Seattle Public Schools (SPS) has been making significant reductions in its budget the last few years to move towards a position of long-term financial sustainability. Conservative fiscal practices, on-going reductions of $61.8 million in FY 2023-24 and $29 million proposed for FY 2024-25 have helped reduce the projected on-going deficit for 2025-26 from $129 million to approximately $94 million depending on the final approved budget for FY 2024-25.

SPS is anticipating one-time resources of $20 – $30 million to help balance the FY 2025-26 budget leaving a shortfall of between $50 million – $75 million. These ranges depend on unknowns such as the needs of special education students, actual enrollment, impacts of new collective bargaining agreements, and the ending fund balance from FY 2023-24. 

It is estimated that each elementary or K-8 site closure would result in savings of $750,000- $2,500,000.

On average, SPS estimates closing a site serving K-5 students would result in savings of approximately $1.5 million. Savings would be realized in the following areas.

State Activity Code Category and average estimated savings for 2025-26

• Other Support $940,000: Includes activities foundational to the operation of schools but not directly in the context of student instruction (culinary services, maintenance, custodial services, grounds, utilities, and information systems). This estimate is net of assumed on-going costs for maintenance, grounds, and utilities in vacated buildings.
• Principal’s Office $375,000: Includes management and coordination at the school level (principal, assistant principal, attendance specialists, and school clerical staff).
• Teaching Support $170,000: Includes building-based support services (non-teaching staff, building leadership team expenses, staff peak load expenses, activity-based stipends, and other miscellaneous teaching operational expenses).

Total $1,485,000

It is also anticipated that with a smaller number of schools and more stability across the district, efficiencies from centralized operational support services will also be realized.

SPS estimates the district would receive approximately $66 million in revenue through the state’s funding model for an additional 4,900 kids (enrollment decline from 2019-23).

The direct teaching expenses associated with serving those additional kids is estimated to be $54 million. This is only the direct cost of teachers and special education instructional assistants. Costs of other student facing supports such as school site administration and support staff (e.g., assistant principals, office staff, librarians, counselors, social workers) transportation, athletics, nutrition services, operations, etc. would also increase. The additional costs for those supports would be dependent on the specific needs of the additional 4,900 kids.

For 2025-26, there are no significant one-time solutions available to help balance the budget. In order to stabilize the system going forward, system changes and/or an increase in resources are required.   

In 2023-24, the district used its Economic Stabilization Account ($42 million) to help cover the $131 million shortfall. Other Fund Balances have restricted purposes, like inventory or prepaid grant funds, or district restricted funds like school carry-forward balances.  

To balance the 2024-25 budget, the district is planning to use $32 million in one-time funds from the unrestricted Fund Balance and to borrow $27.5 million from its own capital program (to be repaid with interest by June 30, 2026). These short term or “bridge” solutions are in addition to ongoing budget cuts at the central office and at schools. 

Operating Levy collections are capped by the Washington State Legislature so we are limited in how much we can collect from local taxpayers. SPS requests and receives the maximum amount allowed at the current time.

SPS and all school districts will continue to work closely with the Legislature to improve the adequacy of funding for K-12 priorities. However, due to other statewide priorities receiving increased funding, K-12 spending has decreased from 52.4% in FY 2018-19 to 43.1% in FY 2023-24 as a percentage of the total state budget. Additional funding from the State cannot be relied upon to eliminate the funding gap.

The projected deficit for FY 2025-26 is approximately $94 million. Total Central Administration spending for FY 2024-25 is budgeted at $69 million which is 5.5% of the total operations budget for SPS. This percentage has reduced from 6.4% in FY 2022-23. The district’s spending on Central Administration is in line with other peer districts in the Puget Sound area whose spending on Central Administration ranges from 7.75% to 5.04% for FY 2022-23.

One alternative to closing schools would be to have less staff at each individual school. This would mean further reducing school staff — assistant principals, librarians, counselors, social workers, instructional aides, custodians, maintenance workers, security personnel, grounds staff, and/or reducing the number of teachers by increasing class sizes.  

We believe that these types of reductions in our existing system of schools would be in direct opposition to the district and community’s vision for a system of well-resourced schools.  

As context, in the proposed budget for FY 2024-25, 73% of the $1.25 billion budget is planned to be spent on Teaching and Teaching Support ($913.7 million).  

