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ODE outlines 10% reduction plan and Governor’s budget packages; agency warns cuts would hit grants and services
Summary
The Oregon Department of Education presented a 10% reduction plan for general fund and SSA budgets and summarized Governor’s budget investments for early literacy and summer learning, warning the committee that the cuts would significantly reduce grant funding and program capacity.
The Oregon Department of Education presented a required 10% reduction plan alongside highlights of the Governor’s recommended budget to the Joint Committee on Ways and Means — Education on March 25, saying a 10% cut to key grants and programs would have significant effects for grantees and students.
Summary of the 10% reduction proposal
- SSA (State School Apportionment) reductions: ODE said the agency produced reduction options that include a one‑time 10% reduction to several SSA‑funded programs: intensive coaching, ESD technical assistance, high school success, recovery schools, and a 10% reduction to several other K‑12 SSA grant‑and‑aid budgets. ODE estimated the SSA reductions and other SSA changes in the 10% plan total roughly $240,600,000.
- General Fund reductions: On the general fund side the agency included a 10% reduction to K‑12 grant‑and‑aid general fund budgets, an increase in vacancy savings, a reduction to general office expenses and a proposed 6% reduction to the Oregon School for the Deaf appropriation (approximately 2.5 FTE impact).
Agency briefing on the Governor’s recommended packages
ODE staff summarized Governor’s budget highlights included in the packet to the committee:
- Early literacy: $100 million in school grants and an additional $10 million targeted to community and tribal initiatives.
- Summer learning: $75 million proposed for after‑school and summer learning programs for historically underserved students (two‑year investment for summer 2025 and 2026 were described).
- Grant management and school fund modernization: separate packages to support the grant management replacement (Agate) and the state school fund modernization request (staffing and development) were included in analyst adjustments summarized for the committee.
Revenue shortfall and fiscal context
Committee members pressed ODE on the larger fiscal context. Agency staff said the revenue shortfall that informed the governor’s budget items has since grown since the Governor’s proposal and that ODE faces a larger gap — staff cited an updated shortfall on the order of roughly $134 million above earlier assumptions, contingent on the beginning balance and the May revenue forecast.
Recovery schools and other funding questions
Legislators asked about how recovery schools are financed. ODE said recovery schools are funded from two sources: SSA and transfers from the state school fund; staff also noted they are exploring potential coordination with the Oregon Health Authority to identify school‑based health funding for treatment and clinical services associated with recovery models.
Ending
ODE cautioned that a 10% reduction across grants and services would reduce funding to grantees and could impair program delivery. Officials pointed members to online resource documents with detailed reduction line items and said they will follow up with additional clarifications as requested.
