We used our AI-powered Advisor tool to turn their insights into this comprehensive report. Read on to learn from the collective intelligence of educational experts. In this report: What’s driving the K-12 budget crisis in Washington State Where K-12 budget cuts are hitting districts the hardest Top 5 school district strategies to offset budget shortfalls Spotlight on different approaches to funding [H2] What’s driving the K-12 budget crisis in Washington State Among the Washington superintendents and education leaders we surveyed, 47% said their district’s current financial situation was very negative, negative, or fair. We asked them to identify what’s causing strain on their budgets, and the majority identified the following three reasons as making the highest impact: Increased operational expenses due to inflation - 77% According to the Washington State Standard, right now, districts are being left to foot the bill for inflation’s effect on materials, supplies, and operating costs (MSOC), transportation, and special education programs. With inadequate support from the state, school districts are having to look for other ways to close the funding gap, including local levies and cuts to other areas of their budgets. Insufficient state funding (& unpredictable federal funding) - 77% At the beginning of 2025, Governor Bob Ferguson announced Washington was facing a budget shortfall of close to $12 billion over the next four fiscal years. While Governor Ferguson has expressed his intention to increase education funding, he has also put forward measures like a pause on National Board Certified teacher bonuses. And with 7% of the state’s education budget coming from the federal government, the uncertain federal funding situation puts programs at risk. In Washington, the majority of federal funding falls under the Individuals with Disabilities Education Act, Title I for high-poverty schools, and the U.S. Department of Agriculture school lunch program. Increased staffing costs - 57% The League of Education Voters found that school district expenditures on staff have increased by 19.7% between 2019 and 2023. In Washington, school districts are spending above and beyond their state-allocated funds on staff—including 40% more on office support and custodians, 5% more on teachers, and 11% more on teachers’ aides. These extra funds are in the balance as school district budgets tighten. With these issues in mind, WASA members shared how they’re having to trim their budgets, and what that means for Washington’s K-12 students. [H2] Where K-12 budget cuts are hitting districts the hardest We asked our conversational AI analysis tool, Advisor, to read through every response and identify the areas being hit the hardest and what issues may arise for the districts. Based on WASA members’ responses, the top three areas impacted most by district budget cuts are: 1. Staffing Reductions: Many responses indicate reductions in staffing, including both teaching and administrative positions. Concerns: Impact on educational quality: Less individualized attention for students and potentially lower educational outcomes. Increased workload for remaining staff: Leading to burnout and decreased job satisfaction. Direct impact on students: Fewer teachers and support staff can lead to reduced services and opportunities for students. 2. Programs and Services: Several responses mention cutting or reducing after-school programs, summer programs, and other non-essential services. Concerns: Reduced student opportunities: Affects their overall development and engagement with the school. Long-term educational outcomes: Extracurricular activities and specialized programs play a crucial role in a well-rounded education. Community trust and support: Parents and community members may feel that the district is not providing adequate educational opportunities, which can impact future funding and support. 3. Maintenance and New Initiatives: Some responses highlight deferring maintenance, postponing curriculum adoptions, and slowing the creation of new programs. Concerns: Deferred maintenance issues: Deferring these expenses will result in deteriorating facilities and higher costs down the line. Impact on learning environment: Neglecting maintenance can negatively impact the physical condition of schools, which in turn affects student and staff well-being. Postponing curriculum adoptions: Can hinder the district's ability to provide up-to-date and relevant educational content. [INSET] “I use ThoughtExchange to frontload something that is currently happening, like budgeting priorities and visioning for increasing revenue so we don’t have to do reductions. With ThoughtExchange, I get to find out what people really feel, what is really living in people, and what is resonating with people. I get to learn the areas that I can act on.” - Cheryl Jordan, Superintendent, Milpitas Unified School District [/INSET] [H2] Top 5 school district strategies to offset budget shortfalls We then asked Advisor to create an action plan for school districts looking for WASA members’ budget shortfall strategies. In just a few seconds, Advisor had the following report ready outlining the strategies our participants are using in their districts. — [H3] Report: Actionable Budget Strategies from District Leaders School districts are facing significant budget constraints, necessitating a range of strategies to manage financial challenges while striving to maintain the quality of education. This report outlines the top five strategies WASA members are using to offset budget cuts, providing insights into the rationale behind each approach and examples of participant thoughts. 