Note: Budget figures are provided for 2025-26 because the 2025-26 actuals were not known at the time of developing the 2026-27 budget. For this reason, the ending fund balance for the Actual 2024-25 column does not match the 2025-26 budget beginning fund balance. The 2025-26 budgeted ending balance also does not match the 2026-27 budget beginning fund balance because the 2026-27 budget was updated based on current information at the time of budget development.

General Fund Total Resources

The general fund uses funding from a variety of sources totaling $449.9 million for the 2026-27 budget. There are four major revenue types including state, local levy, federal, and other revenue. In addition to revenue, the general fund uses the district fund balance of $6.2 million. The following section is an explanation of each type of resource and major changes anticipated this year.

General fund total resources include district revenue and planned use of fund balances.

The general fund uses funding from a variety of sources. The following section is an explanation of each type of resource and major changes anticipated this year.

State Funding

State Funding State funding provides the largest portion of district revenue at $327.2 million or 72.7% of total resources. This amount includes both state general purpose funding and state special purpose funding.

State General Purpose Funding

State general purpose funding, or apportionment, accounts for $213.8 million or 48.2% of total general fund revenue. Apportionment is calculated using the number of students attending our schools multiplied by a legislative funding formula.

State Special Purpose

State special purpose funding provides $100 million or 22.5% of budgeted resources. State special purpose funding is designated for programs such as special education, Multilingual learner education, student transportation, and education enhancements. Most of these revenues are provided for a specific program and are not available for other purposes.

Local Levy Funding (Enrichment Levy)

Local operating levies approved by Highline voters support general education programs and operations. Levy funds will provide $70.2 million or 15.6% of budgeted resources in 2026-27 and are the third largest revenue source for Highline Public Schools. The school levy rate is based on the assessed value of property in the district, the overall amount approved by voters, and any limits set by state law.

Federal Funding

Federal funding provides $27 million or 6% of Highline Public School’s resources. These monies fund programs such as Title programs. They also provide additional funding for special education programs and support free and reduced rate lunches in the food service program. These revenues may only be used for their specific program purpose.

Other Revenue

Other revenue funding provides $19.4 million or 4.3% of budgeted resources. These monies are grouped into three categories: Local Revenue, Revenue from Other School Districts, and Revenue from Other Entities.

• Local revenue includes facility rental income, investment earnings, gifts and donations.
• Revenue from other school districts is substantially for serving students that are enrolled in another district with special education or transportation needs.
• Revenue from other entities comes from private foundations and government entities.

Grant Revenue

Major Grants

Highline Public Schools grant resources are projected to total $61.2 million for the 2026-27 budget. The major revenue types Highline Public Schools receives include State, Local Government, Federal, Gifts, Donations, PTSA, and Private Foundations. The following section is an explanation of each type of grant resource. Each grantor has its own set of rules and regulations governing the grants that it makes. Grants are intended to supplement, not replace, basic funding for a schools’ operations.

Note: Other Sources include Local Government, Gifts and Donations, and Other Funding Sources

State Grants

State grants total $36.2 million and are received from various state agencies such as OSPI and the Department of Social and Health Services.

Transitional Bilingual Instructional Program (TBIP)

The State Transitional Bilingual Instructional Program (TBIP) provides approximately $14.3 million in support for roughly 7,000 English language learners in Highline. The program funds Multilingual Learner teachers and bilingual para-educators who provide direct services to students as well as school-based and district-based specialists who support the instructional programming in our newcomer classes, and monitors student progress, and provide professional development to staff on strategies for language development and accessible content instruction for Multilingual learners. The TBIP grant also provides substantial support for dual language programs that are designed to develop English skills while maintaining strong home language skills, allowing students to achieve high levels of bilingualism and biliteracy as part of Highline’s strategic plan goals.

Learning Assistance Program (LAP)

The largest portion of district revenue from state formula grants comes from the Learning

Assistance Program (LAP) at $16.2 million.

Learning Assistance Program (LAP) is as a two-part State grant that is designed to enhance educational opportunities for students who are not yet meeting academic standards by providing supplemental supports and services. Within the framework of a Multi-Tiered System of Supports (MTSS), LAP supports and services are targeted (tier 2) or intensive (tier 3) supports that are added to accelerate learning and remove barriers that prevent students from benefiting fully from universal instruction.

These supplemental supports are most effective and efficient when they are matched to need, evidence-based, aligned across learning environments, and implemented with fidelity. Students who are eligible for LAP supports and services typically include:

• Students in TK through 12th grade who are not yet meeting academic standards in basic skill areas, including reading, writing, math, or readiness associated with these skill areas.
• Students in 9th through 12th grade who are not yet on track to meet graduation requirements, which includes 8th and 9th grade students who need additional transition support into high school.

LAP Base Allocation supports Kindergarten through 5th grade students who are below grade level in reading and math. Elementary schools typically use their allocation to fund school-based specialists or interventionists who provide students with one-on-one or small group instruction. Funding is also used to provide para educator support and extended day programs. Additionally, LAP base allocation supports 6^th through 8th grade students performing below grade level in reading and math. Secondary schools utilize their LAP dollars for transition services for 9th grade students and graduation assistance for 11th and 12th grade students who are off track to graduate or credit deficient. Secondary schools often add additional teaching staff to provide a second math or language arts class for underperforming students. The secondary schools may offer additional sections of core courses for 11th and 12th grade students who need to repeat a class to graduate, and some secondary schools fund extended day and extended year tutoring programs.

LAP High Poverty School Allocation was created in the 2017 Legislative session and resulted in an additional LAP distribution for schools with 50% or more of their students qualifying for Free and Reduced Lunch. 26 schools will receive the LAP High Poverty School Allocation. LAP High Poverty is intended to provide supports above and beyond those funded by LAP Base. Classified support for small groups, professional development for staff, and social-emotional learning (SEL) will be the areas of focus in 2026-27.

