Albany schools face tighter budget as legislature, enrollment shape next year’s plan

Superintendent Andy Nyquist told the Greater Albany Public School District 8J Board of Directors that several state legislative actions and continued enrollment decline mean the district is preparing for difficult budget choices.

Nyquist said multiple education bills remain active in Salem, including measures tied to special-education reimbursement and a possible PERS rate-credit bill. He told the board the governor’s recommended budget leaves the district with an estimated $5 million shortfall under current assumptions.

The nut graf: the board’s budget work hinges on state revenue that may change after the May forecast and related legislative action. Staff told the board they prefer to delay permanent staffing reductions until those figures are clearer.

Nyquist and staff laid out the near-term variables that could change the district’s outlook: a May state revenue adjustment, a pending PERS-related House bill discussed by staff, and proposals to expand early-literacy and summer-school funding (identified in the meeting as HB 5047 and a separate bill for multi-year summer funding). Jane Noffsiger, who presented staffing and resource details, said the district is currently planning on a per-student funding rate (GRP) of 11.36 and is monitoring potential changes.

Enrollment and staffing context drove much of the discussion. Nyquist presented ADMr (average daily membership reporting) trends showing a decline from about 9,350 students pre-COVID to roughly 8,600 for 2024–25; the total headcount is roughly 8,750, staff said. He and board members described a post-ESSER period of “right sizing,” saying prior federal ESSER funds had allowed expansion that now must be sustained within general-fund limits.

Staff described personnel moves already made to improve competitiveness (raises toward the top of salary scales and employer-paid PERS pickup for some classifications) while warning benefit and insurance costs are rising. Noffsiger and other staff said projected cost increases include a roughly 6 percent step/scale cost in salaries and a projected 18 percent increase in liability insurance (about $200,000 for the district). Unemployment insurance assumptions were also raised in the planning numbers.

Board members repeatedly urged advocacy with state lawmakers. Board chair (Chairman Morse) and several directors pressed for more communication with legislators about funding and mandates; one director cited Oregon Constitution Article XI, section 15 on unfunded mandates during public remarks urging state-level action.

Ending: Nyquist recommended the board hold off on permanent personnel actions until the May 28 budget calendar step and until the state’s May revenue forecast and possible bill outcomes are clearer. Staff said they will continue to prepare reduction scenarios but aim to preserve the district’s capacity where possible.