On June 25th, Tacoma Public Schools board approved a 2026-2027 budget that closes a $10 million deficit by leaving vacant staff positions unfilled.

The teachers union says the move will mean larger class sizes and more split-grade classrooms when school resumes this fall.

No teachers or staff will be laid off. But positions that opened through departures during the 2025-2026 school year will stay empty.

"What that does is really put a crunch at the schools with high class sizes and an increasing number of split classes, classes where teachers are teaching two grade levels at the same time," Tacoma teachers union president Angel Morton told The News Tribune.

The board's vote, required by state law before the fiscal year begins Tuesday, July 1, also sets aside $9 million to begin rebuilding reserves the district nearly drained last year while scrambling to balance a $30 million shortfall.

The $10 million gap is the smallest TPS has faced in three years. The district confronted a $40 million deficit two years ago and $30 million last year. District leaders say the trend does not signal improving finances.

Chief Financial Officer Rosalind Medina attributed the ongoing pressure to insufficient state funding and rising costs. She said the district's insurance cost increases alone far outpaced what the state provided this year.

The district is budgeting $10.7 million for insurance in 2026-2027, about 1.7% of the general fund. Salaries and benefits account for roughly 82% of general fund spending.

Medina said the district is less at risk this year of triggering "binding conditions," the state oversight process that kicks in when a district cannot produce a balanced budget. Tacoma is not among the seven Washington districts currently under that designation, according to the Office of Superintendent of Public Instruction.

But the margin is thin. Medina warned that the district is so close to zero that a single unexpected expense could push it into state oversight.

Morton said the union plans to lobby state legislators for more education funding and rally support for a proposed millionaire's tax. The new budget takes effect Tuesday, July 1.