Understanding MVWSD’s Budget

A school district’s budget is more than a financial document—it is a tool for directing resources toward the programs, people and services that help students succeed. Our responsibility is to provide a premium education for every student: strong instruction, clear expectations, schools in which each child is known.  

We have challenges. Based on our systems study, we know we need to build a better system that can deliver premium education to all students year after year. The achievement levels for all of our students are lower than before the pandemic. Additionally, the District is facing a structural budget deficit, meaning ongoing expenses are growing faster than ongoing revenue.

MVWSD is financially stable today because of conservative financial management over time and strong reserves—which gives us time to be strategic. MVWSD has sufficient one-time reserves (savings) to cover deficit spending in the short term, but using savings year after year to pay for ongoing expenses is not sustainable.

Addressing these challenges is about more than reducing expenditures until the budget balances. It is an opportunity to look carefully at how we use our resources to create the strongest possible educational system for students. 

The goal is to align our reduced resources with the District’s highest priorities, including strong instruction, student achievement and the services students need to succeed.

Revenue Growth Has Slowed Sharply

MVWSD is a Community Funded, or Basic Aid, school district, which means local property tax revenue is the District’s primary funding source.

The District has long anticipated that growth in assessed property values (AV) would slow. Over the past six years, MVWSD experienced average AV growth of 8.79%. This year, that growth is projected at just 1.92%.


(chart current as of publication date) 

The County Assessor has indicated that real estate revenue is unlikely to rebound in the next few years. This means the District cannot assume that the current slowdown will be temporary. Preparing now will help MVWSD adjust to a period of slower revenue growth while maintaining long-term financial stability.

Expenditures Continue to Rise

At the same time that revenue growth has slowed, the cost of providing educational programs and services continues to increase.

New state-mandated programs have added significant costs without dedicated funding. One example is the expansion of Transitional Kindergarten (TK), which requires additional staffing and resources.

Staffing costs also continue to rise. Employees—the teachers, administrators and support staff who provide instruction and services to students—represent approximately 83% of the District’s budget.

Together, slowing revenue growth and increasing expenditures have created a structural imbalance: the District is spending more each year than it receives in ongoing revenue.

MVWSD Has Already Reduced Ongoing Expenses

MVWSD reduced ongoing expenditures by approximately $7 million last year, primarily through reductions in District Office staffing (15% or the equivalent of 20 full-time DO positions) and custodial services. 

Those reductions helped, but they did not fully close the structural deficit. Additional ongoing changes are necessary to bring annual expenditures and revenues into alignment.

The District needs to reduce recurring expenses so that it does not have to rely on reserves (one-time money) each year to support ongoing costs, therefore draining the "bathtub of savings."

    

Reserves Provide Time to Make Thoughtful Changes

MVWSD’s reserves provide financial stability and allow the District to make thoughtful decisions rather than react to an immediate financial crisis. However, reserves are one-time funds.

Making reductions now would slow the rate at which the District spends down its savings while allowing time for revenues to catch up in future years. It also gives MVWSD the opportunity to consider changes strategically rather than waiting until its financial position requires more immediate reductions. If we do nothing, by year four (2029-30), reserves fall below the Board’s policy floor. Every year we wait narrows the range of choices available to us.


(chart current as of publication date) 

The District Is Planning $8–8.5 Million in Ongoing Reductions

At its Sept. 4 meeting, the Board of Trustees directed staff to return on Nov. 5 with recommendations for $8–8.5 million in ongoing reductions this year.

Because approximately 83% of the District’s budget is invested in people, reductions of this size cannot come only from supplies or other non-personnel expenses. The District will need to carefully examine staffing models, programs, services and how resources are organized across the school system.

Budget Decisions Will Be Made With Public Input

The Board is expected to review potential budget reductions and their impacts throughout the fall, continuing the conversation that started in September 2025.  

Staff will present recommendations to the Board on Nov. 5, providing an opportunity for the Board and community to understand the proposed changes and their potential impacts, and give input. Discussion will continue before final Board action planned for January.

Making thoughtful changes now will help slow the use of reserves, give revenues time to catch up with expenditures, and position MVWSD for long-term financial stability while keeping students and high-quality instruction at the center of the District’s work.