District Financial Update: June Financial Progress

Dear Bellevue School District Community,

As we enter the final stretch of the 2025–2026 school year, we want to share an update on our financial progress and next steps.

This year has asked a great deal of our system, and we are deeply grateful for how our staff, families, and community have shown up, centering students while navigating complex financial decisions with care and flexibility.

Because of that collective effort, we are seeing meaningful progress. Our financial position is $15.6 million stronger than this time last year, and our projected year-end fund balance has grown from $1.9 million in November to $11.5 million in April. This reflects disciplined spending, avoiding contingency funds, and strong reimbursement of special education costs.

Focusing on Stability   

At the same time, we are still stabilizing. We are not yet at a fully restored fund balance, and short-term cash flow support is still needed. Last May, the Board approved a $13 million interfund loan to support obligations like payroll, which is due this July.

To maintain stability, the Board approved a new $10 million interfund loan on June 4, 2026–2027, $3 million less than last year, reflecting continued progress. This allows us to meet our obligations and avoid negative cash flow through June 2027.

For our schools, the goal remains stability. We are not anticipating significant budget or staffing reductions next year beyond typical enrollment adjustments, and we expect class sizes to remain stable or slightly lower.

The Work to Come   

Looking ahead, we know there is more work to do. Expenses are expected to outpace revenues, and additional adjustments may be needed without increased state funding.

Still, it is important to recognize how far we have come. This progress reflects thoughtful, sometimes difficult decisions, always with students at the center.

As we close the school year, we are both grateful and hopeful, and we remain committed to moving forward with transparency, care, and a focus on students.

Thank you for your continued partnership and support.

Dr. Heather Sánchez, Deputy Superintendent
Mr. Loren Tillman, Executive Director of Business Services