SEQUIM — Sequim school board directors have approved an operating budget for this academic year with about $49.6 million in expenditures and $49.8 million revenue.
“Steady as she goes,” Superintendent Regan Nickels said.
The 4-0 vote was taken at the directors’ Aug. 18 meeting.
Nickels said the school district has prioritized staffing as it’s had reductions in recent years to help them potentially endure uncertain enrollment totals.
To counter that, she said staff have encouraged families to register their children for kindergarten, and they’ve increased communications to make the district’s website more of a resource for families.
According to the state Legislature, how much each school district receives “varies based on certain characteristics of the district with enrollment being the largest factor.”
To start the school year, district staff said they budgeted for 2,525 students throughout Sequim schools, compared with 2,511 full-time-equivalent (FTE) students to start last school year.
The totals include Greywolf Elementary School, Helen Haller Elementary, Sequim Middle School, Sequim High School, Olympic Peninsula Academy and Dungeness Virtual School in addition to Running Start students through Peninsula College.
Victoria Balint, director of human resources, told board members that enrollment is looking good to start the year.
In June, Nickels said at a board meeting that a reduction in force list was not anticipated as the district awaited state funds.
It was put on a board agenda as a “safety measure in case we could not find a pathway to deal with the financial gap, but we feel with the level of attrition, we’ll be able to manage the gap with some other measures and expenditures.”
Balint said the district has not filled the equivalent of 5.5 certificated (teacher) positions, going from 152 FTEs to 146 for the school year.
District staff report that classified and certificated salaries and benefits make up nearly 80 percent of the general fund at a budgeted $39.1 million.
Elijah Boyd, director of business and finance, said there are seven different unions within the district. Some have agreed to new contract terms while others are still in negotiations as of the budget’s approval.
The remainder of the budget includes the capital projects fund, debt service fund, an associated student body fund and a transportation vehicle fund.
For transportation, Nickels said the district ordered two new school buses, but they won’t be delivered for about nine months.
Following a board policy to keep a general fund balance at a minimum of 4 percent of the overall budget and a goal to build toward 6 percent, this school year’s surplus of about $121,000 will bring the estimated fund balance to about $2.6 million, or about 5.28 percent.
Proposed facility and field fee increases were mentioned during the public hearing, but Boyd said the fees collected have traditionally been less than $10,000.
Nickels said looking four years from now, the district is planning conservatively as they believe it will incur some new staff costs if funding is scaled down elsewhere, and they must approach grants differently.
Assistant Superintendent Donna Hudson said the district has not seen its federal grants cut back, but they are trying to pivot and move some staffing out of state and federal grant funding.
During the hearing for the budget resolution, board directors expressed their appreciation for the conservative approach to the budget and future planning while having difficult conversations.
In April 2026, the district anticipates receiving its first collection from the Educational Programs & Operations (EP&O) levy renewal approved by voters this past February. Nickels said it will help pay for items such as athletics, extracurricular activities, transportation to events and staffing that goes above the amount of funds apportioned based on enrollment totals.
She said there might be a need to shift some general positions of the past to be funded by the levy due to funding changes in state and federal sources.
As for the multi-faceted $146 million, 20-year construction bond also approved in February, Nickels said they’re awaiting the finalization of a contract with the construction management firm Wenaha Group before moving forward with next steps.
District leaders announced in July that the first of three sales for construction bonds were sold for the voter-approved projects for about $49.7 million.
Nickels said at first the construction process for projects, such as building a new elementary school and wing for Sequim High School, will “be a slower process in the front end, with more speed as construction begins.”
Board vacancy
Two applicants have applied so far for Larry Jeffryes’ District 1 director seat with the school board. He resigned on July 14.
School board directors agreed to open applications through Sept. 5 with applications available through the district’s website at sequimschools.org/School_Board/application_process.
District 1 is the western portion of Sequim School District. Candidate interviews will be conducted at 5:30 p.m. Sept. 15 at the board’s meeting with a decision likely that night.
The appointed director will join the board on Oct. 6 and serve through November 2026, when the next school board election will be held.
Those with questions can contact Trayce Norman, executive assistant to the superintendent, at 360-582-3262 or by email at tnorman@sequimschools.org.
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Matthew Nash is a reporter with the Olympic Peninsula News Group, which is composed of Sound Publishing newspapers Peninsula Daily News, Sequim Gazette and Forks Forum. He can be reached by email at matthew.nash@sequimgazette.com. He has family employed and enrolled in the Sequim School District.
