Business Office

The North Kitsap School District (NKSD) has initiated its budget planning process for the 2023-2024 academic year. This comprehensive and transparent process aims to ensure the optimal allocation of resources to support the district's educational goals while maintaining fiscal responsibility. The current budget planning process faces several challenges, including an unusually large fund balance, enrollment uncertainties, limitations on local levy collections, and the expiration of federal COVID-19 relief funds.

Key considerations for the 2023-2024 budget process:

1. Fund Balance: The current fund balance is larger than normal, but the district experienced a significant deficit in 2022. Using the fund balance for continuous expenses, such as increased salaries, is not sustainable in the long term. The district must prioritize strategic spending and find ways to reduce the deficit.

2. Enrollment: Enrollment remains lower than usual, resulting in a slight overstaffing situation. The district will need to assess staffing levels based on demographer forecasts, which predict approximately flat enrollment in the coming academic year.

3. Local Levy Collection: The local levy collection for the 2024 tax year will be limited by an enrollment cap. NKSD must carefully consider how to allocate available funds to best serve the needs of the district and its students.

4. Federal COVID-19 Funding: Extra federal COVID-19 funding has been previously expended, placing additional pressure on the district's financial resources. The district must explore alternative funding sources to support ongoing pandemic-related expenses.

5. Legislative Session and Funding Formula: The 1223 Legislative session has just begun, but there is little expectation of widespread changes to the K-12 funding formula. NKSD's budget planning process will assume a 5.5% increase in state revenue for funding formulas (with the governor's budget projecting a 4.5% increase) and similar increases in expenses.

6. Other Revenue Sources: Other revenue sources are assumed to remain approximately unchanged. The district will need to explore creative ways to generate additional revenue or optimize existing resources.

Taking these considerations and assumptions into account, the NKSD budget planning process will involve extensive stakeholder engagement, including students, parents, teachers, staff, and the community. Their input and feedback will be crucial in creating a budget that reflects the district's priorities and addresses the diverse needs of our schools.

By adopting a fiscally responsible approach, the North Kitsap School District aims to build a strong foundation for academic excellence and student success in the 2023-2024 academic year, despite the current financial challenges.

2023 - 2024 Budget Development

• 2023 - 2024 Budget Process and Timeline
• 2023 - 2024 Budget Study Session Slides - March 23, 2023