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Edmonds School District staff revealed final budget estimates during the school board’s first reading of the proposed 2025-2026 budget at its meeting Tuesday. The district is expected to have a slight surplus of about $2.6 million by the end of 2026, thanks largely to legislative changes allowing the district to collect full voter-approved levy amounts.
However, $2.6 million doesn’t go very far in a district this size, as it’s equivalent to less than two days of routine district expenses, District Executive Director of Business and Finance Lydia Sellie told the board Tuesday.
Revenues for the 2025-26 school year are projected at $452,385,000, and expenses at $449,745,000. This leaves a remaining balance of $2,640,000 — the first time revenues have outweighed expenses in the district’s budget since 2020-21, district budget records show.
The board also held a public hearing for the 2025-26 budget Tuesday. A second reading and vote on whether to adopt the budget is scheduled for the July 8 board meeting.
Before the board dove into budget projections, it celebrated Hazelwood, Seaview and Terrace Park Elementary Schools for their inclusion in the Washington State Board of Education’s School Recognition program. The schools made the list for their performance in the 2023-24 school year.
Learn more about the work of these schools here.
Budget Breakdown
Early budget estimates from February projected a $8.5 million deficit for 2025-26, but that figure was determined prior to the 2025 legislative session, before state lawmakers approved any changes in state education funding.
The slight surplus estimated for the end of 2026 follows a “very, very challenging” 2024-25 school year, Sellie said, when the district cut spending by $10.8 million to address the deficit that year (projected at $10.6 million). This was preceded by around $25 million in spending reductions over the past two years.
In addition, Sellie said the district is set to come out of 2026 just a “hair” over the board policy to maintain a 4% unassigned fund balance. Next year’s expenses are projected at $449.7 million — the district has $2 million more than the $17.9 million required.
Legislative changes played a big role in increasing district revenues for 2025-26. One change allows the district to collect a full $74.8 million voter-approved levy over the next fiscal year, Sellie said. This is predicted to increase levy collections by $6.3 million compared to 2024-25.
State lawmakers this year also eliminated the cap on special education funding that had been limited to 16% of the district’s total student population. In the past, if more than 16% of students required special education services, it would be the district’s responsibility to bridge the gap. The district hasn’t yet exceeded the cap, Sellie said.
New state legislation also increased material and operating costs (MSOCS) by approximately $37 per student through 2027, Sellie said. In addition, the district upped facility rents and the cost of tuition-based programs.
Although the district slashed more than $10 million in expenses in 2024-25, it’s able to restore some previously cut programs and curriculum, such as an allowance of $10 per student for library materials. The district also plans next year to adopt a previously delayed $100,000 health curriculum.
Rising inflation costs and an increase in family medical leave premiums and other routine labor-related costs contributed to increased expenses for the district.
Looking ahead, the district’s four-year Educational Programs and Operations (EP&O) levy approved in 2022 expires in 2026, and will be before voters for renewal to cover 2027-2030. Approval of a levy proposal is likely to come before the board in the fall before an election in February, Sellie said.
Projections show a stable budget year in 2026-27, but that assumes approval of the EP&O levy, Sellie added. After that, the budget is set to steadily decline if no adjustments are made.
In other business, the board unanimously approved two bid awards for district projects. One for $1.4 million to Diverse Earthworks, Inc. for the Madrona Bioretention Replacement project, and another $549,536 to Coast to Coast Turf for the Maplewood K-8 Field Upgrades project.
A recording of the full meeting can be found on the district’s website.
— Contact Ashley at ashley@myedmondsnews.com.
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