LAP High Poverty school funds supplement, and must not supplant, LAP Base funds. These funds are generated by eligible schools within the LEA (RCW 28A.165.055). Schools that are eligible for LAP high poverty funds are those with a three-year rolling average of 50% or more of FRPL as reported in CEDARS, or those that qualify through the CEP or HB 1238 provisions. These funds must be expended in alignment with the comprehensive strengths and needs of participating students in the building that generated them.

Local Government

This portion of district grant revenue is received from local government agencies, totaling $1.3 million.

Gifts, Donations, PTSA

This portion of district grant revenue is primarily from Parent Teacher Student Association (PTA/PTSA) groups across the district totaling $.3 million.

Private Foundations

Private foundation grant funding totals nearly $7.4 million and supports students directly in schools as well as districtwide support services.

General Fund Expenditures

Highline Public Schools records and reports its general fund expenses using a Program-Activity-Object format as specified in the Accounting Manual for School Districts published by the Office of Superintendent of Public Instruction (OSPI) in Washington State. Each expense is categorized with these classifications so that expenses may be viewed in different ways that describe the purpose of the expense. The following is a summary of each expenditure format.

Expenditure Programs

Program codes describe the direct expenses using state defined programs (e.g. basic education, special education, school food services, etc.). State defined activity codes label expenses by the activities accomplished with the expense (e.g. teaching, counseling, maintenance, utilities, etc.). Certain activity codes, such as teaching, may be used with many programs, while other activities are restricted to a limited number of programs.

Expenditure Activities

Activity codes are divided amongst five activity group categories of operating expenditures and include the following description and summary detail of district expenditures within these categories.

Teaching – Teaching includes expenditures for teachers, educational assistants, extracurricular activities, and teaching supplies.

Teaching Support – Teaching support includes librarians, counselors, psychologists, health services, security officers, playground and lunch supervisors, coaches, and student safety personnel. Also included are textbooks, curriculum, instructional technology, professional development, assessment, and curriculum development.

Principal’s Office – Principal’s office (also called school administration) includes principals, assistant principals, school office support, and school office supplies.

Other Support Activities – Other support activities include the cost of building operations, including grounds, building maintenance, custodial services, utilities, property management, property and liability insurance, technology services, printing, mailroom services, procurement, and warehouse services. This group also includes the expenses for school buses, Metro bus passes, and the food and operations of the district lunch and breakfast program.

Central Administration – Central administration includes the Superintendent, Deputy Superintendent, Assistant Superintendents and the Board of Directors. Also included are business and human resource services, communications, legal costs, and the supervision of the central departments mentioned above in Other Support Activities.

Expenditure Objects

Object codes represent expenses in a way that describes the item or service that was purchased or performed such as salaries and benefits, supplies and materials, contract services, etc. Objects may be used in combination with nearly all program and activity codes.

Expenditures by Program Details

Expenditures by Activity Detail

Expenditures by Object Detail

The Associated Student Body (ASB) Fund is used to account for funds raised by students to support optional, extra-curricular activities that promote the cultural, athletic, recreational, or social growth of students. ASB programs were created to encourage students to participate in extra-curricular activities outside of their basic education classes. In order to have ASB activities, Washington State law requires each school, grade seven or higher, to establish a student led Associated Student governing body.

The ASB is a formal organization where student involvement in decision-making is integral to the program’s management. Students are required to submit a constitution, bylaws and an annual budget for their school’s planned activities. Student leaders must approve all expenses for their programs and ensure that they have both enough revenues to pay bills as well as sufficient spending authority within their budget to cover costs.

The ASB Fund may consist of both public and private money. School districts who charge a fee for attendance at or participation in any optional, noncredit extracurricular event must adopt a policy for waiving all fees for students who are low income. The process for charging and collecting Associated Student Body (ASB) card fees, school-based athletic program fees, optional noncredit school club fees, and other fees from students in grades 9–12 must be the same for all students, regardless of their free or reduced-price lunch (FRPL) eligibility. Private money includes donations or money raised from charitable activities such as funds for local community projects, or relief funds for natural disasters.

Each individual school is responsible for managing and working within its ASB budget limitations. The district submits a combined ASB program budget for all schools to the School Board for approval on an annual basis. The recommended budget for the 2026-27 ASB Fund is $1,911,400.

ASB Fund Summary Details

The Capital Projects Fund is for the construction, renovation, and major maintenance of facilities, technology systems, and equipment. Capital projects support educational programs, conservation programs, and health and safety for all persons in our buildings.

Planned expenditures total $131,247,767 which includes planning for new buildings and critical upgrades at existing buildings.

The Transportation Vehicle Fund accounts for the purchase and major repairs of pupil transportation vehicles. Revenue for this fund includes state depreciation funds and investment income. Approximately $800,000 in projected revenue comes from the State of Washington for the purchase of school buses. The allocation is generated based on a depreciation schedule of the district’s bus fleet.

The only expenditure planned in the Transportation Vehicle Fund will be for school buses.

The Debt Service Fund is used to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest, and related expenses.

Bond Rating

Highline School District continues to maintain a bond rating of Aa3 from Moody’s Investors. This credit rating is on par with the State of Washington and allows the district to sell bonds in a competitive market with a favorable interest rate.

Debt Policy

It is the current policy of the School Board that prior to borrowing any funds or issuing bonds, the district shall identify and designate the source of funds to pay all debt service, including principal and interest. Special levies are used to fund voted bonds. In the case of non-voted bonds, the debt service is paid by transfers from the general or capital funds. The schedule of annual requirements to pay debt is as follows: