District faces budget challenges for 2026–2027
Mount Vernon School District is preparing for a difficult budget year, with an estimated $7.9 million shortfall for the 2026–2027 school year. While this represents about a 4% reduction, the impact is greater due to rising costs across the district.
In a message to staff, Superintendent Dr. Vergara shared, “This reduction comes at a time when costs are increasing across nearly every aspect of our system, which further compounds the challenge.”
Several factors have contributed to the deficit, including the use of $4.3 million in one-time reserve funds to balance this year’s budget, declining enrollment (approximately 135 fewer students next year), reductions in state funding, and bargained wage increases exceeding state-funded allocations.
Dr. Vergara emphasized that this is part of a larger, ongoing issue: “This is not a one-year problem… it reflects a broader financial challenge that districts like ours continue to face.”
District leaders are reviewing all spending and working to prioritize programs that directly support students. Because most of the budget is tied to staffing, some adjustments may be necessary, though the district hopes to minimize impacts where possible.
Despite these challenges, the district remains committed to students. As Dr. Vergara shared, “We will face these realities together… with a continued focus on what is best for our students.”
The district will continue to provide updates and encourage families to stay informed and engaged.
Many school districts in our state are facing significant financial challenges. We wanted to share an excellent resource that details how the state continues to fall short of its paramount duty to fully fund basic education and the resulting financial consequences for schools. You can find the link here.
We’ve created a simple, easy-to-read guide to help you better understand school finance. Click the image below to download it.
What factors are impacting the district's budget?
Several factors have contributed to the district's current budget challenges. Like many school districts across Washington, Mount Vernon School District is experiencing rising operating costs while available revenues have not kept pace with those costs.
Key factors include:
Declining enrollment. State funding is largely based on student enrollment. Although enrollment has improved since the pandemic, it remains below pre-pandemic levels, resulting in reduced revenue for the district.
Changes in student demographics and educational needs. As enrollment patterns change, the district must adjust staffing and services to meet student needs while maintaining financial sustainability.
Expiration of one-time funding. The district used one-time reserve funds to help balance prior budgets. Those funds are no longer available to support ongoing operations.
Reductions and changes in state and federal funding. The district has experienced decreases in several funding sources that support educational programs and operations including:
- State Transition to Kindergarten funding
- State transportation-related funding
- Federal grants, including Title I, Title I-C (Migrant), Title II-A, Title III, Title IV, and Special Education funding
Rising operating costs. Costs associated with providing educational services, including employee compensation, benefits, transportation, utilities, supplies, and other operational expenses, continue to increase faster than available funding.
The district remains committed to making thoughtful decisions that protect student learning while maintaining long-term financial stability.
What does the district spend money on?
The majority of Mount Vernon School District's budget is spent on the people who serve students every day. Approximately 85% of district expenditures support employee salaries and benefits for teachers, paraeducators, administrators, and other staff who provide educational services and support school operations.
The remaining 15% of the budget covers the day-to-day costs of operating schools, including instructional materials, transportation, utilities, technology, maintenance, food services, insurance, and other essential programs and services.
Several factors continue to increase district expenses:
Substitute Staffing Costs
The district spent approximately $2.0 million on certificated and classified substitutes during the 2024-25 school year. State funding covered only about $200,000 of those costs, requiring the district to absorb the remaining expense using local resources.
Employee Compensation and Benefits
Through collective bargaining agreements, the district provides competitive salaries and benefits to attract and retain high-quality staff. However, state funding does not fully cover these increases. For the 2026-27 school year, negotiated salary and benefit increases are expected to cost approximately $6.2 million more than the previous year, while state funding is projected to cover only about $2.2 million of that increase. This leaves the district responsible for approximately $4.1 million in unfunded costs.
Insurance and Utility Costs
Like families and businesses, school districts have experienced significant increases in insurance premiums and utility costs due to inflation and other economic factors. State funding for non-employee operating costs has not kept pace with these increases. For 2026-27, state funding is projected to fall approximately $3.46 million short of the district's actual operating costs in these areas.
Like school districts across Washington, Mount Vernon School District must balance rising costs with available funding while continuing to provide high-quality educational opportunities for students.
Who decides what gets reduced?
Budget reduction decisions are developed through a collaborative process involving district leadership and the School Board.
The Superintendent and district leadership team evaluate the district's financial situation, review potential reduction options, and consider the potential impacts on students, staff, and operations. Based on that analysis, the Superintendent presents recommendations to the School Board. This occurred in April of this year.
The School Board is responsible for approving the district's budget and any associated reduction plans. The Board reviews the recommendations, considers community input and district priorities, and makes the final decisions regarding budget reductions.
Why are certificated teachers with longevity in the district or a specific school being transferred into new roles?
Budget reductions can result in staffing changes throughout the district, including employee reassignments and transfers.
When making staffing decisions, the district follows the requirements of applicable collective bargaining agreements, which often include seniority provisions, while also working to align staffing with student enrollment, program needs, and available resources.
As positions are reduced, reorganized, or reassigned, some employees may move to different roles or schools. While these changes can be difficult, the district's goal is to ensure that qualified staff are placed where they are needed most to support students.
Collective Bargaining Agreements are public and can be found here: Employee & Labor Relations | Mount Vernon Schools
Why are we reducing the STEM program? Is this only happening at Jefferson Elementary?
The district is facing significant budget challenges that require reductions across multiple areas of the organization. As part of the budget planning process, district leaders reviewed programs and staffing throughout the district to identify reductions that would help address the budget shortfall while continuing to support student learning.
