Oregon district faces budget gaps amid unclear school funding allocations

The Budget Committee Meeting held by the Bend-La Pine Schools (BLS) School Board on April 8, 2025, focused on the uncertainties surrounding the state biennial budget and its implications for local education funding. Key discussions highlighted the challenges posed by unclear state school fund allocations and volatile federal funding.

The meeting opened with an acknowledgment that the state school fund allocation has not yet been passed, creating uncertainty for the district's budget planning. The committee noted that federal funding remains unpredictable, which could further impact K-12 education due to potential cuts in other areas of the state budget, particularly health and human services.

A significant portion of the budget discussion centered on the State School Fund (SSF), which constitutes 96% of the district's general fund operations revenue. The proposed budget for the fiscal year 2025-2026 estimates a statewide SSF allocation of $11.6 billion, translating to approximately $229 million for Bend-La Pine Schools. However, the Ways and Means Committee has only approved $11.4 billion, resulting in a $200 million gap that could lead to a $3 million shortfall for the district if not addressed.

The committee discussed two bills currently in the legislature that could potentially increase funding through high-cost disability grants and adjustments to special education funding caps. If these bills pass, they could help bridge the funding gap. However, if they fail, the district may need to implement budget reductions to balance its finances.

Additionally, the meeting addressed the Student Investment Account (SIA) grant, which is the largest state funding source for the district. The proposed budget includes an estimated $16.6 million in SIA funding, reflecting only a 1.7% increase year-over-year. This increase is insufficient to cover the rising personnel costs, which have increased by 9%. As a result, the district may need to reallocate funds or reduce appropriations for materials and services to maintain staffing levels.

The discussion also touched on the High School Success Grant, which is projected to decrease by 1% from the previous year, further complicating budgetary constraints as personnel costs continue to rise.

In conclusion, the Bend-La Pine Schools Budget Committee faces significant challenges in finalizing the budget for the upcoming fiscal year. The uncertainty surrounding state and federal funding, coupled with rising personnel costs, may necessitate difficult decisions regarding budget cuts and resource allocation. The committee will continue to monitor legislative developments and adjust its budgetary strategies accordingly.