Pierce County Schools stands to lose about $1 million in state funding due to declining enrollment — but the system should be able to absorb the cuts.
Finance Director Melanie Helms gave that projection as board members got their first look at the proposed fiscal year 2027 budget. Helms presented a first draft of the proposed budget at the board’s monthly work session April 2.
Tentative numbers show revenue and expenses of about $43.8 million, down about $500,000 from this year’s $44.3 million spending plan.
Helms said the system’s enrollment declined from 3,647 in 2025 to 3,480 in 2026, a net loss of 167 students. Special education enrollment also declined by 20 to 523 from 2025-2026. State funding is calculated using a formula based on student enrollment numbers and additional funding is provided for special education students.
Helms projects the system will lose about $1,055,000 in state funding.
Meanwhile, she informed board members that the system’s share of employee health care coverage and retirement will be increasing, resulting in about $300,000 in additional expenses.
School superintendent Dara Bennett said the school system has been anticipating the loss of revenue based on enrollment numbers.
“We have not filled some positions that are open simply because the student numbers are not there,” she said. “No one has lost their job. We anticipate we will be able to cover the loss of revenue and the increase in expenses simply through attrition.”
Helms said she has also made cuts in other places where past budget history shows there is money left over at the end of each year and does not anticipate having to raise the millage rate.
“We think we can absorb the cuts by reverting to pre-COVID staffing levels,” Bennett said.
Bennett reported temporary federal relief money helped to fill budget gaps, but gradually went away after the COVID crisis passed.
The system also has cash reserves of about $18 million.
Helms stressed the numbers would change as state funding is approved by the General Assembly.
Additional budget updates will be provided at future board meetings.
Generally, the board sets its budget and millage in the summer.
