Superintendent’s Blog: An Accelerated Path to Financial Stability

Dear Bellevue Community (Families and Community Members), 

I hope this message finds you well — enjoying our beautiful summer weather and looking forward to the Blue Angels! I want to take a moment to update you on our financial situation and share the important steps we’re taking to accelerate our district’s path to fiscal health. 

A Recap of Our Financial Challenges 

Over the past several years, school districts across Washington — including Bellevue — have faced significant financial challenges. The McCleary court decision made a necessary shift in how education is funded in our state, reducing reliance on local levies in favor of increased state funding. However, state resources have not kept pace with rising costs, inflation, or the growing needs of Washington’s students. In the wake of the COVID-19 pandemic, these needs — and their associated costs — have only grown, particularly in mental health, special education, academic recovery, and attendance. 

These statewide issues were compounded by our own internal challenges. Past budget assumptions and spending practices did not fully account for these funding gaps, including the expiration of federal COVID relief dollars. As a result, we spent down our reserves faster than expected. In June, the Bellevue School District entered what the state designates as “binding conditions.” 

Binding Conditions – What It Is and What It Isn’t 

It’s important to clarify what being in binding conditions means — and what it doesn’t. This is a technical financial designation triggered when a district’s fund balance falls below a required level. Under binding conditions, the district and the state agree on specific actions (or conditions) to ensure a clear, sustainable recovery plan that will prevent further financial issues. Binding conditions provides access to additional support, tools, increased data-sharing, and guidance from the Office of Superintendent of Public Instruction (OSPI). 

Binding conditions is not a state takeover of the district. Our locally elected Board of Directors and district leadership remain fully in charge of all decisions about our budget, schools, programs, and future direction. OSPI’s role is one of partnership, support, and increased communication — not control. 

An Accelerated Path to Financial Stability: Lessons from Apollo 13 

We are proud of the progress we’ve made so far this year. While no district wants to enter binding conditions, we are leveraging every available option to accelerate our recovery. In many ways, our path forward mirrors the story of Apollo 13 — what began as a crisis has become an opportunity to chart a new trajectory. Just as NASA used the moon’s gravity to slingshot the damaged spacecraft back to Earth, we’re using every available tool — some planned, some newly available — to speed up our return to fiscal health. 

Thanks to recent legislative action, specifically Senate Bill 5412 and House Bill 2049, we now have powerful tools to close our funding gap both quickly and sustainably. SB 5412, which the Bellevue School District helped shape, allows districts in binding conditions to take interest-free interfund loans and use proceeds from one-time surplus property sales to quickly rebuild fund balances. Tonight, our Board approved the $30 million sale of a long-identified surplus property behind Somerset — an effort that began over a year ago, well before our current shortfalls or the passage of SB 5412. This sale could single-handedly restore much of our fund balance and cut our recovery timeline in half. 

More long-term, beginning in 2026, House Bill 2049 will allow us to collect an additional $500 per student through our local levy — thanks to our community, which has always supported our world-class school system. This change means approximately $5 million in new revenue for 2025–2026 and $10 million or more annually thereafter, adjusted for inflation. It’s important to note, however, that this solution mainly benefits property-rich communities like Bellevue. That’s why I’m working with superintendent colleagues and legislators to advocate for broader equity solutions, such as Local Effort Assistance (LEA), to support districts that can’t benefit from increased local levies. 

Much like the Apollo mission, our accelerated recovery is driven by human ingenuity, collaboration, and problem-solving. I’m especially grateful to the key contributors in our story — Teresa Nguyen in Accounting, who discovered SB 5412 during the legislative session; Representative Lisa Callan, who helped amend it to include all districts in binding conditions; Senators Vandana Slatter and Lisa Wellman, who continue advocating for increased levy authority and education funding; and our Board members, city leaders, state representatives, PTSA, BEA, students, and others who stood with us to secure the tools we need. I’m also deeply thankful to OSPI and the Puget Sound Educational Service District (PSESD) — our own “Mission Control” — who provide oversight, guidance, and maybe even a little duct tape to help us reach a safe and successful return. 

Gratitude for Our Community 

Finally, I want to express my deep gratitude for the tremendous community support and encouragement we’ve received. Bellevue LifeSpring, for example, just announced a $45,000 donation to clear unpaid student lunch debt. And next week, Bellevue Schools Foundation will announce another major gift to expand mental health services for our students. This community’s collective belief in our students and our mission strengthens our resolve to keep delivering the best, most innovative, and supportive public education available — ensuring Bellevue remains one of the best places in the country to live and raise kids. 

Thank you for standing with us. We’re looking forward to our best school year yet. See you in a month! 

Committed to transparency, accountability, and partnership, 

Dr. Kelly Aramaki 
Superintendent 
Bellevue School District