The decision to reduce STEM specialist positions was made as part of that broader districtwide review. These reductions are not limited to Jefferson Elementary and affect schools where STEM specialist positions currently exist (three elementary schools).
While these decisions are difficult, the district remains committed to providing students with meaningful STEM learning opportunities through classroom instruction and other educational programs.
Are Sports Medicine classes being eliminated at Mount Vernon High School?
No.
The Sports Medicine program is being paused, not eliminated.
Due to low student enrollment in the program and limited student interest for next year, the district has decided to pause the program while it evaluates opportunities to strengthen and grow participation.
The goal is to review the program, increase student awareness, strengthen student interest, and actively recruit future participants.
Next year, the instructor will teach sophomore health classes, providing an opportunity to introduce approximately 320 students to careers and opportunities in health sciences and sports medicine.
The district hopes this approach will help rebuild enrollment, generate greater student interest, and support the program's future success.
Are we eliminating the music program at Harriet Rowley Elementary School?
No. The music program at Harriet Rowley Elementary School will continue next year.
Specialists needed at the elementary level are tied to the number of classrooms in each building. In order to provide teachers with the 1 hour of planning time required as part of the MVEA collective bargaining agreement, each class requires 1 hour of specialist time each day.
Due to declining enrollment, the number of classrooms are also declining and there is a corresponding decline in specialists needed.
As part of our staffing adjustments, Harriet Rowley will have one fewer specialist position next year. However, we were able to avoid a reduction in force by transferring the current music teacher to an open music position at Jefferson Elementary. Music instruction will continue at Harriet Rowley and will be taught by another teacher.
Why are we reducing one Social Worker position?
The position was funded through a grant with Skagit County Public Health that has now been exhausted.
Unfortunately, there is no longer funding available through that grant source to continue supporting the position.
Is it true that some classes students requested will not be offered next year at MVHS?
Yes. This happens every year as part of the scheduling process.
Student course requests are an important factor when building the master schedule, but they are not the only factor considered.
Other factors include:
- Available staffing
- Student enrollment
- Graduation requirements
- Scheduling conflicts
- Availability of classroom space
Sometimes a course may not have enough student interest to run, while other courses may conflict with required classes or advanced programs.
When a requested course cannot be offered, counselors work with students to identify alternative options.
Will English Language Arts (ELA) classes be overcrowded next year?
No.
Current projections may appear high, but those numbers are expected to decrease as enrollment is finalized.
Many students initially register for courses at Mount Vernon High School while also exploring programs such as Running Start or NCTA. Once those enrollment decisions are finalized, class sizes typically decrease.
Based on enrollment trends from recent years, we expect ELA class sizes to remain within acceptable ranges.
Why are we reducing three Family Liaison positions?
These reductions are the result of declining funding directly proportional to the decrease in migrant students in MVSD.
Family Liaison positions are primarily funded through Migrant Education and Transitional Bilingual Program funds. Both funding sources have decreased over time, particularly Migrant Education funding.
The district recently corrected student eligibility reporting practices, resulting in a more accurate count of students who qualify for Migrant services. While this correction was necessary, it also reduced the amount of funding the district receives.
These reductions are not a reflection of the importance of Family Liaisons or the value they provide to students and families.
The district remains committed to supporting multilingual and migrant families and will continue exploring future funding opportunities that may allow us to restore these positions.
El distrito se enfrenta a dificultades presupuestarias para el año escolar 2026-2027
El Distrito Escolar de Mount Vernon se prepara para un año presupuestario difícil, con un déficit estimado de 7,9 millones de dólares para el año escolar 2026–2027. Aunque esto representa una reducción de aproximadamente el 4%, el impacto es mayor debido al aumento de los costos en todo el distrito.
En un mensaje dirigido al personal, el superintendente, Dr. Vergara, compartió: "Esta reducción llega en un momento en el que los costes están aumentando en casi todos los aspectos de nuestro sistema, lo que complica aún más la situación".
Varios factores han contribuido al déficit, entre ellos el uso de 4,3 millones de dólares de fondos de reserva de un solo uso para equilibrar el presupuesto de este año, la reducción de la matriculación (aproximadamente 135 estudiantes menos el próximo año), los recortes en la financiación estatal y los aumentos salariales negociados que superan los fondos asignados por el estado.
El Dr. Vergara enfatizó que esto forma parte de un problema más amplio y continuo: "Este no es un problema de un solo año... refleja un desafío financiero más amplio al que distritos como el nuestro siguen enfrentándose".
Los líderes del distrito están revisando todos los gastos y trabajando para dar prioridad a los programas que apoyan directamente a los estudiantes. Dado que la mayor parte del presupuesto está dedicado a gastos de personal, es posible que sean necesarios algunos ajustes, aunque el distrito espera minimizar el impacto siempre que sea posible.
A pesar de estos desafíos, el distrito mantiene su compromiso con los estudiantes. Tal como compartió el Dr. Vergara: "Enfrentaremos estas realidades juntos... sin dejar de centrarnos en lo que es mejor para nuestros estudiantes".
El distrito continuará proporcionando actualizaciones y anima a las familias a mantenerse informadas y comprometidas.
Muchos distritos escolares de nuestro estado enfrentan desafíos financieros. Queríamos compartir un excelente recurso que detalla cómo el estado continúa incumpliendo su deber primordial de financiar completamente la educación básica y las consecuencias financieras resultantes para las escuelas. Puede encontrar el enlace aquí..
Hemos creado una guía sencilla y fácil de leer para ayudarte a entender mejor las finanzas escolares. Haz clic en la imagen a continuación para descargarla.
