La Conner School Board members amended Superintendent Dave Cram’s 2025–26 goals to prioritize sustainable funding for the preschool and the Braves Hub after-school program, following weeks of uncertainty tied to delayed federal education funds.
The change came during the board’s July 28 meeting, when members formally adopted a $13.3 million budget for the new academic year and acknowledged the impact of what Board President Susie Deyo called “the tide that went in and out on federal funds.”
The U.S. Department of Education announced July 26 it would release $6.8 billion in previously frozen K–12 funds. However, for La Conner Schools, the July 1 freeze had already left significant consequences.
The abrupt loss of $650,000 — roughly 15% of the district’s revenue — forced local officials to notify families of staffing and program cuts in early July, just weeks before school was set to begin. Braves Hub, which serves 35 to 45 students daily at no cost, was among the programs slated for closure. Staff members in affected positions were offered reinstatement once funding was restored.
Districts across the country were caught off guard when the Department of Education paused scheduled July 1 disbursements, citing a review with no timeline. The delay triggered a federal lawsuit from 24 states, including Washington, and the District of Columbia, which claimed the move was unlawful.
Cram, who presented the district’s budget in a 30-minute report, said that although federal dollars are now flowing again, the disruption highlighted the need for more stable long-term planning. The new superintendent goal directs him to seek durable resources for programs that have historically relied on variable federal grant funding.
Despite a projected enrollment decline — from 463 to 450 students — the approved budget includes a modest increase in the district’s reserve fund from $500,000 to $525,853. That uptick supports a long-term goal of reaching a reserve balance equal to 10% of the annual budget, Cram said. The final reserve total could exceed projections due to conservative budgeting practices, he said.
“I don’t put anything there that I don’t think we can attain. There’s a good chance we could be higher than $500,000,” Cram said.
The district’s capital improvements fund is also projected to grow from $75,000 to $125,000, aided by expected grant support and planned solar energy upgrades on campus.
Board President Susie Deyo commended Cram for progress toward that 10% benchmark. Cram has led improvements in district finances since returning two years ago after prior roles in Anacortes, Lakewood, and Marysville. Under his leadership, the district moved out of binding conditions — state-imposed financial constraints — and established a six-figure reserve.
Board members J.J. Wilbur, John Agen, Kim Pedroza, and Deyo approved the budget. Alana Quintasket was absent due to participation in the Paddle to Elwha Canoe Journey. No public comments were made during the budget hearing that preceded the budget vote.
Other board actions:
- Approved annual board and superintendent goals set in June.
- Accepted a $10,000 donation from Albertsons-Safeway Stores to support athletic programs.
- Approved a Running Start program agreement with Bellingham Technical College, enabling juniors and seniors to earn dual high school and college credit tuition-free.
The board’s next meeting is scheduled for 5 p.m. Aug. 11 as a study session.
Bill Reynolds is a general assignment reporter who covers Town government, schools, and spot news.
