These days, in the Bellevue parents' group chat or local community, questions like "Is the school district's deficit finally over?" come up quite often. Just last year, the atmosphere was quite heavy with discussions of layoffs, unpaid leave, and school consolidations.

So, I went back to review the school district's official announcements and local media reports. To sum it up, things have definitely improved, but it's still too early to say they are completely out of the woods.

First, let's clarify the starting point. The Bellevue School District entered into a binding agreement with the state education department (OSPI) on July 10, 2025, which means they are under financial recovery conditions.

This label is applied when reserves fall below the state's minimum threshold. The district explained that this is not about the state taking over operations but rather a structure where they manage a recovery plan together.

At the end of the 2024-25 school year, the reserves were reported to be negative $700,000. The superintendent explained that the federal COVID relief funds ran out faster than expected.

I also checked the figure mentioned in the title regarding the 170 layoffs. The spending reduction plan confirmed in March 2025 included plans to cut between 135 and 172 positions.

The district itself noted that these numbers are approximate. So, it's more accurate to say that the plan aimed to reduce up to about 170 positions rather than exactly 170 people being laid off.

Looking at the breakdown, there were 42 to 49 positions at the district headquarters, and 23.5 to 25.5 positions funded by federal ESSER funds. The largest cuts were in the school field, with 72 to 96 positions.

In the school sector, there were 14 assistant principal positions and 30 to 40 classroom teacher positions included. The ESSER side saw a reduction of 14.5 positions in the mental health support team, which honestly felt a bit painful.

The scale of the cuts was around $20 million. In a local broadcast interview around the start of the 2025 school year, Superintendent Aramaki stated that about 100 positions had been reduced.

Staff and school administrators also endured five days of unpaid leave each. They even stopped purchasing supplies, so the on-the-ground impact was likely greater than the numbers suggest.

So, where did the money come from? This is where the sale of the Somerset property comes into play.

The district approved a contract to sell 10.11 acres of surplus land behind Somerset to TriPoint Homes for $30 million on July 31, 2025. The down payment was $1.5 million, and the buyer plans to build a housing development.

Typically, the money from selling school property cannot be used for operational expenses. However, a state Senate bill (SB 5412) passed in January 2025 opened the door for districts in financial recovery to use one-time sale proceeds for their general fund.

However, this transaction is not finalized yet. The closing target is set for December 2026, with a final deadline of June 2027.

Recently, there have been reports of price adjustments. However, the district's official documents have not yet confirmed those figures, so it's safest to consider the $30 million contract as the basis for now.

There was also help from revenue. A state House bill (HB 2049) allows for an additional $500 per student to be collected through local levies starting in 2026.

According to district estimates, this will bring in $5 million for the 2025-26 school year and over $10 million annually thereafter. This has turned out to be a significant support.

The results are quite clear in the numbers. The projected reserves at the end of the year are expected to rise from $1.3 million in November 2025 to $9.5 million in February 2026, and up to $11.5 million by April.

As of June, the financial situation is reported to be $15.6 million better than the same time last year. Wow, a rebound like this in just a year is definitely impressive.

Then on August 13, 2026, the school board unanimously passed a $458.08 million general fund budget for the 2026-27 school year. They have stated that there will be no significant layoffs or increases in class sizes this school year.

However, there is a reason not to get too excited here. According to district policy, the necessary unallocated reserves should be about 5% of annual expenditures, which is around $21 million, but as of April, the unallocated reserves were only $3.2 million.

The superintendent also directly warned that a significant portion of the reserves came from one-time revenues. Selling land is a card that can only be played once.

Cash flow is still tight. In June, they approved another $10 million internal fund loan for payroll, although this is less than last year's $13 million.

For the 2027-28 school year, the district has already warned that additional cuts may be necessary unless the state addresses structural school budget issues. The student population is not significantly increasing from the current level of around 20,000.

From a parent's perspective, here's what can be done right now. Keep an eye on the monthly financial updates on the district's website District Budget page.

Check if the Somerset closing news comes up in the school board meeting agenda. And watch how the education budget is organized in the 2027 state legislative session.

Personally, I think this recovery process has gone quite well. Making painful cuts first and quickly linking available assets and legal changes is commendable in terms of execution.

However, calling the numbers filled by selling land a surplus feels a bit uncomfortable. I would refer to it as "in recovery" rather than "graduated" until the results of the 2027 state budget come out.