School District Faces Budget Crisis Amid Declining Enrollment and Rising Staffing Costs

The Forest Grove School District 15 is facing significant challenges as it prepares for the upcoming budget cycle, primarily due to declining student enrollment and increasing staffing levels. During the recent school board meeting on January 29, 2025, district officials highlighted a troubling trend: since the 2015-16 school year, enrollment has steadily decreased, exacerbated by the pandemic, while the number of full-time equivalent (FTE) staff has continued to rise. This imbalance raises concerns about the district's financial sustainability.

The district's leadership emphasized the urgent need to "right size" staffing levels in response to the ongoing enrollment decline. Without corrective measures, the district risks entering a state of deficit spending within the next few years. The current ratio of students to staff has shifted dramatically, from over 10 students per FTE in 2015 to just over 7 students per FTE today, indicating a growing disparity that cannot be maintained.

In addition to internal challenges, the district is grappling with external pressures related to state funding. Officials reported that many legislators are struggling to understand the need for increased funding, despite the district's efforts to explain the financial implications of declining enrollment and rising operational costs. The conversation around special education funding caps remains particularly contentious, with multiple legislative proposals lacking consensus on reimbursement levels.

The board also discussed recent adjustments proposed by the governor to the state school funding formula, which aim to address inaccuracies in funding calculations. However, these adjustments are seen as insufficient to cover the district's needs, especially given the increased demands placed on schools today compared to when the funding model was originally established.

As the district navigates these complex issues, officials are committed to advocating for necessary funding to maintain educational services and support for students. The board's discussions underscore the critical intersection of enrollment trends, staffing levels, and state funding, which will shape the district's financial future and its ability to serve the community effectively.