Port Angeles School District is facing $1.9 million budget gap

Published 1:30 am Saturday, April 25, 2026

PORT ANGELES — The Port Angeles School District is facing a projected $1.9 million gap as it builds its 2026-27 budget, Superintendent Michelle Olsen said, citing declining enrollment, reduced funding and rising costs.

Olsen told the board Thursday that the amount reflects about $2.2 million in anticipated revenue losses, offset by about $2.4 million in new revenue — a net gain of about $224,000. But $2.2 million in increased costs is creating the shortfall.

At its March 12 meeting, the board directed administrators to base next year’s budget on 3,088 full-time-equivalent students — down 135 from this year.

That decline accounted for about $1.4 million in revenue loss, Olsen said.

Additional revenue losses came from reductions in federal Title I funding for districts with high numbers of students from low-income households and learning assistance funding, both of which are tied to enrollment.

The district will lose funding tied to a grant that is expiring, as well.

At the same time, Olsen said, costs are increasing across several areas, particularly employee pay and insurance.

Olsen said administrators are working on a plan to address the gap and will present it to the board at its May 7 meeting.

Actions could include staffing reductions, although the school district is first looking to reduce positions through attrition, retirements and resignations.

The cost pressures come as the school district is seeing growth in special education enrollment and increasingly complex student needs.

Michaela Clancy, the school district’s executive director of special services, said the district serves 691 students in special education — about 18.1 percent of its enrollment compared with 13.82 percent in 2019.

She said the jump has been driven in part by a doubling of students diagnosed with autism and increases in other high-needs categories, such as health impairments.

More students also are requiring intensive services. In response, the school district has added a board-certified behavior analyst and contracted behavioral technicians and is planning to add specialized classrooms.

The school district’s family navigator team — Alecia Scofield, Summer Cooper and Cindy O’Connor — also has seen an uptick in demand for its assistance, with more families and students experiencing housing instability, transportation barriers and limited access to basic needs such as food and clothing.

From August to the end of March, the team served 408 students— roughly the size of Stevens Middle School’s student body.

Solar grant

Nolan Duce, the school district’s capital projects director, said the district has secured a $2.417 million solar grant to expand energy capacity at Hurricane Ridge Middle School.

The project will add about 120 kilowatts of solar generation and a battery system capable of storing roughly 1,064 kilowatt-hours, providing backup power during outages and lower long-term utility costs.

Also Thursday, the board passed resolutions proclaiming April 20-24 Public Schools Volunteer Week, May 6 as School Nurses Day and May 4-8 as Teacher Appreciation Week.

Jefferson Elementary School Principal Shanna Coleman introduced sixth-graders Isobella Higgins, Maxfield Keck and Wesley Toli as the school district’s students of the month.

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