The Mercer Island School District (MISD) held a budget webinar on Jan. 9, addressing pressing concerns, including a projected $3 million deficit, enrollment trends, and recent incidents at Islander Middle School (IMS).

Superintendent Dr. Fred Rundle and Executive Finance and Operations Director Matt Sullivan led the discussion, emphasizing proactive measures and the importance of community advocacy. Below is a summary of the webinar.

IMS vandalism

Superintendent Rundle opened the budget webinar by condemning the recent vandalism incident at Islander Middle School (IMS), where swastikas were found on the school buildings and in the bathrooms. He called the act “unacceptable” and outlined steps to prevent similar incidents, including increased supervision on school grounds and educational partnerships with the Holocaust Center for Humanity and StandWithUs. Additionally, 15 IMS students have joined a new group focused on combating hate.

Recognition

The IMS orchestra’s 7th- and 8th-graders have been chosen as a Concert Hour Exemplary Honor Group for the 2025 National Association for Music Education’s (NAfME) All-NW Conference, to be held in Spokane from Feb. 13-16. This is an outstanding achievement shared by only two middle school orchestras in the Northwest.

Financial crisis

MISD faces a $3 million shortfall for the 2025-2026 school year in special education, transportation, materials, supplies, and operating costs. Key contributors include:

• State funding decline: Public education funding has dropped from 50% of state revenue in 2018 to 43% today.

• Levy cap limitations: Post-McCleary legislation caps MISD’s local levy collections at $12 million annually, resulting in a $5.8 million annual revenue gap.

• Rising costs: Insurance premiums have increased 137%, and expenses for programs like athletics and clubs rely heavily on levy funding.

• MISD has avoided deficit spending for two and a half years through strategic budgeting, including reducing staff, consolidating positions, and limiting out-of-state travel.

Enrollment trends

Despite declining birth rates, MISD exceeded enrollment projections by two demographers for the 2024-2025 school year, with 3,900 students enrolled. Increased kindergarten numbers and transitions from private to public schools for grades 5, 6, and 9 are positive signs. Superintendent Rundle stressed the importance of retaining and attracting students to sustain funding.

Proposed solutions

• Boost enrollment: Efforts include attracting and retaining students through outreach and choice transfers. Rundle will make a recommendation to the board regarding open enrollment next week, stating that the biggest challenge is encouraging local families to choose MISD.

• Increased fees: Proposals include raising student fees for athletics, clubs, extracurricular activities, Associate Student Body programs, and credit card transactions.

• Cut costs: The district plans to reduce staff and operational expenses by consolidating or eliminating positions while avoiding impacts on core classrooms as much as possible.

• Advocate for state funding: MISD will continue legislative efforts to secure additional funding, particularly for special education, transportation, materials, supplies, and operating costs.

Community Q&A

• Insurance costs: Premiums have increased from $478,000 in 2018 to $1.1 million, despite MISD’s clean claim history.

• Teacher salaries: MISD pays $147,000 per teacher, while the state provides $123,000. The state funds 80% of teacher costs and 65% of other staff salaries, with the levy covering the rest.

• Administrative costs: MISD has reduced admin roles, including associate principals at elementary schools and a middle and high school admin position.

• Part-time enrollment: MISD receives full funding for students enrolled in six periods, even if they take one private class. If students leave, funding and related teacher positions are reduced.

• Legally challenge funding deficit: There are rumors of a “McCleary 2” lawsuit for education funding, but nothing has been confirmed.

• Levy cap advocacy: Bills will be introduced to raise or remove levy caps. However, levy must be renewed by voters.

• Private school transfer: Parents cite class size, academic rigor, and DEI as reasons for choosing private schools.

Looking ahead

Rundle and PTA vice president Mar Brettmann urged community members to support school funding by signing letters to legislators and participating in PTA advocacy efforts.

Watch the webinar below:

Eastside Town Hall: Tackling public school funding shortfalls

The Eastside Town Hall on the school funding crisis, hosted by the PTAs of Bellevue, Mercer Island, Issaquah, Lake Washington, and Renton, drew an audience of around 1,000 parents, teachers, and students. Attendees included state legislators, State Superintendent Chris Reykdal, Mercer Island School District Superintendent Dr. Fred Rundle, superintendents from Bellevue, Issaquah, and Lake Washington school districts and school board directors. The event’s primary goal was to urge legislators to address the funding shortfall, attributed to Washington’s regressive tax system, by increasing taxes.

David Knight, an associate professor from the University of Washington and Director of the Center for the Study of Teaching and Policy, gave a presentation titled “Redesigning Washington’s Public School Finance System to Be More Equitable and Efficient.” He shared data indicating that a $1,000 increase in per-pupil spending leads to a 0.032% standard deviation increase in test scores and a 2.8% rise in college enrollment per pupil.

Several critical issues were left unaddressed during the town hall, including why per-student spending has doubled over the past decade, how these funds are allocated, and where the state allocates $11,000 per pupil for students who withdraw from public schools and enroll in private schools. Questions about the allocation of marijuana and lottery tax revenue dedicated to public education and the reduction in the state budget for education from 50% to 43% also did not come up. Superintendent Chris Reykdal and teachers’ union members from Renton and Bellevue called for higher pay but did not provide any data on student performance. A Sammamish High School teacher expressed frustration over insufficient funding for classroom materials, while the union failed to address why many teachers, particularly in special education, are leaving the profession. (Source: www.washingtonpolicy.org)

Jennifer McClellan, an 11-year employee of the Mercer Island School District, praised the district’s exceptional special education programs, which greatly benefited her son, now in his 20s. State legislators expressed unanimous support for reforming the regressive tax system and pledged to introduce bills in the upcoming legislative session to increase tax revenue to fully fund public education. Parents had the opportunity to advocate for their students and ask questions, though time for Q&A was limited at the end of the event.

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Linnea Augustine is a Mercer Island resident and volunteer contributor to the Mercer Island Reporter. Email editor@mi-reporter.com.

Courtesy of MISD