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Dillingham City School District — Financial

What's happened recently in financial for Dillingham City School District.

Dillingham City School District entered a serious budget squeeze that deepened through the spring. The independent FY2025 audit presented to the board on January 19, 2026 found the general fund's flexible reserve had fallen from $1.7 million to about $385,000 over the year, and once committed amounts such as the health insurance reserve were set aside, the district had no unassigned cushion left for day-to-day operations. A follow-up presented March 17, 2026 made the picture even tighter, showing that after unpaid year-end bills were counted, the district actually started FY2026 about $474,000 in the hole.

That financial pressure soon translated into cuts to programs and staff. On March 30, 2026, the board voted unanimously to discontinue the district's preschool program starting in the 2026-27 school year, despite a parent speaking against the cut during public comment at the same meeting.

The most consequential step came as the 2026-27 budget was being built. The superintendent's April 27, 2026 report to the board shows the reduction target grew from an initial estimate of $821,000 to $1,287,796, and the list of positions eliminated or reduced district-wide includes the high school science and PE teaching positions, an elementary music/social-emotional-learning position, a literacy interventionist, an accounting technician, a director of maintenance, a cook's helper, an evening custodian, and a reduced (0.25 FTE) academic counselor position.

What happened

District's flexible reserve nearly wiped out, audit finds

The district's FY2025 audit found its flexible reserve fell from $1.7 million to about $385,000, leaving no unassigned cushion once committed funds were set aside, and after unpaid year-end bills were counted the district actually started FY2026 about $474,000 in the hole.

Board ends the district's preschool program

The board voted unanimously on March 30, 2026 to discontinue the district's preschool program starting in the 2026-27 school year, despite a parent speaking against the cut during public comment.

District cuts eight staff positions to close a $1.29 million budget gap

Building the 2026-27 budget, the district's reduction target grew from an initial estimate of $821,000 to $1,287,796, leading to eight staff positions eliminated or reduced district-wide.

Synthesized from 3 published, source-verified alerts about the district's budget for Dillingham City School District.

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