Silver Falls budget committee approves $83.85 million budget, creates new capital and PERS reserves

The Silver Falls School District budget committee voted to approve the 2025–26 proposed budget at $83,854,144 and set the next year’s tax levies on May 20, advancing the plan to the full school board for adoption.

The committee’s approval includes a permanent tax levy rate and a separate levy of $4,681,222 earmarked to retire district bond debt. The motion carried by roll call; committee members present voted unanimously to approve the budget and related levy amounts.

The budget adopted by the committee builds a larger contingency and outright reserves after several years of deficit pressures. Administrators presented a projection of a $2.1 million ending fund balance for June 30, 2025, while the proposal also budgets “well over” $2.9 million in ending funds when contingency and unappropriated reserves are combined, and includes a $500,000 transfer to a new capital reserve fund. The district also plans a dedicated PERS reserve funded by a payroll charge projected at about $338,000 to help mitigate future PERS rate volatility.

Why this matters: Silver Falls faces declining enrollment, rising personnel costs and lingering deficits in enterprise programs. The committee’s action locks in a budget that prioritizes rebuilding reserves, funding targeted staffing in safety and reading intervention, and setting aside money for future capital work.

Key details - Budget approved: $83,854,144 (proposed 2025–26). - Tax levy: permanent rate set as part of the motion; separate bond levy of $4,681,222 to retire bond debt. - Reserves/transfers: $500,000 capital reserve transfer proposed; $338,000 projected deposit to a PERS reserve; contingency of approximately $1 million proposed for the year. - Projected ending fund balances: administration presented a 06/30/2025 projected ending fund balance of $2.1 million and described combined reserve/contingency positions above $3 million.

The committee’s approval moves the budget to the board of directors for a public hearing and formal adoption, which administration said is scheduled for the board’s June meeting. Superintendent Kim Kellison told the committee the budget is “aligned with the district’s strategic goals” and emphasized that rebuilding reserves takes multi-year work rather than a single budget cycle.

Discussion vs. action The committee held extensive discussion on contingencies, grant uncertainty and program-level adjustments before voting. The formal action taken was a recorded motion to approve the proposed budget and tax levies; the motion passed and will be forwarded to the board for adoption. No new appropriation changes were made in committee beyond the approved proposal.

Ending note Administrators said the budget is conservative on several uncertain revenue lines (federal grants and some state grants) and that they will monitor revenues and return to the board with adjustments if required. The next formal step is the board’s public hearing and adoption, currently scheduled for June.