Kent School District faces budget cuts of $8 million

Kent School District leaders will need to cut about $8 million from the 2025-2026 budget due to a declining enrollment, which means less money from the state, and the loss of federal funds.

Superintendent Israel Vela shared the latest budget numbers in an Oct. 17 email to district families after an Oct. 15 retreat with staff and Kent School Board members.

“Our 2025–26 budget was developed with the assumption that enrollment and federal funding would remain stable,” Vela said in the email. “Unfortunately, neither of these assumptions held true.”

When the board adopted the budget in June, district staff projected enrollment to remain flat at 24,222 students, actually an increase of about 320 students from the 2024-2025 school year, according to district documents. The Oct. 1 count shows an enrollment of 23,430 students, a decrease of 792 students.

Vela said the projected funding gap for the 2025–26 school year has grown to $35.3 million from $14.9 million, an increase of $20.4 million.

“It is important to note that these figures represent our current understanding and may change,” Vela said.

The superintendent listed the reasons for the $20.4 million shortfall:

• $8.2 million: Decline in K–12 enrollment of 792 students

• $6.2 million: Decline in Inclusive Education enrollment of 413 students

• $6.0 million: Reductions in federal funding (Title I, II, and III programs)

Inclusive Education covers more than 3,500 children and young adults who receive special education services, according to the district’s website. Once a child or young adult is identified as eligible for special education services, the school district provides a free and appropriate public education emphasizing special education and related services designed to meet the student’s unique needs.

Title I federal funds are allocated to school districts according to poverty data from the U.S. Census Bureau, according to the district. The program provides supplemental support to students performing below grade level designed to give all students with significant opportunity to receive a fair, equitable and high-quality education. Nearly two dozen Kent schools qualify for the funds.

Title II federal funds can be used to provide supplemental activities that strengthen the quality and effectiveness of teachers, principals, and other school leaders, according to the state Office of Superintendent of Public Instruction (OSPI).

Title III funds are designed to support the district language instructional education program to assist multilingual learners in attaining English proficiency, according to OSPI.

Vela said during the development of the 2025-26 budget, it was noted that enrollment projections were prepared prior to the election, and recent changes in immigration policy, as well as uncertainties surrounding federal funding, may influence future enrollment figures.

Addressing the funding gap

In an effort to minimize the impact to 2025-26, $12.4 million of the shortfall will be covered by the district’s unassigned fund balance, Vela said. The current fund balance is about $60 million.

Raul Parungao, district executive director of finance, told the board in July it could use fund balance to cover deficits but warned them 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.

Even with using part of the fund balance Vela said approximately $8 million in budget cuts will be necessary this school year.

Specific cuts remain to be determined, but all current vacancies are being carefully reviewed before hiring and that hiring will proceed only where necessary and aligned with collective bargaining agreements, Vela said.

Future funding shortfalls

District staff anticipates a similar funding gap in 2026-2027, including a previously reported shortfall of $7.5 million for each year from 2026 to 2029, a total of $22.5 million.

Staff also projects continued K-12 enrollment decline for a deficit of $8.2 million; continued Inclusive Education enrollment decline for a loss of $6.2 million and ongoing federal funding deductions of $6 million.

Vela said it will take budget reductions of about $30 million to cover the funding gap in 2026-2027.

“We will be looking at all areas of the school district for efficiencies, revenue enhancements and expenditure reductions,” Vela said.

Vela said other districts in the state and nation are going through similar financial challenges because of inflation and cost-of-living increases; declining birth rates leading to lower enrollment; and a reduction in the state’s share of funding K-12 from over 50% in 2019-2021 to 43.2% in the 2025-2027 state budget.

“We are committed to minimizing the impact on students and families,” Vela said. “While budget reductions are necessary, decisions will be made with a focus on preserving educational quality, safety and support services.”

District leaders hope to minimize the impact on employees.

“We recognize these challenges impact people, not just budgets,” Vela said. “The district’s priority is stability for employees while ensuring student learning, safety and fiscal responsibility remain central.”

Vela ended the email by trying to keep a positive outlook.

“We know this news is difficult, but we’ll face it together, and we are working diligently to make thoughtful, student-centered decisions that preserve the quality of education and support systems provided by our staff,” he said. “One of Kent School District’s greatest strengths is the powerful partnership we share with our families and community. Your support, care, and collaboration are what make us strong.”