Navigating the VPS Budget: Balancing Resources & Priorities Effectively managing the VPS budget while providing students with a high-quality education, prioritizing their safety, and offering essential resources for their well-being requires skillful planning and resource management. As we review our financial forecasts, a mix of positive developments and new challenges lie ahead. BUDGET UPDATE POSITIVE DEVELOPMENTS Special Education: The state has raised the funding cap for Special Education (SPED) to 15% of total enrollment, up from the previous 12%. This increase in SPED funding will enable the district to better cater to the needs of students with special requirements. E&O Levy: Additionally, the renewal of the Education and Operations (E&O) levy has been successfully passed, ensuring continued support for various educational initiatives. Special Education Needs: The projected spending on SPED services is expected to surpass the newly increased 15% (from 12%) of total enrollment, which poses further financial pressures. Inflation: Rising operating costs driven by inflation present an additional burden on the district's financial resources. OUR COMMITMENT As we navigate these challenges, we will continue to make adjustments to align the budget with enrollment and state funding. We will remain flexible and adaptable in our approach, focusing on a stair-step approach to forecasting, with the goal of avoiding sudden and drastic changes. We remain committed to providing the continuity and quality of education for all students, despite the hurdles we face. Through strategic planning, responsible financial management, and an unwavering dedication to our mission, we strive to overcome these obstacles and continue serving the needs of our diverse student body. NEW CHALLENGES End of ESSER: As the district faces the end of Elementary and Secondary School Emergency Relief (ESSER) funding, the combination of lower enrollment and increased expenses due to the growing need for support services creates a complex financial landscape. Enrollment Decline: A decline in enrollment resulting from lower birth rates will lead to lower funding levels from Washington State.