Tumwater School District board adopts budget, interfund loan resolution for 2026-27 cycle

The Tumwater School District (TSD) Board of Directors approved a budget and $1.5 million interfund loan for the 2026-27 school year. 

The board adopted Resolution 01-26-27, or the budget adoption resolution, with an amount of  $124,691,907 for the TSD General Fund. 

The general fund is comprised of 81.78 percent compensation-related costs, including 42 percent for certified salaries, 20.5 percent for employee benefits and payroll taxes, and 19.2 percent for classified salaries. 

Other amounts were set at $11,520,000 for the TSD Capital Projects Fund, $1,500,000 for the Transportation Vehicle Fund, $13,001,400 for the Debt Service Fund and $732,500 for the Associated Student Body Fund. 

Assistant Superintendent Ben Rarick said at an Aug. 27 meeting that three of the district’s funds — general, capital projects and debt service — will be receiving around $840,000 less for the incoming school year because of less tax income for the district. 

The situation stems from an appeal of  a tax bill.  

“The district received a pretty sizable adverse tax decision from Thurston County. … One of the largest taxpayers in our community successfully challenged their tax assessment, and the result of that is less tax revenue to the school district,” said Rarick. 

Interfund loan 

The board also adopted Resolution No. 02-26-27, which is an interfund loan that transfers money from the capital projects fund to the general fund and will be paid off with interest. 

“There's absolutely a chance that we could make it through next year without having to actually activate this loan, but there are also situations where we may need one. So instead of coming back to you later in the year with a, ‘Oops we actually need this,’ this provides the authorization,” Rarick said.  

Enrollment 

The district projects an elementary enrollment of 2,533.7 in 2026-27, which is lower than the 2,636 budgeted enrollment in 2025-26. Rarick said the district has “considerably smaller” kindergarten cohorts coming in. 

The middle school level is also projected to enroll fewer students. It is expected to enroll 1,354.4 students in 2026-27, down from 1,395 in 2025-26. 

The high school level is expected to enroll 1,619.9 students without the other options, such as New Market Skills Center and Running Start. Another 1,040 students would be added if the two schools are counted with the programs. 

“Overall enrollment … has been down, but also, enrollment between buildings and programs has also very much been in flux,” Rarick said.