1. Staffing reductions "Reducing staff. Staffing is 81% of our budget." "Reduction in staffing through attrition, shuffling/juggling of staff as needed to fill partial positions." Strategy: Reducing the number of staff through layoffs, attrition, and not filling vacant positions. Rationale: Staffing costs make up a significant portion of the budget, so reducing staff is seen as a necessary measure to align expenses with available funding. This helps districts manage their financial constraints but can impact the quality of education and increase workloads for remaining staff. 2. Careful budgeting and spending "Careful budgeting. We have strong voter support now but could lose that if not careful." "Sticking to our planned budget! No other option but to exist within our budget and maintain district position as circumstances around us outside of our control continue to change." Strategy: Implementing more cautious budgeting and spending practices, focusing on essential expenditures and reducing non-essential costs. Rationale: This approach helps districts maintain financial stability by ensuring that spending does not exceed available resources. It requires careful prioritization and can involve difficult decisions about what programs and services to cut. 3. Seeking additional funding "Applying for grants. It helps bridge the gap." "Seeking out ‘other’ funding streams. Don’t feel we can be dependent on government supports." Strategy: Actively seeking additional funding through grants, partnerships, and other revenue sources. Rationale: Additional funding can help bridge budget gaps and reduce reliance on government funding. This strategy requires significant effort but can provide much-needed financial support and foster community engagement. 4. Community and legislative advocacy "Consulting together, lobbying, emailing elected officials. It will take all of us to resolve these dilemmas." "Legislative advocacy. We need the legislature to honor their paramount duty!" Strategy: Engaging with the community and lobbying elected officials to secure more funding and support. Rationale: Advocacy efforts can help raise awareness of the district's financial challenges and garner support for increased funding. Success depends on collective efforts and the political will of elected officials. 5. Cost-sharing and efficiency measures "Agreements with other school districts. Saving money by shared staffing models is critical - saving on benefits and splitting salary costs." "Establish and maintain cooperatives to share costs, such as our regional Science Education Cooperative." Strategy: Finding ways to share costs with other districts and implementing efficiency measures to reduce expenses. Rationale: Cost-sharing and efficiency measures can help districts save money by pooling resources and finding innovative solutions to reduce expenses. This approach requires coordination and collaboration but can lead to significant cost savings. Conclusion The strategies outlined in this report reflect a combination of immediate cost-cutting measures and longer-term efforts to secure additional funding and improve efficiency. By reducing staffing, implementing careful budgeting, seeking additional funding, engaging in advocacy, and finding cost-sharing opportunities, districts aim to manage their financial challenges while striving to maintain the quality of education. Each strategy comes with its own set of challenges and requires careful consideration to balance financial stability with the needs of students and staff. --- [INSET] We did this with 89 educational leaders, but Advisor could have done the same with a group of 10,000 or more. Imagine engaging an entire community—staff, students, and parents—on your attendance policies, and having hundreds or thousands of insights analyzed and distilled into a plan that speaks directly to their concerns and suggestions. In seconds, not weeks. ThoughtExchange enables district leaders to respect their participants’ time and respond to their feedback far faster than traditional surveys and analyses allow. [/INSET] [H2] Spotlight on different approaches to funding We then asked Advisor if there were any responses that were mentioned less frequently than others, but had resonated with participants. This is what it highlighted. Outliers in terms of frequency In analyzing the participants' responses, a few thoughts stood out as outliers due to their unique nature or infrequency compared to other responses. Here are some of those outliers: Aligning curriculum with funding opportunities: “Maximize Career and Technical Education funding by aligning courses in Grades 7-12 for Career Pathways.” Hiring finance and operations staff: “Hiring an excellent business manager.” Reducing dependence on federal funding: “We did not depend on federal funding for extra staff, we projected enrollment and made staffing changes based on predictions.” "Not relying on Federal Funding, it is a small part of our budget" These responses surface some interesting and potentially unique ways that some WASA members are mitigating their budget issues. [H2] Leading the way in resilient school finance We want to thank everyone who joined our conversation. The comprehensive and thoughtful responses that WASA members shared with us demonstrate how committed they are to student success. Every district is unique, and so are the budget strategies that will work best for the community. Staff, parents, and students themselves are the best people to turn to for effective, supported solutions. Many of our customers are currently holding these important conversations using the ThoughtExchange platform. They’re able to leverage our responsive, flexible engagement methods to get people’s real perspectives. They’re using our lightning-fast analytics to understand all angles and develop action plans that speak to their communities. We’re not just a survey—we’re personalized and prioritized engagement that helps build community buy-in and understanding of budget decisions.