Whether cuts are expected to be needed for the Kent School District in the 2025-2026 budget remains to be seen, but future budgets will require an estimated $7.5 million reduction each year for three consecutive years.
Raul Parungao, district executive director of finance, told the Kent School Board during its July 23 meeting that the May 2025 financial statement shows the district operating at a deficit of $12.3 million, higher than the anticipated deficit of $9.7 million.
“We are operating with more deficit than what we anticipated,” Parungao said. “Having said that, the year is not over yet, which is why we go through this monthly.”
Parungao said the numbers could get better over the next couple of months.
“We are not necessarily cutting,” he said. “The inflow of revenue and outflow of expenses is not even on a monthly basis. …one month we spend more and the next month we spend less.”
When the numbers are known for June, July and August, even the estimated deficit of $9.7 million could be less, Parungau said.
“So we are not adjusting 2025-2026 yet?” Board Director Donald Cook asked.
“Not yet,” Parungao said.
With an ending general fund balance of $60.1 million for 2024-2025, district staff remains confident in covering the deficit. In fact, the board approved the 2025-2026 budget June 25 with a deficit of $14.9 million. Parungao said if the ending fund balance becomes higher than $60.1 million, it would allow a delay in cuts.
Parungao emphasized, however, the district cannot continue on a path of using the fund balance as a way to cover deficits as eventually that money will run out.
That’s why staff has proposed a reduction of $7.5 million starting with the 2026-2027 budget and each of the next two years after that to keep the district from draining the fund balance.
Where the district might cut expenses has not yet been determined. But the $7.5 million reduction each year would be permanent and add up to savings of about $23 million.
Cook asked if it might make more sense to cut more sooner rather than later.
“We don’t want to cut $20 million next year,” Deputy Superintendent Wade Barringer said. “We’re looking at $7.5 million for the next three years to 2028-2029. …there will be an impact to our system of labor partners and contracts with 80% of our budget in people. We are obligated to those contracts, we can’t just go cut $15 million.”
Parungao said district staff will look for efficiencies and a potential increase in revenue with a new levy proposal after the current levy expires in December 2027.
“We’ll exhaust all options before expenditure reductions,” Parungao said.
The projected 2025-2026 budget shows revenues of $555.5 million and expenditures of $570.4 million, according to district financial documents.
The next budget update from district staff will show a smaller deficit after the U.S. Department of Education announced July 25 (after the district update to the board) that it will release funds the Trump administration initially had withheld to school districts across the nation. Kent applied for and had received approval for $11.8 million through safety net funding but that money was held up. The additional money will mitigate some of the increased costs, according to the district.
Barringer said the district has engaged with labor partners over the last three years and staff has made reductions each year to put Kent in a better position than several neighboring districts.
Parungao said the district’s expenditures are higher than revenues because it is not fully funded by the state and it’s paying more to employee contracts. The district is funded by the state based on student enrollment, which is projected to remain steady or even slightly increase from the current 25,592 students.
“We are $131 million underfunded by the state and that’s paid by the community levy and from the fund balance,” Parungao said.
The state is facing its own budget deficits.
“We don’t expect to see more money from the state with its deficit,” Barringer said. “There will be additional work sessions about the budget and we will have tough decisions. We’ve been strategic but that doesn’t mean it’s not going to sting in Kent.”
Board President Meghin Margel said additional budget work sessions will be planned once more solid budget numbers are known.
“We’ll be doubling the amount of budget discussions during the next year,” Margel said.
Cook said once discussions start on how to reduce the deficit by about $22 million over a three-year period, residents need to be part of the process.
“We need to include the community in decisions,” Cooke said. “It’s their kids and their money. I don’t see how we pass another bond or levy (without that involvement).”
Contracts
District contracts with employee groups could be one way staff looks to save money. Here’s a look at when contracts expire:
Kent Association of Educational Office Professionals, Aug. 31, 2025
Kent Association of Paraeducators, Aug. 31, 2025
Kent School Food Service Association, Aug. 31, 2026
Kent Education Association (KEA, teachers), Aug. 31, 2027
Teamsters Local Union 763 (bus drivers), Aug. 31, 2027
Kent Principals Association, June 30, 2028
Kent Association of Coaches and Extracurricular Employees, Aug. 31, 2028
American Federation of State, County and Municipal Employees, Aug. 31, 2028
American Federation of Teachers Union of Washington Maintenance and Custodial Staff, Aug. 31, 2028
Editor’s note: This story was updated about federal funds coming to the district.
Talk to us
Please share your story tips by emailing editor@kentreporter.com.
To share your opinion for publication, submit a letter through our website https://www.kentreporter.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 300 words or less.
