LEA cliff threatens sustainable district budget

LEA cliff threatens sustainable district budget

Legislators have made drastic changes to the way they financially support school districts. These changes are going to take tens of millions of dollars out of our district’s budget unless something is done. But before you call Olympia, let’s rewind and get the full story. Earlier this year, voters approved the renewal of our Educational Programs & Operations Levy and our Technology Levy. Thank you, voters! We all know that levies aren’t just for the “extras” anymore. Of course they do fund the things the state doesn’t, like athletics, but they also fund the things the state isn’t fully funding, and that includes some big ticket items. “Twenty million dollars is going towards materials, supplies and operating costs,” said Superintendent Brian Lowney. “Things like insurance and utilities and keeping the lights on and all the rest. And then $5 million is going into special education. Another portion is going to transportation.” That’s a big change that is not unique to Bethel. Levies originally started as a way for communities to decide if they want to fund the extras, like sports and music. But more and more, communities are now voting if they want to keep the lights on in classrooms or not.  In the past, when communities passed levies, property-poor school districts like Bethel would also get some additional state money, called Local Effort Assistance (LEA). When our community passed the levies in February, that LEA money was incorporated into our budget. And that’s when the legislature changed the rules. “What that means for us is that we are anticipating less revenue in future years,” said Chief Financial Officer Christine Donnelly. “It's to the tune of $10 million in 2027-28.”  Yes, you read that correctly. Bethel will see $10 million less money than the state promised starting in 2027, unless something is done. And this change is impacting other districts too … just not the rich ones. “Seattle can raise a billion dollars through levies because they're property-rich,” said Superintendent Lowney. “LEA is intended to make things equitable for our students. It shouldn’t matter what zip code a kid lives in whether they get a good education or not.”  You can assume that Bethel and other property-poor districts across the state will be talking with their legislators about this, but hearing from people like you can make a huge difference. So reach out to the folks that represent you in Olympia and let them know your thoughts. You can find out who your representatives are and get their contact information at https://app.leg.wa.gov/districtfinder  [https://app.leg.wa.gov/districtfinder] A note on federal funding As one of the biggest employers in Pierce County, Bethel employs over 3,000 staff to support 21,000 students across 31 schools. It’s a lot of work and requires a lot of money. With funding issues like LEA, maintaining a balanced budget is becoming more and more difficult. That’s why it’s important to understand the district’s entire budget, which includes money coming from the federal government. There have been rumors and rumblings over the years about ongoing federal support for education, and without getting into the politics, that federal support is less than ten percent of our district's budget. But it does impact every student in the district. “I mean, no one is going to sneeze at $40 million,” said Superintendent Brian Lowney. “Of that $40 million, about half of our federal money is for Child Nutrition.” Along with money from the state, those federal dollars are the reason we have free meals for all students. The other half of our federal money is earmarked for special education, and Title programs – all of which support our most at risk students. The education and well-being of our students is our number one priority here in Bethel. If you’d like to reach out to your representatives in Washington D.C., you can find their contact information here: https://www.congress.gov/members/find-your-member [https://www.congress.gov/members/find-your-member]

A balanced budget for 2026/27

For a school district, a true balanced budget will show the money going in being the same as the money going out. And for the 2026/27 school year, that’s exactly what we have on the table, thanks to a lot of hard work behind the scenes. On top of a balanced budget, the district also just finished our annual audit from the state, which once again was a clean audit [https://www.bethelsd.org/resources/news-article/~board/headlines/post/another-clean-audit-for-bethel], countering some online opinions that we’re “mismanaging taxpayer dollars.” That’s something School Board President Marcus Young takes seriously. “I keep hearing this narrative that Bethel is mismanaging funds, we're top-heavy, we're just spending all of this money in all of these other different places.” Young said that’s simply not true. “We do smart things when it comes to the budget.” To his point, most of our money comes from student enrollment. Basically, this means the more students we have the more money we get from the state to support them. For the past four years our enrollment has been relatively flat. That’s not a bad thing, as districts around us have seen declining enrollment, but Superintendent Brian Lowney still has concerns. “Students are our priority. Students are also, from a business model, they're the revenue generator,” he said. “Enrollment is the only thing that drives revenue to the district … we want revenues to be at least as big as expenses.” For the past four years we’ve had right around 19,800 full time students. Due to that trend, we’re budgeting no growth for next year as well. Deputy Superintendent David Hammond said that conservative approach is critically important with the budgeting process. “We could budget based on 30,000 kids if we wanted to. At the end of the year, we'd be in a lot of trouble,” he said. “We're identifying trends early. We identified the kindergarten trend after COVID and budgeted and staffed accordingly. So, that's why you see it's just a very simple thing, but other districts didn't pay attention to those trends.” That’s how Bethel is able to present a balanced budget to our community for the upcoming school year. Alongside that, the state’s annual audit showed no issues. We are doing things by the book. And those books are wide open. Our School Board got a preview of the budget [https://bethelsd.community.diligentoneplatform.com/Portal/MeetingInformation.aspx?Org=Cal&Id=583] at the end of June, and they’ll take another look on August 11, 2026. You are welcome to attend the meeting in person at the Educational Service Center or via Zoom.

