Salem School District outlines budget impacts from enrollment growth and rising energy costs

Salem City Council's recent meeting on May 27, 2025, revealed significant developments in the city's budget and educational services, highlighting both challenges and growth opportunities for the community.

A key focus of the meeting was the school district's budget, which is set to increase due to a rise in student enrollment. The district reported an enrollment of 3,958 students, marking a 2% increase from previous years. This growth is particularly notable among multilingual and special education students, with 768 multilingual students and 942 in special education programs. The increase in student numbers is expected to boost state funding, with an estimated $1.3 million increase in Chapter 70 funding.

However, the budget discussions also underscored rising expenses. The district has added six new positions to meet the needs of students, particularly in special education. Additionally, the costs of utilities are projected to rise sharply, with electricity rates expected to increase by 30% next year. This is attributed to the expiration of a favorable energy contract and the aging infrastructure of the high school.

Transportation costs are another area of concern. While the district plans to reduce the number of buses from 13 to 12 as a cost-saving measure, the overall transportation budget is expected to rise due to an increase in families experiencing homelessness. The district anticipates spending over $1.3 million on homeless transportation, significantly higher than the previous year's budget of $800,000, as state funding for this area is set to end.

The meeting highlighted the delicate balance the city must maintain between expanding educational services to accommodate a growing student population and managing the rising costs associated with these services. As Salem continues to navigate these challenges, the council's decisions will play a crucial role in shaping the future of education and community support in the city.