District Budget

School funding in Washington involves multiple funding sources with specific guidelines for how funds can be used. Money comes from the state, local taxpayers, and the federal government. Use of funds can be limited to capital, technology, building projects, specific programs.

State Funding

State provides funding for basic education to all school districts in the state of Washington with enrollment being the primary drivers using a model that depicts assumed staffing at a typical school. Unfortunately, the model has not kept pace with the challenges and expectations of student support post-pandemic and in 2022.

Why BSF?

Grants and Donations

The state allows districts to accept donations and grants to be used to support the needs of the District. Grants are provided by individual or groups for a specific purpose and typically require an application and conditions for the use of the funds. Donations typically do not require an application nor pose conditions on the District.

Specific Categorical State Funding

In addition to the general funding, the state provides funding for specific activities and supports such as transportation, special education services, and literacy supports.  In all these areas, the funding from the state is less than the actual cost for many districts throughout Washington.

Federal Government Funding

Federal government provides funding for specific activities including special education and support of students experiencing poverty. In addition, the federal government can provide one time funding to support specific efforts or time frames such as the Elementary and Secondary School Emergency Recovery (ESSER) funds that are to be used to help students recover from the impact of the pandemic both academically and social emotionally.

Local Taxpayers

The state allows districts to ask voters to provide additional funding to local schools via levy elections. These levies expire so elections are held every four years or district revenue will be reduced. Bellevue voters passed two levies in February 2022, Education and Operations (E&O) Levy and Capital/Technology (Cap/Tech) Levy.  The E&O levy is used to supplement education services while the Cap/Tech is used for school, student and staff technology and building maintenance. The amount of money that can be collected from local taxpayers in support of schools is limited by state law.

Learn more about the most recent levies approved by voters and/or How Levy Funding Helps BSD Students:

• Visit the 2022 Student Success, Future Focused Levy Renewals page

• Learn How Levy Funding Helps BSD Students Become Creators of Their Own World (YouTube)

Capital Bonds

Districts can also take on long-term debt to support large building and remodeling projects like the construction of Puesta del Sol and the remodeling of Newport High School. In February 2020, voters approved the district selling up to $675 million in additional long-term debt to remodel and rebuild specific schools. The district will sell these bonds when needed to support specific building projects.

Form F-195 is the official school district budget that must be filed with the Office of the Superintendent of Public Instruction (OSPI). The budget must include estimated revenues, expenditures, and fund balances for each fund. This data is to be compared with budgets for the prior and current years. The budget must also include total salary amounts and full-time equivalents. The high, low, and average annual salaries must be displayed by each job classification within each activity of each program. Districts must maintain and file district salary schedules for certificated and classified staff.

For budget documents from prior school years, visit the District Budget Archive.

The Somerset property was declared surplus, meaning it is no longer needed for current or future educational use. Selling this unused property allows the District to reinvest in resources that directly support students and schools.   

The Somerset II property features steep slope areas and wetlands, making it a challenging site for constructing an elementary school at this location.

The District owns other parcels of land south of I-90, more suitable for the construction of an elementary school if an additional elementary school is needed in that area in the future. 

The property is approximately 10.11 acres located in Bellevue, WA (King County Parcel ID: 2224059024). It has not been used for instructional or operational purposes and has been formally declared surplus by the School Board in accordance with Washington state law. 

The buyer is Tri Pointe Homes Washington, Inc., a residential developer. The property will be developed for residential purposes, in accordance with all local permitting and zoning requirements. 

The agreed-upon purchase price is $30 million, less earnest money, to be paid in full at closing. Earnest money of $1.5 million will be held in a restricted account during the feasibility period. 

Thanks to a change in state law (Senate Bill 5412, enacted in January 2025), the District is allowed to use these one-time sale proceeds to support its General Fund—the fund that covers basic education services such as staffing, classroom instruction, and student support. Previously, proceeds from property sales could only be used for capital projects. The proceeds from the sale of this surplus property will be utilized to restore our general fund balance as required by Board Policy 6022. This will aid and accelerate the financial recovery plan of the district. 

On July 10, 2025, BSD was placed under binding financial conditions by the Office of Superintendent of Public Instruction (OSPI). This designation allows BSD to use the sale proceeds to stabilize its General Fund, under the guidance and approval of OSPI. 

Binding financial conditions mean that OSPI has determined that the District cannot maintain basic education programs without additional financial intervention. BSD is currently under the first level of oversight: financial oversight, which includes enhanced financial planning, reporting, and support. Bellevue School District is currently at the lowest level of limited financial oversight with OSPI and is not being “taken over” by the state.  Financial oversight is designed to be a supportive measure, enhancing collaboration and providing support during district financial recovery. 

In June 2024, the Board declared the property as surplus and approved its sale. The purchase agreement was finalized on July 31, 2025.

The sale is contingent on formal approval by the Bellevue School District Board of Directors and full compliance with all legal requirements under RCW 28A.335.120, which governs the sale of surplus public school property. 

Public Offer

The District is committed to transparency and community engagement throughout this process. Regular updates will be shared through: 

• Board meetings and agendas 

• Community newsletters 

• The District website: bsd405.org 

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