On Aug. 25, 2025, the Battle Ground Public Schools board of directors adopted the district’s budget for the 2025-26 school year. The budget reflects the district’s commitment to student learning and the financial realities of operating without local levy support. This includes significant use of the district’s fund balance, one measure of financial stability, to sustain operations.
Watch the budget hearing and view the slides from the presentation.
Most of the approved 2025-26 budget expenditures are lower than in the previous school year. These expenditures are necessary to meet community priorities for student learning and student needs:
General fund: $239.16 million (reduction from previous school year)
Capital projects fund: $16.39 million (reduction from previous school year)
Debt service fund: $555,000 (increased to fund energy-efficiency projects that will result in longer-term savings)
Associated Student Body fund: $1.29 million (reduction from previous school year)
Budget challenges
The 2025-26 budget was shaped by several significant factors:
Non-renewal of the local levy: With the loss of this funding source, which previously provided 13% of the district’s revenue, the district faces a $14 million shortfall over two years. This required reductions to staffing and programs.
Unfunded mandates: State funding continues to fall short in areas such as special education and substitute staffing, creating a combined funding gap of more than $7.5 million.
Rising operational costs: Increases in insurance premiums, utilities and other expenses outpaced state funding, adding another $4.6 million in costs.
Enrollment projections: While growth is anticipated, enrollment was conservatively projected for the 2025-26 budget due to the loss of levy dollars. The actual enrollment may vary.
Legislative impacts
The 2025 legislative session brought some financial relief but did not fully close the gap between costs and state funding. For example:
A shift in special education funding added about $1 million, though services remain underfunded by approximately $5 million.
An additional $750,000 in state funding was almost entirely dedicated to increased costs for insurance (an additional $223,000) and utilities (additional $514,000).
In addition, some programs lost state funding, including Outdoor School and the program that covered the cost of transporting students with additional needs.
Where the money comes from and where it goes
The 2025-26 budget projects $224.4 million in revenue and $239.2 million in expenditures.
Revenue: Due to the levy loss, state funding now makes up a larger portion (83%) of the district’s budget. The amount of revenue that Battle Ground receives is based on student enrollment. The state funding model is based on an outdated formula that doesn’t recognize unique needs among school districts. The percentage of the state’s budget that is dedicated to education has decreased over the past six years.
Expenditures: 72.2% of expenditures is dedicated to teaching activities and teaching support.
Teaching activities include classroom teachers, classroom supplies and extracurricular activities. Teaching support includes staff such as counselors, security, nurses, psychologists, occupational therapists, and more; professional development; instructional technology; and curriculum.
16.9% is for other support such as transportation, maintenance, grounds, custodians, utilities, insurance, information systems and warehouse.
5.8% is for building administration
5% is for central administration (compared to the state average of 6.6%)
As expenditures exceed revenues by almost $15 million due to rising costs, the district will draw on its fund balance to maintain operations temporarily. A fund balance is not a sustainable source of regular funding.
Staffing and program reductions
To align expenses with available revenue, the district implemented staff reductions in both certificated and classified positions. These included administrators, instructional support roles, student support staff and teachers. Middle school athletics and other programs such as Kindergarten Jump Start were eliminated. Finally, the district will no longer be able to provide school supplies by default for primary school students, and the cost of sports participation and other activities has increased.
Looking ahead
Without renewed local levy funding, the district will face mounting budget pressures in coming years. If funding is not restored by 2027, BGPS will need to make up to $20 million in further reductions to staffing and student programs. In addition, the levy failure in 2025 will dramatically drop the financial health score, which indicates financial stability.
Increasing state control
It is important to note that a school district’s decreased financial stability means increased state oversight. The Office of the Superintendent of Public Instruction’s authority to dictate or approve specific school district financial actions increases as the district’s financial situation worsens.
The district continues to monitor finances closely. A monthly audit committee meets with a member of the board of directors, and the district participates in an independent audit by the state. Battle Ground Public Schools recently received a clean audit from the Washington state auditor’s office, reflecting strong fiscal management.