The long and winding road to Episode #190

A red Abbey Road Studio sign hangs above a small conference room at district headquarters. Abbey Road is, of course, where the Beatles recorded 190 of their legendary hits. Here in Bethel, this tiny room is where our flagship podcast will soon record its 190th episode. "We’re not comparing ourselves to the Beatles by any stretch of the imagination,” co-host Doug Boyles said with a laugh. “And they’re not comparing themselves to us. It’s an agreement we’ve come to." Boyles serves as the district’s Director of Communications, and the podcast is just one of many ways our district shares information with students, staff, families, and the larger community.  As the show heads into its fifth season, the podcast’s long and winding road has introduced listeners to hundreds of staff and students from across the district -- all on a shoestring budget. "It’s really something we were already doing without knowing it," Boyles said. "We would record interviews and then transcribe the audio to write articles. We just added an intro and outro, and tried to tighten up our questions to make ourselves sound like good hosts.” "We’re not really that good," joked co-host Conor Christofferson. "But a little light editing goes a long way." And with an annual $100 hosting fee, a podcast was born. After it airs, each episode is turned into other media so the information can be shared across the district in a variety of ways, from the pages of the Bethel Pride magazine to the district’s Facebook page. The goal is simple: to connect our community with the amazing people and stories inside our classrooms. When they aren't in their amateur Abbey Road studio, the duo takes the show on the road, recording the podcast at different schools to meet staff and students right where they are. For both hosts, the best part of the job is giving the microphone to the kids. "One thing we love about the podcast is amplifying student voice," Christofferson said. "It’s so important for students to be heard because they have a perspective that no staff member has. Every decision we make here -- whether it’s with the budget, curriculum, or athletics -- impacts them directly." Last season, a Spanaway Lake High School senior named Millicent even took over the podcast, producing an entire episode focused on cell phones in schools. The Bethel School District Presents podcast has been riding a magical mystery tour of success in recent years. The National School Public Relations Association has recognized the show as one of the best education podcasts in the country, awarding it Awards of Excellence in 2023, 2025, and 2026. The new season kicks off on August 5 with Episode 180, which will be all about our district’s budget, recent audit, and financial issues that may impact our students in the future. You can listen to the show at bethelsd.org/podcast [https://www.bethelsd.org/about-our-district/podcast] or subscribe on Spotify, Apple, Amazon, or wherever you listen to quality audio.

Another clean audit for Bethel

When people hear the word “audit” they start to get nervous. With personal taxes, an audit can be an intrusive exercise, feeling like you’re baring your finances for all the world to see.  Imagine being audited every year. Here in Bethel, and for school districts around the state, that’s what happens. Every year we open our doors and books to a state auditor who digs into all the numbers. This year Bethel underwent three audits: a financial audit, an accountability audit, and a federal audit which is required if you receive more than one million in federal dollars.  “We had $20 million in federal funds,” said Director of Accounting and Purchasing Joanne Klein. “So, it was definitely required.” The bulk of that $20 million is used for child nutrition, special education, and Title programs. The accountability audit makes sure we’re in compliance with state laws, rules and policies. That includes auditors reading our meeting minutes, and looking at tons of data. “It's often called the high-risk report,” said Klein. “They really want to make sure that we're protecting public funds.”  At the end of the day, what everyone wants to know is, is the district managing taxpayer funds well, and are we playing by the rules? The answer? Yes we are. This year marked another clean audit for our district. School Board President Marcus Young said the audit was a reflection of the hard work our Business Office does throughout the year. He also said the positive results reflected on the work going on at every building and every school in our district, from secretaries organizing field trip receipts to custodians tracking inventory. “If they're not keeping good records on that level, then it doesn't produce good records on Joanne's level, and it becomes a trickle-down effect,” he said. Young met with the auditor multiple times during the process and said they had nothing but kind words for our staff. “Many times, auditors are looked at as this evil person that comes in to try to embarrass districts and entities, and so sometimes they're not treated the best. But they made a point to commend our team on how hospitable they are and how they make the work easy to access.”  You can view the entire audit report and learn more at https://bethelsd.community.diligentoneplatform.com/Portal/MeetingInformation.aspx?Org=Cal&Id=587 [https://bethelsd.community.diligentoneplatform.com/Portal/MeetingInformation.aspx?Org=Cal&Id=587]

FAQ: New Bethel High School

With the new Bethel High nearing completion and getting ready to welcome students this fall, we know our community has a few questions. Here are a few quick answers to what's on everyone's mind. First, many are wondering when people will be able to tour the new facilities. We will host an official ribbon cutting ceremony on August 21, and there will also be an opportunity for public tours when the school hosts ABC Day on October 3. Regarding athletics, our three comprehensive high schools will absolutely continue to use Art Crate Field for football games. As for the old Bethel High School building, it will serve as the temporary home for Cedarcrest Middle School students and staff while their brand-new school is being constructed. Like the new Bethel High, the new Cedarcrest is funded by our successful 2019 School Construction Bond. Thank you, voters! For those asking about attendance boundaries, the opening of the new Bethel will not change anything. School boundaries are remaining exactly the same for the 26/27 school year. Finally, regarding school transportation, our Transportation Department will reach out to families directly prior to the start of school to let you know exactly when and where your child's bus will arrive. We cannot wait to share this incredible new space with our students, families, and community this fall!