Highline Public Schools serves around 17,000 students grades PK-12 in the communities of Burien, Des Moines, Normandy Park, SeaTac and White Center in Washington State. The district has 34 schools, employs more than 2,000 staff members, and offers a wide variety of educational opportunities from early childhood to college preparation.

We are committed to ensuring that every student in Highline Public Schools is known by name, strength, and need, and graduates prepared for the future they choose.

Summary

As Highline Public Schools planned for the 2026–27 school year, the district continued to maintain a stable financial position due to steady enrollment and the difficult budget adjustments made in recent years. However, school districts across Washington state continued to face significant financial pressures resulting from ongoing underfunding of key components of basic education.

Highline reduced its General Fund budget by approximately $8 million for the 2026–27 school year to maintain long-term financial stability. These reductions were necessary as rising costs for staffing, insurance, utilities, transportation, and daily operations continued to outpace the funding provided by the state. As part of this effort, the district identified central office reductions, including the elimination of 31.5 positions, while prioritizing resources that directly support students and classrooms.

Over the past several years, the share of the state budget dedicated to K–12 education declined from approximately 51% in the 2019–21 biennium to roughly 43% in the current state budget, despite rising costs for school districts. The district continues to advocate for the full funding of basic education, which the Washington State Constitution identifies as the paramount duty of the state.

With limited relief from the state legislature and continued uncertainty surrounding federal and state funding, school districts such as Highline must continue planning carefully for future years. The district remains committed to improving efficiency, making thoughtful reductions when necessary, and aligning resources with the goals of the Strategic Plan.

The 2026–27 budget planning process included extensive collaboration and community engagement. Feedback was gathered from staff, students, families, and community members through surveys, advisory groups, and public meetings. This input, combined with careful analysis of enrollment trends, staffing needs, and program priorities, helped guide decision-making and ensured the district remained fiscally responsible while maintaining a focus on student success.

Over the past several years, Highline implemented targeted budget reductions to address structural deficits and strengthen its long-term financial outlook. While these decisions were challenging, they helped maintain financial stability, preserve core services, and avoid more disruptive adjustments in the future.

The district remains committed to transparency, responsible stewardship of public funds, and delivering on the Highline Promise—to know every student by name, strength, and need so they graduate prepared for the future they choose.

The Board of Directors held budget and financial planning work sessions throughout the year to review the district's financial outlook, priorities, and budget assumptions. Superintendent Dr. Ivan Duran led the development of the 2026–27 budget in collaboration with the district's senior leadership team, ensuring that budget decisions aligned with the district's strategic priorities, educational goals, and long-term financial sustainability.

Financial Overview

The budget is developed using the guidelines of the Washington State Office of Superintendent of Public Instruction. It is organized into a series of accounts called funds.

General Fund

The General Fund accounts for the district’s day-to-day operating activities and supports instructional programs, student services, transportation, maintenance, administration, and other operational functions. The 2026–27 budget was developed using current legislative funding assumptions, projected enrollment, collective bargaining agreements, and anticipated economic conditions.

State funding continues to be based primarily on Washington’s prototypical school funding model, which provides allocations for employee compensation, health care benefits, retirement contributions, special education services, transportation, and other categorical programs. General Fund revenues are derived primarily from state apportionment, voter-approved Educational Programs and Operations levies, local and federal grants, and other local sources. Revenue estimates are based on current state law, enrollment forecasts, approved levy authority, and available information regarding program funding.

Budgeted expenditures are driven primarily by employee salaries and benefits, which represent the largest component of district operating costs. Additional expenditures support instructional programs, student services, transportation, utilities, insurance, contracted services, technology, and other operational needs. Expenditure projections incorporate estimated increases in compensation, benefits, inflationary costs, and contractual obligations.

Highline Public Schools is experiencing greater enrollment stability than in recent years, providing a stronger foundation for financial planning. Current projections indicate a relatively stable student population throughout the planning horizon, although demographic and economic factors continue to influence enrollment patterns across the region. Because enrollment remains a primary driver of state funding, enrollment forecasts continue to play a significant role in budget development and long-range financial planning.

Washington State requires school districts to prepare a four-year financial plan as part of the annual budget process. Highline Public Schools utilizes long-range forecasting to evaluate the impact of enrollment trends, funding levels, compensation commitments, and operating costs on future financial conditions.

The district’s four-year financial plan reflects the best information available at the time of budget adoption and is based on reasonable assumptions regarding enrollment, state and local revenues, compensation costs, and program expenditures. The plan serves as a planning tool to assess the district’s expected financial position under current assumptions and supports the district’s commitment to maintaining adequate fund balance reserves to address unforeseen circumstances, economic uncertainty, and future financial challenges.

Actual financial results may vary due to changes in enrollment, legislative actions, economic conditions, collective bargaining outcomes, funding levels, and other factors. The district will continue to monitor these variables and make adjustments as necessary to maintain fiscal sustainability and support student success.

Capital Projects Fund

The Capital Projects Fund accounts for resources dedicated to the acquisition, construction, modernization, and maintenance of district facilities, as well as investments in technology infrastructure that support student learning and district operations. Revenue sources include voter-approved capital levies, state matching funds when available, impact fees, investment earnings, and other capital-related funding sources.

Highline Public Schools continues to implement a long-range facilities strategy designed to address aging school buildings, preserve existing assets, improve learning environments, and support the district's educational mission. Capital investments are guided by facility condition assessments, educational adequacy considerations, enrollment trends, and community priorities.