Of the remaining $339.3 million:  

• $202.1 million (16.1%) is for Support Activities (such as student transportation, nutrition services, maintenance and operations of buildings, technology, and security),   
• $68.1 million (5.4%) for Principal’s Offices (including Principals, Assistant Principals, school office support and school office supplies), and   
• $69.12 million (5.5%) for Central Administration.  

Saving $2 million by closing an individual site is the equivalent of approximately:   

• 20-30 operational staff positions (maintenance, security, custodial).  
• Bussing for 4 schools.   
• 33% of the Seattle Public Schools’ budget for athletics.   
• 12-15 teacher, academic interventionist, librarian, counselor, social worker, or nursing positions.  
• 20-25 Instructional Assistants.  
• 25% of per pupil discretionary funding at all schools.  
• Four years of library materials allocations at all schools.  

If SPS does not consolidate elementary schools and make a change to bell times, staffing throughout the system will have to be reduced — resulting in layoffs. Specific decisions have not been made. A list of potential other options SPS could explore is below:  

Examples of high-dollar reduction options (est. > $5 million each):​  

• Additional class size increases (K-12)​;  
• Changes to labor contracts. 

Examples of medium-dollar reduction options (est. $1 – $5 million each):​  

• Additional reductions in Central Office services for schools​;  
• Additional reductions in contingencies;​  
• Additional reductions in grounds, custodial, maintenance staffing; ​  
• Additional reductions in Professional Development; ​  
• Additional reductions in school non-staff discretionary funds; ​  
• Consolidate non-traditional schools; ​  
• Program adjustments and restructuring;​  
• Reduce or eliminate athletics​;  
• Reduce non-teaching staff at schools;​  
• Reduce school specialist staff (art, music, physical education)​;  
• Reduce or eliminate preschool offerings.  

Examples of low-dollar reduction options (est. <$1 million each):​  

• Additional furlough days for non-represented staff; ​  
• Additional reductions in Senior Leadership;​  
• Elimination of shared leave program for staff; ​  
• Reductions in Security; ​  
• Relocate from JSCEE; ​  
• Travel freeze. 

While philanthropic funding can provide valuable short-term support, it doesn’t address the core issue of declining enrollment in Seattle Public Schools. Declining enrollment impacts state funding, which is based on student numbers, making it a structural challenge.

Philanthropic efforts, while helpful for specific projects or initiatives, cannot reliably cover the ongoing operational costs tied to staffing, facilities, and student services. The long-term solution lies in adapting the district’s size and offerings to align with enrollment trends, rather than relying on unpredictable external funding.

Current funding in Washington State does not support small schools. Washington state funding is based on the cost to run a 400-student elementary school.  

Small elementary schools are not financially sustainable given the current funding model and student needs, and they dilute resources available throughout the system.   

The district can go in one of two directions – we can cut services and supports in smaller schools, or we can maintain and plan to enhance student services and supports with a reduction in the number of elementary schools to match elementary school enrollment. We must consider which is the greater priority – the location of the school building or the services and educational opportunities available to students when they are at school.   

Based on October 2024 enrollment data, SPS’s average elementary school enrollment is 317 students with 29 elementary and K-8 schools with fewer than 300 students and 24 more with between 300 and 400 students. None of the surrounding districts (Bellevue, Renton, Lake Washington, Shoreline, Highline) has an elementary school with less than 300 students.     

We have too many schools for the number of students we’re currently serving.    

The budget deficit has forced us to make some tough choices about how we want to serve students. By closing schools and serving students at fewer sites we can consolidate our resources and make sure students have access to the supports and services they need and deserve such as stable support staff, art, music and PE, social and emotional supports, and inclusive learning environments.   

If we don’t close schools, we’ll need to pursue other options to balance the budget including reducing core staffing, reducing or eliminating preschool, renegotiating labor contracts, and additional reductions in central office staff, curriculum adoptions and grounds/custodial staff. SPS believes in the importance of well-resourced schools but to make that vision a reality we need to restructure our system.

The ideal size of an elementary school is 3-4 classes per grade level, which is approximately 450-600 students. 

Elementary schools of this size: 

• Still allow for students to be well-known and cared for 
• Foster diverse friendships 
• Facilitate smoother transitions to middle school 
• Promote academic excellence through consistent grade-level teams and additional support staff 
• Prioritize social and emotional development  
• Create dependable access to Art, Music, PE, Sports, and clubs 
• Provide enrichment opportunities, and create a nurturing environment for all students 
• Strategically allocate resources

Demographic predictors of enrollment include population growth, housing, births, and migration. More information is available on the Enrollment Data page.