Is it True that Everybody Knows “We’re Broke”?

This query comes from Danny Westneat of The Seattle Times. Yes, Danny, everyone who tracks Seattle Schools sure knows it.

I think the better, more obvious question is "How did we get here?"

The amount of hand-wringing (and some finger pointing) from SPS leadership over the years has not helped. What really hasn't helped are boards that have approved these "balanced" budgets and contracts.

And boy I wish Superintendent Shuldiner has not used that phrase - "we're broke" - because it makes a simple statement of a complex situation. (But he also said this: “It’s the sword of Damocles hanging over all of us." That's old school Greek storytelling right there.)

From Westneat:

Broke means you can’t pay your bills. Insolvent means your debts outpace your assets and income to the point of fiscal crisis. Public schools don’t really go out of business, so it would likely mean the state stepping in to force some spending cuts.

Westneat, along with many of the commenters to this column, had this thought:

When I say “generously supported,” here’s what I mean. 

Just last year Seattle taxpayers approved a three-year, $747 million school operating levy; it was 16% larger than the one before. We also said yes to a $1.8 billion capital levy that was 28% larger than its predecessor levy. 

That’s not all. In November, Seattle voters also approved a $1.3 billion families and education levy to support preschool and education programs that was a 110% boost over the previous levy. 

It’s not like this stuff is ancient history. Local taxpayers just said “yes” to a combined $3.8 billion in taxing authority for education, all raised within the city limits of Seattle.

The commenters also said asked how is it possible to spend that much and not see better results.

Westneat breaks down the spending:

In 2019, the last year before the pandemic, Seattle Schools spent $914 million on 53,369 students — $17,000 per student, the district says. In the 2025-26 school year, it spent $1.35 billion on 49,940 enrollment — $27,000 per student. So the budget is up 48%, while the per-pupil spending is up 58%. People cite rising costs and it’s true, but both these figures are well beyond inflation (which was about 31% in that same period.) 

Teacher pay has soared, yet so has spending on administration. Shuldiner outlined how the main pay band of teachers now make about $142,000 per year. There was a time when Seattle teachers were underpaid, but not anymore.
For the upcoming year, the district did finally trim actual spending — but by only $14 million, or 1% of the schools’ now $1.34 billion operating budget. 

Cutting back 1% is not exactly getting serious about going broke. It’s unusual to see any local government reduce its real spending levels, even slightly, so perhaps that’s Shuldiner’s rhetoric turning an ocean liner. But it’s hardly urgent action in the face of insolvency.

To note - SPS is not the only urban district in the U.S. to have an operational levy. Cleveland and Cincinnati have them. So do Minneapolis and St. Paul.

At the end of the day:

Again, just last year Seattleites approved $3.8 billion in taxes for schools. Yet already the message is: We’re broke. 

There’s got to be a deal made with voters. A compact that when we approve new taxes, there’s a cooling-off period — where they have to make do with what they were just given. I’d pay extra for that.

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I will have a separate post on what the teachers' contract looks like but I suspect Westneat won't like it. I'm surprised, too.