Pullman schools plan for state and federal policy changes

The Pullman School District is planning ahead for state and federal policy changes that could impact its budget.

Officials gave an update on the impacts to the district’s financial situation during a community listening session Wednesday night at Lincoln Middle School.

A small group of parents, school staff and administration tuned in to the update from Superintendent Bob Maxwell and Finance Director Diane Hodge. They provided an overview of the district’s funding, and their strategies for managing what will be handed down from the Washington Legislature in the near future.

Hodge said the district is primarily supported by the state. The Washington Legislature funds 79% of the school’s budget, which comes from statewide property tax collections that are then distributed through a funding model based on full-time student enrollment.

The district’s budget is also funded by 16% in local monies, such as voter-approved levies, and 5% of federal dollars.

Hodge pointed out a downward trend in state funding in recent years. The state budget allocation for K-12 education dropped from 52% in 2019 to 43% in 2024.

Districts across Washington are also experiencing inflation, levy limits, rising costs that outpace funding growth, and enrollment declines since the COVID-19 pandemic.

Hodge said all these components are creating statewide impacts on schools, such as larger staff and program cuts, fewer student resources and more state-mandated financial recovery plans.

Pullman’s district has seen a dip in enrollment since 2020. Hodge said enrollment peaked at 2,917 students in the 2018-19 school year, and dropped to the lowest point of 2,635 students in the 2020-21 academic year. Current enrollment sits at 2,745 students for 2024-25.

Hodge said enrollment affects how much funding the district receives from the state.

The district is also experiencing increased utilities and insurance costs, and allocated funding that doesn’t match demands. Hodge said in the 2023-24 school year, the state allocated a little over $1 million for such expenses, but insurance and utility bills came in at more than $1.8 million, leaving the district to make up the difference.

Maxwell said the Trump administration has proposed threats to federal funding for schools nationwide. The district receives more than $1.8 million from the federal government, but that could change in the years ahead.

He said the system’s schools receive around $20,500 for limited English proficiency and $548,800 for Title I, which could be cut to $0. Additionally, $124,500 in Title II funding could be reduced by 25%. The effects on $524,800 for special education and $595,500 for school food services remains unknown.

“If our school food services get cut, it’s going to be detrimental to our students,” Hodge said. “(Other services) will impact our students if they’re cut and that’s what we’re trying to avoid.”

Maxwell said the effects from cuts aren’t just going to be felt next year, but for years to come.

“This is not a next-year problem,” Maxwell said. “This will be a problem going forward at least a couple of years.”

The district is preparing to minimize impact on its students and staff, Maxwell said, by making financial decisions that align with its strategic plan. He said the district will prioritize efficiency and sustainability, along with optimizing operational savings.

Maxwell said the district may undergo budget reductions while planning for stability. He reiterated that the district will protect its school communities as much as possible, and they will continue engaging with stakeholders in the decision making process.

Pearce can be reached at epearce@dnews.com.