Budget Overview

Like many school districts, HSD faces a growing difference between state funding levels and the actual cost of running schools. The state of Washington is supposed to fully fund the costs of basic education, but state funding isn't keeping up with actual expenses.

State Funding Decline

In 2019, K-12 education made up 52.4% of Washington’s general fund. Today, it’s about 43%.

Washington ranks well below the national average for investment in K-12 education as a percentage of Gross State Product (the state’s output) at 3.11%.

Pie charts show percentage of state budget allocated to school funding declines from 52.4% to 43.1%

State Funding is Critical

The majority of school funding for K-12 school districts in Washington comes from the state. For Hockinson School District, state funding makes up 76% of the overall budget.

The state Legislature approved the 2025-27 biennial budget, and K-12 education does not appear to have fared as well as was hoped. More information will emerge in the weeks to come.

Pie chart shows 2024-25 Funding Sources wirh a $35.4 million budget.

HSD's Financial Health

Hockinson School District’s Financial Health Indicator (FHI) score for the 2023-24 school year is 2.95 on a scale of 0 to a perfect 4.0, which was down from 3.35 the year before. HSD is not in imminent danger of entering binding financial conditions and continues to hold an A+ credit rating from S&P Global.

Importance of Local EP&O Levy

EP&O levies fill the gap between state funding and the actual cost of running schools. About 1 in 7 staff positions in Hockinson School District are supported by levy funding through the end of 2026. Levy funding also supports student programs like extracurriculars, music, art, athletics, and more.

Maximizing Every Dollar: Grant Funding

In the 2024-25 school year, Hockinson School District has applied for and been awarded $1.4 million in grants and donations to support student programs and facility maintenance. Last school year, Hockinson School District applied for and was awarded $1.3 million in grants and donations.

HSD has successfully pursued grants and community donations and will continue to apply for these opportunities. However, donations and grants don’t represent consistent, long-term solutions to HSD’s financial challenges.

Staff Salaries & Benefits

About 87% of Hockinson School District’s budget is dedicated to staff salaries and benefits. School budgets are organized into categorical funds that can only be spent within its designated category, like transportation or Special Education.

A pie chart titled "2024-25 Expenditures" showing the breakdown of a school's budget. In the center, it reads: "Total Staff Portion: 87%." A large blue section labeled "Teaching Staff & Support – 61.5%" includes teachers, paraeducators, counselors, and health & safety staff. A lighter blue section labeled "Other Staff – 25.5%" includes technology, school administration & office staff, food service, and transportation staff. A dark blue section labeled "Supplies & Other – 13%" represents the non-staff portion of the budget.

Lower Financial Reserves

Reserves, also called Fund Balance, is akin to an emergency account for districts. Hockinson School District’s reserve is currently at the minimum level mandated by the school board (8%, or $2.8 million.) Maintaining a reserve is critical to preserving our credit rating and paying our staff on time.

Special Education Impacts

Special education is a basic education service, which means it should be state-funded. However, costs far exceed the amount of money the government provides. Because these costs are not fully covered by the state, this puts a strain on levy-funded student programs.
In 2024, special education accounts for roughly 13% of Hockinson School District expenditures.

Special education is a basic education service, which means it should be fully state-funded. However, costs far exceed the amount of money the state provides.

Inflation

Materials, Supplies & Operating Costs

Inflation in materials, supplies, and operating costs has had a significant impact on the HSD budget.

Illustration of light bulbs with text "average increase in electricity cost since 2018: 37%"

Illustration of school bus with text "Average increase in the cost of diesel fuel since 2018: 39%"

Insurance Costs are Rising

Inflation combined with state policies has had a significant impact on insurance. In the last five years, Hockinson School District’s annual insurance premium costs have risen by 212%.

In 2025-26, HSD's annual insurance premium costs are projected to be $592,022.

Line graph shows increase in insurance costs for the school district over time.

More Budget Information

Hockinson School District uploads budget documents for community members to find more budget information.

Budget Docs