Enrollment dip leads to budget cuts

Published 1:30 am Friday, June 12, 2026

Oak Harbor Public Schools must cut about $3 million from next year’s budget as enrollment continues to fall, including a projected enrollment at Oak Harbor High School that would be the lowest in more than 20 years.

District officials outlined the financial challenges during recent board meetings, citing declining enrollment, rising operating costs and a recent 37% increase in insurance rates.

That estimate arose during a discussion about budget reductions at an Oak Harbor Public Schools board meeting on May 26. Enrollment declines district-wide, as well as rising operational costs and an already inadequate state funding model are financial challenges expected to spur another year of budget reductions for the district.

Right now, it faces a reduction of $3 million for the upcoming school year, Superintendent Michelle Kuss-Cybula confirmed at the meeting. A draft budget is expected to be made public on July 10, then adopted on Aug. 31, according to the district.

Enrollment declines are a recurring topic of discussion for the school district, as state funding is allocated per student and depends on whether they are full-time or part-time. Per a previous News-Times story, declines are projected until at least the 2030-31 school year.

“When your system continues to shrink, so too does all personnel, staff and budget, along with it,” Kuss-Cybula said.

Chief Financial Officer Amber Porter explained during a meeting on June 8 that the district is experiencing a decline of 404 full-time equivalent students over the course of three years, and added that an apportionment increase for the upcoming school year is expected to be minimal.

The district tends to “budget conservatively because of the possibility for these (enrollment) trends to continue,” Porter explained.

By far the most significant difference in the 2026-27 budget, compared to 2025-26, is a revenue increase of $2.2 million given the district is entering the second year of its new higher levy collection level, she added.

But unexpected costs are still emerging.

Kuss-Cybula, during the May 26 meeting, also pointed to a 37% insurance rate increase earlier that month from the Washington Schools Risk Management Pool. That increase costs the district an additional $500,000 in unexpected expenses, which could affect budgeting. She noted the increase came as a “surprise to many districts, including ours.”

On June 8, Porter described the increase as “unprecedented” but added that the district is better equipped to handle it than some others affected.