School district discusses sustainable budget amid $1.2M deficit and rising costs

Newberg Public Schools is navigating a challenging financial landscape as it seeks to establish a sustainable budget for the upcoming year. During a recent Board Work Session and Budget Committee Training on March 18, 2025, district leaders outlined the significant hurdles and opportunities ahead.

The meeting highlighted a starting point of a $1.2 million deficit in the general fund, prompting the district to make tough decisions over the summer. These decisions have set the stage for a new financial pathway aimed at long-term sustainability. The session served as an informational platform for stakeholders to engage in the budgeting process, emphasizing collaboration and open communication.

On the revenue side, there are positive developments. A state committee recently recalculated the current service level, resulting in an 11.3% increase in the governor's budget. This adjustment is seen as a crucial boost for the district, providing a more accurate reflection of the funding needed to maintain operations.

However, the district faces significant challenges on the expense front. Public Employees Retirement System (PERS) costs are projected to rise by 8%, effectively doubling the financial burden. Additionally, increasing costs for transportation and utilities, along with the expiration of some bond-funded activities, are expected to impact the general fund.

Class size issues further complicate the budgetary landscape, with some classes being overstaffed while others, particularly in middle school, require additional staff to meet demand. Addressing these complexities will be essential as the district works to balance its budget and ensure effective educational delivery.

As Newberg Public Schools moves forward, the focus will remain on creating a sustainable financial model that supports both students and staff. The district is committed to transparency and collaboration, inviting community input as it navigates these financial challenges.