Port Townsend School District passes budget

Published 1:30 am Wednesday, July 22, 2026

PORT ANGELES — The Port Townsend School District has adopted a $27 million 2026-27 budget, approving a spending plan that addresses a projected shortfall while maintaining its target reserve goal.

Amy Khile, the district’s director of finance and business operations, walked board members through the plan, which projects $25.5 million in general fund revenue and $26.97 million in expenditures.

After a $470,680 transfer from the capital projects fund, the district expects to spend about $964,567 more than it takes in.

Its ending fund balance is projected at $3.1 million for 2025-26 and $2.2 million for 2026-27.

Although the district will draw on its reserves, Superintendent Linda Rosenbury said the ending balance is expected to remain above the board’s policy threshold.

“While this budget is a deficit budget, it’s projected still to maintain that 8 percent minimum,” she said Thursday.

Total enrollment across the district is projected to decline slightly from 1,246 to 1,228 — a drop of 18 students.

Rosenbury said the district anticipated enrollment would remain fairly stable, but it budgeted conservatively so if numbers do drop, the district won’t be overstaffed.

“If enrollment stays the same or decreases, we’re going to have to face some challenging decisions next year in a way that we haven’t had to in the past,” school board director John Nowak said.

“It’s our fiduciary responsibility to stay ahead of that and not wait until there’s a problem.”

The district plans a slight reduction in teaching staff, from 95 to 94 full-time-equivalent positions. Classified staffing will increase from 65 to 68 full-time positions, largely due to added paraprofessional and support positions, Khile said.

Salaries and benefits make up $21.17 million of the $26.97 million budget, leaving about $5.8 million for other costs such as insurance, utilities, supplies, textbooks and technology — all of which are experiencing year-over-year cost increases.

On the revenue side, state general-purpose funding provides the largest share of the district’s general fund revenue at about 52 percent, but it’s projected to dip slightly from $13.6 million to $13.5 million.

State funding for some special programs also is expected to decline.

The district said it will continue to monitor its ending fund balance closely and is seeking new funding streams through grants and private donors.

Bond projects

Paul Churchill, project manager at Abbott Construction, updated the board on the Port Townsend High School and Ocean Alternative School modernization projects, funded by a 20-year, $99.25 million bond that voters approved in the February special election.

Churchill walked them through an updated design plan for the high school project, including revised floor plans that show which parts of the existing school buildings can be reused and where new construction is needed. He said the design team is continuously re-estimating costs as it works, with a group of students, staff and community members — along with committees focused on specific areas like classrooms and athletics — weighing “nice to haves” against priorities.

Churchill said Ocean Alternative School’s design process will launch this winter once the high school’s design work is further along.

The board unanimously approved the plan.

The district recently completed its first bond sale of $60 million. The next bond sale is expected in 2027-28.

Rosenbury said much of the bond funds will pay for work that can’t be seen from the outside but is critically necessary.

“We keep going back to the bond, which was focused on safety, seismic upgrades, accessibility,” Rosenbury said. “It wasn’t focused on state-of-the-art athletics facilities.”

The 2026-27 budget was Khile’s last, as she is retiring. Rosenbury said a new assistant superintendent of finance and operations will start next month.

Also leaving is at-large school board director Nathanael O’Hara, who is stepping down after 12 years on the board. The district is asking for nominations to fill the vacancy; the appointed director will serve until the November 2027 election.

Reflecting on his tenure, O’Hara pointed to the Maritime Discovery Schools and place-based learning initiatives, as well as the Salish Coast Elementary School bond.

He also cited getting students back into classrooms early in the pandemic recovery, which he called probably the biggest challenge of his time on the board, but he said the way staff and the community came together made it “pretty gratifying” in hindsight.

Community members can nominate themselves or someone else they believe would be a strong fit for the role. Nominees must live within Port Townsend School District boundaries and will be asked to submit an application.

The board plans to interview up to five candidates during a public session on Aug. 6, then meet in executive session before appointing a new director in open session.

The new director will take the oath of office at the board’s Aug. 20 retreat.

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Reporter Paula Hunt can be reached by email at paula.hunt@peninsuladailynews.com.