The district benefits from the ongoing work of its community-led Capital Facilities Advisory Committee (CFAC), which reviews facility needs and provides recommendations regarding future capital investments and funding strategies. During the 2025–26 school year, CFAC completed a comprehensive review of district facilities and developed recommendations for future school modernization and replacement projects. These recommendations focus on addressing aging infrastructure, improving safety and accessibility, reducing long-term maintenance costs, and creating learning environments that meet the needs of current and future students. The School Board is considering these recommendations as part of potential future bond planning.

The district is also evaluating a renewal of its Capital Technology Levy to provide ongoing support for student and staff devices, network infrastructure, cybersecurity systems, classroom technology, and critical operational systems. Technology investments remain essential to supporting teaching and learning, district operations, communication systems, and student safety.

The 2026–27 Capital Projects Fund budget includes resources for facility preservation, modernization projects, technology infrastructure, health and safety improvements, and other capital priorities identified through the district's long-range planning process. Expenditure projections reflect planned project schedules, available funding sources, and anticipated capital needs across the district.

Capital Projects Fund revenue and expenditure projections are based on current levy collections, anticipated future voter-approved capital funding, project timelines, state funding assumptions, and ongoing facility and technology requirements. The district will continue to monitor project costs, construction market conditions, and funding opportunities to ensure responsible stewardship of public resources while maintaining safe, effective, and future-ready learning environments for students.

Debt Service

Debt Service revenue and expenditures are based on projected bond sales and tax levies required to redeem the principal and pay interest on current and future bond sales.

Transportation Vehicle

Transportation Vehicle projections of revenue and expenditures are based on the district’s Transportation Vehicle Fund Purchase Plan. Revenues assume continued state depreciation revenue and investment earnings. Expenditures assume replacing aging equipment according to the purchase plan.

Associated Student Body

The Associated Student Body Fund accounts for the student extracurricular activities in each school. Each school student body organization prepares and submits, for Board approval, a revenue and expenditure plan of ASB activities for the school year.

Explanation of Changes

Revenues

State revenues reflect funding provided through Washington’s prototypical school funding model, which includes a 2.6% state cost-of-living adjustment. While enrollment is expected to remain stable, the state continues to underfund key areas including special education, transportation, and operating costs. Federal revenues are expected to remain stable and continue supporting programs that serve students with specialized educational and support needs.

Local revenue is expected to increase in 2026–27 due to voter-approved Educational Programs and Operations (EP and O) levy collection. Local levy funding remains essential for supporting educational programs, student services, and operational costs that are not fully funded by the state.

Expenditures

Total expenditures increase in the 2026–27 budget primarily due to employee compensation and benefits, as well as rising fixed costs such as insurance, utilities, and fuel. Additional increases are driven by grant-related expenditures that support specific program requirements.

These increases are partially offset by reductions associated with updated enrollment projections, budget realignments, and adjustments to staffing allocations. In contrast, expenditures for Career and Technical Education (CTE) are projected to increase due to anticipated growth in program enrollment and participation.

Fund Balance

Highline continues to use a portion of its fund balance to support ongoing operations; however, the district has implemented substantial expenditure reductions over the past several years to ensure long-term fiscal stability and compliance with the Board of Directors’ minimum fund balance policy of 3% of expenditures. These actions have been necessary to align expenditures with available revenues while maintaining core services for students.

Although fund balance use continues in the short term, budget planning and ongoing adjustments are intended to reduce reliance on reserves over time. The district remains focused on maintaining financial stability by balancing revenues and expenditures through continued efficiency measures, staffing adjustments, and careful allocation of resources.

Highline Public Schools experienced an overall decline in student enrollment between October 2019 and October 2025. During this period, enrollment decreased from approximately 18,200 students to 17,300 students, a net decline of about 900 students.

Looking ahead, enrollment is expected to stabilize in the near term, followed by gradual growth over time. Future enrollment changes are primarily linked to continued multifamily housing development within district boundaries and broader regional demographic conditions. While short-term fluctuations may continue, overall enrollment trends are expected to remain more stable than in the immediate post-pandemic period, with long-term growth tied to housing development and community demographics in South King County.

The following tables reflect October P-223 student headcount enrollment (excludes full-time Running Start, Open Doors, and Transitional Kindergarten students.)

Data contained in this report reflects information available as of the date of extraction. Actual amounts may differ from subsequent reports due to post-extraction adjustments, corrections, or revisions.

Tax Base and Tax Rate Trends

Local levies remain an important source of funding for programs and services that are not fully funded by the state. Highline voters approved a renewal of the Educational Programs and Operations (EP and O) Levy in November 2025. The voter-approved levy is expected to generate up to approximately $333.9 million between 2027 and 2030, with actual collections dependent on enrollment and assessed property values.

The district also relies on voter-approved capital funding to support technology infrastructure, facility improvements, and long-range capital needs. Planning for future capital investments is informed by the district's community-based Capital Facilities Advisory Committee (CFAC), which reviews facility conditions, enrollment trends, housing development, and future capacity requirements. The committee's recommendations help guide facility modernization efforts and support safe, equitable, and effective learning environments for students.

Changes in Debt

The district continues to meet all debt obligations through the Debt Service Fund using voter-approved property tax collections. Outstanding debt consists primarily of voter-approved general obligation bonds issued to finance school construction, modernization, and capital improvement projects.

Debt service expenditures include both principal and interest payments on outstanding bonds. As scheduled principal payments are made, the district's overall debt burden continues to decline over time. Debt management practices are designed to maintain strong fiscal stewardship while supporting long-term facility needs and preserving the district's financial stability.

The district regularly evaluates opportunities to manage debt efficiently and align repayment schedules with available revenue sources. Future debt levels will depend on capital funding decisions, facility improvement needs, voter-approved bond measures, and market conditions.