Hillsboro School District confronts $20M budget deficit amid declining enrollment

The Hillsboro School District's recent board meeting highlighted significant financial challenges as the district prepares for the upcoming budget cycle. With a projected deficit of approximately $20 million for the next school year, district officials are grappling with rising costs and declining enrollment, which could impact educational services for local students.

During the meeting, budget manager Scott and his team presented an overview of the district's financial outlook, revealing that while the governor's proposed budget indicates a 5.4% increase in revenue, expenditures are expected to rise at a much higher rate of 9.4%. This discrepancy raises concerns about the sustainability of the district's financial health moving forward.

Enrollment trends are particularly troubling, with the district anticipating a continued decline in student numbers over the next several years. The current projections estimate a drop from 18,326 students in 2024 to 17,922 by 2027. This decline is attributed to larger graduating classes compared to incoming kindergarteners, compounded by recent layoffs at major local employers like Intel and Nike, which may lead families to relocate.

In response to these challenges, the district is exploring various strategies to balance the budget, including potential staffing reductions and adjustments to non-personnel costs. The board emphasized the importance of addressing these financial issues proactively to ensure that educational quality is not compromised.

The meeting also touched on the impact of external funding sources, including federal programs and state grants, which are critical for maintaining services, especially in special education and early learning initiatives. However, anticipated cuts in integrated guidance funding could further strain resources.

As the district moves forward, officials plan to refine their budget proposals and engage with the community to discuss potential solutions. The next budget committee meeting is scheduled for April 22, with a final adoption hearing set for June 17. The board remains committed to transparency and collaboration as they navigate these complex financial challenges, aiming to secure a stable and effective educational environment for all students in Hillsboro.