2023-24 Expenditure Reduction Plan

2023-24 Preliminary Expenditure Reduction Plan

Revenue from the state to school districts is primarily based on student enrollment. Though our enrollment is somewhat flat, Lake Stevens School District still needs to reduce its expenditures for the upcoming budget cycle. We are not alone in this, as many districts in our state are experiencing the same dilemma. The following factors detail why the Lake Stevens general fund budget needs to be reduced:

• McCleary Case did not fully fund education as expected
• Loss of regionalization
• Inflation and high cost of salaries
• Flat enrollment
• Loss of Levy Equalization Assistance
• Ending of one-time federal funding (ESSER)

The combination of the above factors has culminated in a budget shortfall for many districts to varying degrees. 

The Lake Stevens Board of Directors gave the financial directive to maintain an ending fund balance of at least 5% of expenditures. They also gave guidance to keep the reductions as far away from student instruction as possible. 

Fortunately, our reductions are projected to be far less than others in the state. Our plan is to manage most of our reductions through attrition, reduced overtime expenditures, and reduced building-level allocations for supplies and materials. The preliminary expenditure reduction chart below details the areas affected.  This plan may change due to current revenue projections calculated by OSPI using the conference budget. Implementing this plan will allow us to balance our 2023-24 budget, as well as position us to craft and balance a 2024-25 budget.