There are three reasons why BISD is in this financial situation:

1. A lack of fiscal awareness and accountability at the local level in previous years. 
2. The state’s failure to fully fund K-12 basic education
3. Slow, yet steady, declining enrollment.

The most significant of the three reasons listed above is the state’s failure to provide ample funding for school districts.

• Since 2020, BISD has been underfunded by a total of $20.25 million for Special Education, Materials, Supplies & Operating Costs (MSOC) and Transportation .
• State-provided salaries for staff do not fully cover the expense. The most straightforward example of this is teacher salaries, which have two important facets to understand. First, the state uses a state salary allocation to fund teachers based on districts’ enrollment. In 2024-25, the state allocated 193.86 teachers based on BISD’s enrollment. However, to provide a level of staffing necessary for BISD’s high-quality education, BISD staffed 233 teachers. This means BISD received ZERO funding for the 39.14 teachers above our allocation (Figure A). Second, the state provides a set figure for a teacher’s salary — $95,414 in 2024-25 — but the average actual cost for a teacher at BISD is $114,269 (Figure B). For the 2024-25 school year, BISD is paying $8.13 million in salaries from local resources (such as funds received from local levies and Bainbridge Schools Foundation) (Figure C).
• To make up for the budget shortfall in the above examples, BISD has taped into other funding sources, such as our Enrichment & Operations Levy and our fund balance (similar to a savings account). Our fund balance is now depleted. 

We are conservatively estimating that our enrollment will be down by 85 students next year (compared to this year). BISD receives approximately $11,600 per student to pay for BISD operations (including staff salaries). A loss of 85 students represents an anticipated decline in revenue by $986,000. You can view BISD’s enrollment history here.

By state law and board policy, BISD’s budget for 2025-26 must be set by August 31, before the school year begins—and before an accurate student count is available. Because of this, it is better to underestimate than overestimate. If enrollment comes in higher than estimated, any additional funds will help rebuild our fund balance (savings account). 

Like household expenses increase, so do BISD’s non-discretionary budget items, such as utilities and liability insurance. Our insurance rates are expected to increase by 15% (amounting to an approximate increase of $169,500)  and utilities (electricity, water, gas, etc.) and materials/supplies are expected to go up by 7.5% (an increase of $285,000). 

An unknown variable is potential tariffs and the impact they will have on purchased goods. 

Staff salaries comprise the largest portion of BISD’s budget and represent 85% of the budget. The only way to achieve a balanced budget is to reduce the number of staff and/or drastically reduce the amount of pay. This, coupled with a decrease in district-level budgets and an increase in revenue collection (such as increased student and facility rental fees), will close the gap.

BISD is making $6 million worth of staffing reductions, which will be proportionately distributed based on employee group. For example, BISD teachers make up 62% of BISD’s payroll expenses, and the group will be reduced by $3.7 million (which is 62% of $6 million). Classified staff make up 25% of BISD’s payroll expenses, and this group will be reduced by $1,500,000 (which is 25% of $6 million). (See Figures D & E for a more detailed explanation.)

One of the most respectful things BISD can do is to let impacted employees know as soon as possible if their position is to be eliminated or reduced. By law and union contract, certificated (teaching) staff must be made no later than May 15th; the state law and union contract stipulates that classified staff reductions must be made no later than June 30th. 
 

If we are unable to submit a balanced budget, OSPI will place us in Binding Conditions. Under Binding Conditions, Puget Sound Educational Service District would appoint an administrator to act as a financial consultant for the district. 

Yes! We agree on the importance of 6th grade band, we just need to make sure that we have a way to fund it. BISD is working with Bainbridge Schools Foundation, Band Boosters and Mr. Meehan, and assessing the overall budget in order to make a plan. We will have 6th grade band — it just might take a bit of time to sort out our plan.

Reductions are being made across all employee groups in parallel timeframes. BISD began by announcing a reduction-in-force (RIF) of certified teachers due to the complexity of the number of positions being reduced, and it will take time to work through the totality of certified RIFs and reassignments. This is an iterative process and there will continue to be changes. BISD shared information early to be respectful to our employees losing or changing positions, but this also means that it is going to take some time to settle into the final plan. Student-centered decisions will continue to be made. Administrative reductions will be made.

Administrative reductions are being made alongside all other reductions. This is an area that also takes careful planning, and the number of people to reduce is actually the smallest overall number within any category. BISD has also made administrative reductions over the last two years (Assistant Superintendent, Human Resources Director and Custodial Supervisor) that we have not refilled. Lastly, it is crucial that BISD can still run efficiently and safely on behalf of students and staff —the BISD administration team is already very small with multiple people taking on several roles.

As BISD learned last year, the district does not have the proper building configuration or space to provide equitable educational experiences for  K-6 students. Additionally, in working with the Puget Sound ESD (PSESD) financial team this year, BISD understands that the cost savings associated with closing a school are far less than initially thought. The average cost savings associated with closing a school is $1.5 million –so even if a school were closed, BISD would still have a sizable deficit to close.  The PSESD Financial Team does not recommend School Closure as a strategy to reduce expenditures.

Intervention is not the same as providing specially designed instruction to students in special education. Specially designed instruction will still be provided as determined by IEP teams based on students' individualized education plans.

 While intervention was reduced by 6.8 FTE, BISD will still have an intervention program to meet the needs of some of the district’s most vulnerable students. This will be something that continually changes based on the ability to meet the overall target of $6.6 million in reductions.

If BISD exceeds its target, its first priority will be to slowly add back certificated intervention teachers. A solid intervention program is an essential part of the Multi-Tiered Systems of Support (MTSS) process, which provides structures and systems that serve every student in BISD.

This is not true. Superintendent Amii Thompson is under contract until 2027 and accepted the same contract as the former superintendent and did not ask for an increase in compensation. The superintendent’s contract is posted here (under the Negotiated Agreements tab & Salary Schedule tab).

Class sizes will adhere to the language in the Collective Bargaining Agreement and there will not be 3rd grade classes with 40 students. All K-4 students will still receive 50 minutes of PE, STEM, Art and Music weekly. BISD recognizes that libraries will not be the same without a certificated librarian and are working on a plan to keep the libraries maintained and open, but it will take some time until it is sorted out. Highly Capable students will still have their needs met; BISD will be discontinuing the “pull-out model” for the 1st- 4th grades.

Not all of PE was eliminated, but did make reductions in PE across K-12 in order to have FTE in alignment with staffing, student needs and budget constraints. Students in grades K-12 will still have access to PE. BISD knows there is a state requirement to meet 100 minutes of PE at the 1st- 8th grade level, and is working with OSPI on this. OSPI recognizes that many districts cannot meet this due to budget reductions and overall scheduling needs, so it is providing flexibility in this area.