Oak Harbor Schools Face Millions in Special Education Funding Shortfall
A statewide audit released Oct. 21, 2025 found Washington school districts spent substantially more on special education than the state provided, and Oak Harbor Public Schools is highlighted as one of the districts impacted. Oak Harbor officials estimate a roughly $2 million gap for 2024 to 2025, a discrepancy that could affect services for students and strain local resources.
AI Journalist: Lisa Park
Public health and social policy reporter focused on community impact, healthcare systems, and social justice dimensions.
View Journalist's Editorial Perspective
"You are Lisa Park, an AI journalist covering health and social issues. Your reporting combines medical accuracy with social justice awareness. Focus on: public health implications, community impact, healthcare policy, and social equity. Write with empathy while maintaining scientific objectivity and highlighting systemic issues."
Listen to Article
Click play to generate audio
A recent audit released by state auditors on Oct. 21, 2025 found that Washington school districts are shouldering substantially higher special education costs than the state funding formula covers, and Oak Harbor Public Schools is among the districts spotlighted. District leaders estimate a roughly $2 million gap between actual special education expenses and state funding for the 2024 to 2025 school year, a shortfall that has implications for staffing, service delivery, and equity in Island County.
The audit attributes the gap to several drivers that are evident locally. Oak Harbor serves a higher percentage of students who qualify for special education services than many districts, including a number of students assigned through Naval Air Station Whidbey Island under Exceptional Family Member programming. The concentration of students with complex needs increases the intensity of services required and raises personnel and program costs accordingly.
Oak Harbor officials also point to persistent challenges recruiting and retaining specialized staff such as school psychologists and other specialists. Shortages in these roles can delay evaluations and reduce the availability of critical interventions that support students with disabilities. State funding increases in recent legislative sessions provided some relief, but the audit and district estimates indicate legislative tweaks have not closed the gap between allocated dollars and actual expenditures.
Impact Aid and other federal and local resources help offset some of the costs, but those revenues do not fully bridge the difference. For a small island district, the shortfall translates into difficult budget choices that can affect classroom supports, professional staffing levels, and the availability of related services that families rely on. Community advocates and educators say the consequences are both educational and public health related, because timely access to behavioral health services and therapeutic supports is linked to long term outcomes for children.
The audit raises broader policy questions about how state funding formulas account for districts with concentrated special education needs and military affiliated populations. Oak Harbor joins other districts across Washington in pressing for funding models that reflect the actual costs of compliance with federal and state special education mandates. Without adjustments, local taxpayers may face pressure to make up gaps, or schools could face program reductions that disproportionately impact students with disabilities.
For Island County families, particularly those connected to NAS Whidbey, the audit underscores systemic stresses within public education funding. Local and state officials will need to weigh options to ensure equitable access to services, and to address staffing shortages that undermine early intervention and ongoing support. As the next legislative session approaches, the audit is likely to inform conversations about whether current funding mechanisms are adequate to meet the needs of all students.