North Franklin School District faces financial challenges as statewide crisis deepens

May 29, 2025

By: Katherine Trowbridge

Like many school districts across Washington state, the North Franklin School District is facing significant financial challenges as it prepares its budget for the 2025–26 school year. The strain on school budgets is being felt statewide, and North Franklin is no exception.

For the past five years, districts have relied on temporary federal COVID relief funds known as ESSER (Elementary and Secondary School Emergency Relief) to help close budget gaps and maintain operations. With those funds no longer available as of the 2024–25 school year, schools are now being forced to confront structural financial imbalances that have been building over time.

"School districts are essentially operating like households, everything is just costing more," said North Franklin Superintendent Brian Moore.

Several compounding factors are contributing to the financial strain. One of the most significant is declining enrollment, driven by smaller birth rates. School districts have seen smaller kindergarten classes year after year, directly impacting the funding districts receive from the state. North Franklin has seen enrollment shrink by 50 students over the last 5 years. That is equal to roughly $500,000 lost in state funding (about $10,000 per student). 

Inflation has also taken a toll. Rising costs for fuel, food, insurance, utilities, and services are straining school budgets, much like they are for families and businesses. At the same time, staffing costs, including increased salaries and benefits, continue to rise.

Back in January, the Graphic reported, “Moore explained the district has seen a 33% increase in operations costs, a 72% increase in food expenses, and a 138% increase in fuel costs in just the last five years. To top it off, the district saw a 151% increase in its liability/emergency insurance over seven years. “

Adding to the challenge is the high cost of operating small schools. Washington’s school funding model is based on a “prototypical school”, a standardized size used to allocate staffing and resources. In North Franklin, many schools are smaller because we serve rural communities. While smaller schools offer strong benefits for students and families, these schools do not generate enough enrollment-based revenue to fully cover staffing and operational costs, which in turn, increases the district’s overall financial pressure.

In the 2024–25 school year, North Franklin brought in about $36 million in revenue but budgeted roughly $38 million in spending. Without ESSER funds to bridge that gap, the district was forced to dip into its financial reserves. That approach is not sustainable moving forward.

To address this imbalance, the district is making significant reductions for the 2025–26 school year. North Franklin will reduce overall spending by 10% and eliminate 11 staff positions. Four of those positions were vacated through retirements and will not be refilled. The remaining seven were held by staff with temporary or emergency teaching certificates that will expire at the end of this year. Several of these staff were hired with ESSER funding as well. 

“These were very difficult decisions,” Moore said. “But they were necessary for the long-term sustainability of the district.”

The district said they are, “really looking at every empty desk critically.” They plan to consolidate classes with low enrollment and will aim to maintain class offerings and paraeducators. 

The biggest changes will be seen at the secondary level where teachers will take on additional classes which will cause a shuffle in scheduling. 

On a positive note, this didn’t require the district to cut any programs or enrichment activities, including music arts and activities. The district will also continue their after school enrichment programs, which came on with ESSER funding. The 2026 levy will determine if the community feels these are vital to continue into the future.

The staffing and budget reductions are expected to save the district approximately $1.2 million. If all goes as planned and no unexpected changes arise, Moore is optimistic that the district will be able to fully balance its budget by 2026–27.

“That would be a major success for North Franklin Schools,” he said. “Most school districts across the state are still struggling to find a sustainable path forward and may continue to sink deeper into financial trouble year after year. We’re doing everything we can now to make sure that doesn’t happen here. We’re taking a thoughtful, long-term approach that gives our district the best chance to remain strong and stable for years to come.”