Olympia School District projects roughly $6.6 million ending balance for 2025-26 budget 

During the first reading of the Olympia School District (OSD) budget, a $6,586,473 ending fund balance was projected for the 2025-26 school year. 

Executive Director Kate Davis reported the budget update to the (OSD) Board of Directors and Superintendent Patrick Murphy at a meeting on Thursday, June 12. 

“We are anticipating an ending fund balance for the current year of around $7.5 million, which would become our beginning fund balance for 25-26. We anticipate revenues around $189 million, expenditures around $190 million, giving us an ending fund balance of $6.5 million — around 3.5%,” Davis said. 

Davis also explained the district is “jumping so much” from the projected revenues and expenditures into the budget because expenditures that are reimbursed from the capital project fund are also considered, and all of the payroll expenses run through the general fund. 

Sources 

Davis said 71% of the district’s funding comes from the state, including apportionment and special programs.  

The funding formula provides for materials, supplies, and operating costs, salaries and benefits, special education, pupil transportation, the Transitional Bilingual Instruction Program, the learning assistance program, as well as other special-purpose grants. 

Seventeen percent of the funds come from a voter-approved educational programs and operations levy,  which is capped by the Washington Legislature. 

 “That's up slightly in the past, we've been seeing 16% as the levy lid is lifted,” Davis said. 

Federal funding accounted for 4% of the total fund, while 8% came from other revenues and fund balance sources. 

Expenditures 

The expenditures are broken down into three basic categories: programs, objects and activities. 

Davis said the programs align closely with revenue, and the majority of the expenditures by program are projected to go to regular instruction (52%). 

Twenty percent is expected to be spent on support services, 19% on special education, 4% on compensatory education, 4% on vocational instruction, and 0.4% on other programs. 

Purchased services amount to 13%, supplies and materials 4%, and travel 0.1%.  

Most of the expenditures by activity, or the work that the district is doing, will go to teaching activities (62%). 

Other support activities are projected to account for 16% of the expenditures. It includes pupil transportation and child nutrition programs. 

Around 11% of expenditures are allotted for teaching support activities, such as counselors and educational assistants.

Six percent of expenditures are for school administration, and 5.3% are on central administration. 

More information on the district budget is available at the district’s website.