As school budgets shrink, creative funding on the rise

Not too long ago, teachers in Duvall and Carnation spent their early-morning planning time in classrooms cozy with heat. These days, in a sign of lean budget times, the schools heat up later than usual.

"It's not nice and toasty when the teachers walk in," said Riverview School District superintendent Conrad Robertson. "But it's nice and toasty when the kids arrive."

Robertson shaved 13 percent off the district's utility bill last year by switching lights off early, turning heat on late and shutting computers down overnight.

In these tough fiscal times, school officials say, the job of superintendent requires that critical combination of common sense and creative thinking. Without it, budget cuts can reach into the sacred space of the classroom, shutting down key programs and sometimes threatening jobs.

As the state wrestles with a projected $2.4 billion budget shortfall, school districts across the region are bracing for cuts from the legislature. Individual districts could face shortfalls from $500,000 to $8 million and beyond, with some of the cuts linked to declining enrollment.

Some districts, such as Riverview, are nipping and tucking their expenses, trying to keep hold of a quality education. Others, such as the Northshore School District, are taking a more entrepreneurial approach, looking hard at business-school partnerships and exploring the possibility of allowing advertising on school grounds.

And then there are districts such as Bellevue looking to school foundations and other private donations to play an even bigger role in shoring up vital programs.

But for some districts, there is just no way to get around deep cuts in teaching staff and programs. Everett School District may be forced into layoffs for the first time since the 1970s. Federal Way, which could face a cut of about $8 million, is considering closing an elementary school, doing away with outdoor education and reducing hours for paraprofessionals. Seattle and Shoreline also say teacher layoffs are possible next fall.

"We're just running out of creative solutions," said Marla Miller, executive director of business, support and technology for the Edmonds School District.

After two years of cutting here, there and everywhere, Riverview's Robertson says his own inspiration is running dry. There is no fat left to trim. And the district stands to lose an additional $500,000 in state funding this year.

"We've cut all we can cut," Robertson said. "What's left are people and their livelihoods."

The losses come at the worst possible time, some school officials say. New federal standards set by the "No Child Left Behind" act require schools to perform at a higher level than ever.

"I think all of us are going to be sorely stretched to reach our mission," said Shoreline Superintendent of Schools James Welsh, who could face a $1 million loss in funding next year. "We're being asked to achieve more, and we accept that challenge, but we're being given less and that makes it very hard for us."

In an effort to raise revenue, the Shoreline district has started leasing a vacant elementary school to a private school, a move that school officials said will bring in $125,000 annually. It also has entered into a partnership with Marriott Hotels, allowing the company use of a district conference and catering center. Seventy-five percent of the profit from that deal goes toward enrichment programs for students.

Similarly, in the face of a possible $4 million budget cut, the Northshore School District is shifting its focus from damage control to "income generation."

This year Northshore partnered with grocery chain Albertsons in a pilot program that brings money back into the schools. Customers who use "Community Partners" cards are essentially making donations to the school of their choice.

Northshore Superintendent Karen Forys is also exploring the possibility of select advertising in the schools. Any shift in that direction is likely to tap into a national debate about where learning ends and consumer outreach begins.

Seattle severely restricted advertising in recent years. But Forys, and some Parent Teacher Student Association (PTSA) parents, said limited advertising could bring much-needed dollars to Northshore.

"I think we're going to have to be looking more at win-win proposals for business and schools," Forys said. "The past model was a philanthropic one, but in this climate particularly, business needs to see something that's in it for them."

Forys has also pushed the district's printing press to become self-supporting, contracting its services out to area nonprofits and other school districts in need.

And the district has entered into a kind of barter system with the city of Bothell. The city will send its cherry picker over to the school district, for example, while the school district will lend its locksmith to the city.

"We have this great underground network of trading services," said Forys.

For its part, the Bellevue School District is using its schools foundation as the safety net for a variety of programs. The group began in 1979 largely as an enrichment organization, but like other school foundations and PTSAs across the state, has grown into a major player on the school budget scene.

The group raised $800,000 last year, saving everything from arts immersion to the Discovery Science program and a variety of crucial classes in between.

"These guys have become a major funder for bread-and-butter issues," said Mike Riley, superintendent of Bellevue schools.

School foundations clearly give an unfair advantage to the more affluent districts, Riley said. But he described the state's entire funding formula as "a lousy, broken system," and one that would not get fixed overnight. In the meantime, Riley said, it's important to use all the tools he has at his disposal to keep his own district afloat.

One of those tools is the district's capital-projects fund. While the money can't be used for anything other than building, the interest that grows from the fund is legally available for a different use. Last year, the fund accumulated about $700,000 in interest, Riley said. The money went right back into the curriculum.

"I'm going to be as resourceful and practical as I can be," said Riley. "If there was a dollar in the street, I'd pick it up."

Seattle Times staff reporters J.J. Jensen and Tina Potterf contributed to this report. Cara Solomon: 206-464-2024