Oregon Education Committee reviews $5.5 billion budget with significant funding adjustments

Oregon's Joint Committee on Ways and Means has approved a significant budget for the 2025-2027 biennium, totaling $5.5 billion for the Department of Education, which includes 636 positions. This budget does not account for the $11.4 billion allocated to the state school fund.

Key investments in the budget include a $24.6 million increase to address mandated caseload growth in long-term care, youth corrections, and juvenile detention education programs. Additionally, $13 million is earmarked for enhancing literacy efforts statewide, while $6 million will support modernization projects for the state school fund distribution system and electronic grants management. The budget also allocates $1.6 million for permanent summer learning staff.

However, the budget reflects necessary reductions due to a projected decrease in available corporate activity tax resources, which are expected to total $3.16 billion for the biennium—down $195.3 million from the current service level budget. As a result, the fund for student success will not sustain the current service level budget. To address this, the committee has recommended several balancing actions, including reducing the fund for student success reserve from $200 million to $100 million and funding the student investment account at 50% of available revenues, amounting to $1.1 billion.

The committee also proposed a reduction of $23.8 million in high school success funding to correct a calculation error, ensuring the program is fully funded at $977 per student. Furthermore, $20 million will be allocated for student success grants to streamline the grant-making process, while $9 million will be cut from summer program grants, replaced by new summer learning program grants as outlined in House Bill 5047.

The education subcommittee has recommended that Senate Bill 5515 be amended and reported out for passage as amended, signaling a commitment to balancing the budget while aiming to mitigate impacts on academic success.