Forest Grove School District plans budget cuts amid declining enrollment and financial projections

The Forest Grove School District 15 is navigating a challenging financial landscape as it prepares its budget for the upcoming year. During the recent budget meeting held on May 8, 2025, district officials revealed a proposed general fund budget that maintains an 11.2% ending fund balance, slightly lower than previous years but consistent with recent trends aimed at ensuring long-term financial stability.

Key discussions highlighted a significant reduction of 17 full-time equivalent (FTE) positions compared to the prior year's budget, primarily affecting classified staff. This decision comes in response to a notable decline in student enrollment, which has prompted the district to adjust its class sizes and staffing levels. The district's target class sizes remain at 23.5 for K-4, 29 for grades 5-6, and 30 for grades 7-12, with current averages slightly below these targets.

To balance the budget, the district has implemented $1.8 million in reductions, with 54% of these cuts coming from district-level expenditures and 46% from classroom or building-level reductions. Notably, 71% of these reductions are sustainable, indicating a long-term strategy rather than temporary fixes.

The meeting also addressed the importance of maintaining a healthy fund balance, which is crucial for managing unexpected financial challenges. The district's current cash flow projects an ending fund balance of approximately $14.2 million, providing a buffer for operational expenses in case of funding disruptions.

Looking ahead, district officials acknowledged the need for careful planning and incremental changes to avoid drastic cuts in the future. They emphasized the importance of conservative budgeting practices and the potential impact of state funding on the district's financial health.

As the Forest Grove School District prepares for the next fiscal year, the focus remains on balancing educational quality with financial sustainability, ensuring that students continue to receive the support they need despite the ongoing challenges.