to collect the full amount due to a state-imposed cap.
Now, that cap has been lifted. Starting in 2026, we’ll be able to collect the full amount approved by voters, bringing in an estimated $4 million in additional funding during calendar year 2026.
Budget Work Session & Public Hearing
The School Board must approve the budget each year. The public is invited to learn about the proposed 2025-26 district budget in June. At our budget work session, staff will present the budget to the Board. At the Public Hearing, community members will have the opportunity to comment on it. Everyone is encouraged to attend or watch online.
Budget Presentation – Work Session
Thursday, June 12
4:00 - 5:00 p.m.
Public Comment – Public Hearing
Wednesday, June 25
4:15 - 4:45 p.m.
All school board meetings are held at the Central Administration Building, 15675 Ambaum Boulevard SW in Burien. All regular board business meetings, work sessions and public hearings are public. Everyone is encouraged to attend or watch online.