The Seattle School Board unanimously approved a $1.34 billion budget for the city’s public schools for the 2026–27 school year. The decision came after several months of work to reduce the district’s projected $87 million deficit.
The vote took place on the same day that the Seattle Education Association gained the authority to call a strike. That could delay the start of the school year, as happened in 2022, when classes began five days late. In that event, families would have to arrange child care and adjust their work schedules, while the district would have to make up the missed school days. A strike could also disrupt cafeterias, transportation and other school services. Employees would risk losing pay for the days they protest, but they hope to strengthen their negotiating position on wages, class sizes and working conditions.
The union, which represents about 6,000 teachers, instructional assistants, secretaries, counselors and other workers, is seeking raises of 1% to 3% for certificated employees and 3% to 5% for employees without teaching certificates, in addition to the state-mandated 2.6% cost-of-living adjustment. The last strike, in 2022, ended with an agreement providing raises of 7% in the first year, 4% in the second and 3% in the third. Last year’s one-year contract included a 2.5% pay increase.
One of the central disputes remains spending on personnel and instruction, which accounts for about 72% of the budget. The approved plan calls for roughly $50 million in cuts. The budget is technically balanced, but the district will use $21 million from its reserve fund, which is intended to cover unexpected expenses and help maintain stable operations.
About $9.8 million will be saved through a reorganization of the central administration. Under Superintendent Ben Shuldiner’s plan to eliminate “administrative bloat,” the district will eliminate about 69 full-time positions and cut other nonpersonnel expenses.
The district expects to save another $9.6 million by eliminating roughly 57 positions in schools. Staff are still being reassigned among buildings, so the final effects of these changes have not yet been determined.
The changes will also affect school buses. The district combines its own operations with services from private contractors. Zum will add 130 routes and hire 150 drivers, while First Student will reduce its services and operate about 20% of the district’s routes. District officials say shifting a larger share of the routes to Zum will reduce costs through lower prices, route consolidation and more efficient use of buses and drivers. However, the transition could lead to schedule changes and temporary disruptions. Transportation remains one of the district’s most expensive areas because it must operate a large number of routes and transport students with special needs.
To balance the budget, the district will also delay replenishing its reserve fund, use refunds under the federal Inflation Reduction Act and direct interest income from its capital fund toward instructional and capital needs. These measures are considered temporary and do not resolve the underlying problem — a persistent gap between revenue and obligations.
According to Shuldiner, the district remains “structurally insolvent.” That means its recurring revenue is insufficient to cover mandatory expenses even after one-time cuts and the use of reserves. Unlike a temporary deficit, which can be covered with accumulated funds or short-term savings, this situation requires long-term changes — permanently reducing expenses, finding new revenue sources, renegotiating contracts or seeking state intervention.
Special education and transportation are placing particularly heavy pressure on the budget. Students with special needs require individualized programs, small groups, specialized teachers, aides and sometimes costly outside services, while public funding does not always cover the actual costs. Such expenses cannot be cut quickly without violating the law or reducing children’s access to education.
The budget could turn negative as soon as the 2027–28 school year. If that happens, Washington state could require the district to submit a corrective-action plan, increase financial oversight or limit its autonomy. The superintendent prepares the budget and manages the district’s day-to-day operations, while the elected School Board approves it and oversees its implementation. The state establishes funding rules and formulas and does not usually immediately replace a School Board, but it can significantly intervene in district management if the district is unable to balance its budget.
District leaders’ goal is to increase reserves to $100 million by 2031. However, board members acknowledge that the supply of temporary solutions is nearly exhausted. Unexpected expenses are adding to the financial pressure, including a 54% increase in liability insurance costs, as is the continuing gap between the cost of mandated services and available funding.
Based on: Seattle School Board approves SPS budget