Budget Restoration: Addressing the Puyallup School District Budget Deficit

The Washington State Legislature provides for basic education using a funding formula which estimates what schools need and how much money to allocate. However, the actual costs of operating a school district are often higher than what the formula covers.

To make up the difference, districts rely on a combination of state, local, and federal funding:

• State funding: Provides the largest share of the district's budget, which includes:

  • Teacher and staff salaries

  • Classroom instruction and curriculum

  • Transportation

The state’s funding formula does not fully cover the actual cost of running schools, so districts must rely on local and federal funding to fill the gaps.

• Local funding: Comes from voter-approved local levies and bonds, providing essential support for schools beyond those areas the state does not fully fund, such as:

  • Special education

  • Staff salaries and training

  • Athletics and extracurricular activities

  • Transportation needs

  • Facility improvements

• Federal funding: Supports a smaller portion of the budget but are directed toward specific programs, including:

  • Special education services (though this funding only covers a portion of the total cost, with local levies covering the rest)

  • Title I programs for students from low-income families

  • School meals and nutrition programs

  • Professional development for staff

Each funding source is restricted by law to certain uses. Here’s how state, local, and federal dollars flow into the school district budget:

• The General Fund (District's main operation budget) - a combination of state funding, local, voter-approved Education Programs & Operations (EP&O) levies, federal funds, and other localized revenue, including grants, donations, and fees. This fund supports everyday operations across our district, such as:

  • Curriculum and supplies

  • Teacher and staff salaries and benefits

  • Software, utilities, and insurance

• Capital Projects Fund - a combination of state funding and property taxes collected from a local, voter-approved capital levy or bond measure, supporting long-term facility needs, including:

  • New buildings and remodels

  • Land acquisition

  • Major facility and system improvements

  • Equipment purchases

• Transportation - a combination of state funding and property taxes collected from a voter-approved transportation levy, funding student transportation for:

  • School buses

  • Maintenance and operations
     

• Debt Service - Local, collected property tax funds specifically used for:
  • Bond repayment - long-term loans used for school construction and facility improvements.
     
• Associated Student Body (ASB) Funds - Funds from student activity fees and school-based fundraising, managed with student involvement. These funds typically support extras for student activities, such as:

  • Team or club expenses (uniforms, equipment, supplies)

  • Student-organized events and activities

  • Additional support for athletics and clubs, beyond what the district funds

Washington dedicates nearly half of its state operating budget to public schools. However, the share going to K–12 has declined between 2017–19 and 2023–25, even as district costs continue to grow.

Even with state and federal support, some required services cost more than the funding provided. The biggest shortfalls are in special education, materials, supplies, and operating costs (MSOC), and transportation.

The chart and table below show the statewide picture for 2023–24.

Units: amounts shown in billions (B) and millions (M).

Units: amounts shown in billions (B) and millions (M).

What the Gaps Mean

• Special education: Services required by law (IEPs, related services, specialized staff) outpace formula funding, creating a statewide shortfall.

• MSOC: Everyday operating costs (e.g., curriculum, utilities, software, insurance) grow with inflation and technology needs, but funding formulas don’t always keep up.

• Transportation: Fuel, maintenance, driver wages/benefits, and service requirements exceed the state allocation in many communities.

Education funding is a shared responsibility between the state and local communities. Levies and bonds approved by voters help close the gap so schools can provide students with quality instruction, safe learning spaces, and opportunities beyond the basics.