2026–27 Budget: Where We Are and What Comes Next

Puyallup School District is continuing work to address its financial challenges while maintaining essential services and programs for students. The district has taken significant steps to reduce expenditures and strengthen financial controls for the 2026–27 school year, while also planning for the longer-term financial sustainability of the district. 

The School Board has been reviewing the 2026–27 budget throughout the summer as part of the district’s annual budget development process. The Board received an initial review of the draft budget during its July 14 study session and continued its review at the Aug. 3 meeting. The Board is scheduled to consider final approval of the 2026–27 budget on Aug. 17. 

Budget Updates & Board Review 

The School Board has been reviewing the district’s financial outlook and proposed 2026–27 budget throughout the summer. 

• July 14, 2026 – Board Study Session 
  The Board received an initial review of the draft 2026–27 General Fund budget, including projected revenues and expenditures, key financial considerations and the district’s multi-year financial forecast.
   
• August 3, 2026 – Board Meeting 
  The Board continued its review of the proposed 2026–27 budget and received an updated financial report. 
   
• August 17, 2026 – Board Meeting 
  The Board is scheduled to consider final approval of the 2026–27 budget. Following Board action, this page will be updated with the final approved budget and current financial projections. 

Understanding the district’s financial position 

Like many school districts across Washington, Puyallup continues to face a gap between the ongoing cost of providing services and available ongoing revenue. 

Several factors are contributing to increased expenditures, including: 

• Salary and benefit increases, including the state’s 2.6% inflationary increase and employee step increases 
• Increased special education costs, including more students qualifying for services and increased out-of-district placements 
• Higher insurance premiums 
• Increased utility costs 
• Other known and anticipated costs that require contingency planning 

At the same time, the district continues to face limitations in state funding. Legislative changes have reduced some previously anticipated revenue, including approximately $1.5 million in General Fund revenue compared with estimates made before the legislative session. 

For 2026–27, the district is projecting both increased revenues and increased expenditures. The final budget figures will be reflected on this page following Board approval. 

Significant reductions have already been made 

The district has taken significant steps to reduce expenditures and manage available resources. Current budget restoration efforts have resulted in approximately $15 million in reductions and other cost offsets. 

The district is also strengthening financial controls and monitoring processes. These include: 

• Implementing budget controls that can prevent purchases that would cause a budget to be overspent 
• Meeting regularly with department leaders to review budgets and updated projections 
• Developing position control to better monitor budgeted and actual staffing 
• Continuing monthly projections of the district’s ending fund balance 

These measures provide greater visibility into district spending and help inform ongoing budget decisions. 

What does local levy funding support? 

Local levy funding is an important part of the district’s ability to provide programs and services that are not fully funded by the state. 

For 2026–27, the district expects approximately $75 million in local levy funding. Levy resources support a range of district costs, including: 

• Unfunded salaries and benefits 
• Educational programs and classroom materials 
• Professional learning and teacher development 
• Basic education substitutes 
• Athletics and extracurricular activities 
• Employee leave cashouts 
• Transportation, overtime and other costs not fully covered by state or federal funding 

Because local levy funding supports a broad range of district operations, it is an important component of the district’s overall financial plan. 

Looking beyond 2026–27 

While the immediate focus is on adopting and implementing the 2026–27 budget, the district’s financial challenge extends beyond the upcoming school year. 

The district’s four-year General Fund forecast illustrates the potential long-term impact of current revenue and expenditure trends. Under a scenario in which no additional actions are taken and annual expenditures grow by 3% while revenues grow by 2%, the General Fund balance could become negative within two years. 

Under those assumptions, the projected deficit would reach approximately $12.1 million in 2028–29 and $33.9 million in 2029–30. 

These figures are projections, not predictions. They are intended to illustrate what could occur if current financial trends continue without additional adjustments. 

The forecast underscores the need for a long-term budget restoration strategy that considers both expenditures and revenue. 

Planning for the next phase 

The district is preparing to move from immediate budget reductions and financial controls toward a longer-term budget restoration process. 

In April, the School Board adopted a resolution establishing budget committees as a recurring part of the district’s annual budget development process. 

Beginning this fall, district staff will identify areas that would benefit from committee review and establish each committee’s purpose, membership, timeline and expected deliverables. 

The committees will serve in an advisory capacity. Their recommendations will help inform the Superintendent’s development of the 2027–28 budget. Opportunities for community participation will be included in at least some of the committees. 

What comes next? 

• August 17, 2026: The School Board is scheduled to consider final approval of the 2026–27 budget. 
• Fall 2026: Budget committees will be established as part of the district’s budget restoration and long-term financial planning process. 
• 2027–28 budget development: Recommendations from the budget committees will help inform development of the following year’s budget. 

The district will continue to provide updates to the School Board and community as the budget restoration and long-term financial planning process moves forward.