Forest Grove SD 15 projects multi‑million deficit, seeks public input on 2025‑26 budget

Dr. Suzanne West, superintendent of Forest Grove School District, said the district is developing its 2025‑26 budget amid declining student enrollment, rising personnel and program costs and an ongoing pattern of using district savings to cover operating costs.

West told viewers the governor has proposed technical adjustments to Oregon’s State School Fund that would raise the fund to $11,360,000,000 for the 2025‑27 biennium but said those changes would largely cover rising employer costs such as PERS, Paid Leave Oregon and unemployment rather than restore instructional investments. “Even if the governor's proposed funding adjustments are approved, they only cover the increased costs for PERS, Paid Leave Oregon, and unemployment,” West said.

The superintendent said the district has increased staffing in recent years to preserve small class sizes and student supports even as enrollment has fallen, a combination that reduces per‑pupil state revenue and adds pressure to the general fund. West described a pattern of deficit spending funded from district savings and warned of a limited runway: she said the district budgeted roughly $6.3 million this year to draw from savings and projects it will deplete its reserves “over the next 2 years if no adjustments are made.” She added the district is currently running a deficit of about $6.0 million per year.

West said federal COVID‑19 relief funds helped sustain operations and one‑time investments such as ventilation upgrades and learning recovery but that those funds were temporary, and the district must now plan using ongoing state allocations and local reserves. She asked the community for feedback on priorities and tradeoffs as staff develops the proposed 2025‑26 budget.

Eileen Cluth, director of finance and operations, joined West for the presentation; the district provided a slide showing general fund cash flow and the circled budget shortfall figure cited by West. The presentation included a QR code and a link on the district’s website for community input; West said the QR code and presentation will be available on the front page of the district website through March 31 and that staff will read and consider submitted feedback while drafting the proposed budget.

No formal budget actions, votes or board decisions were recorded in the presentation. Staff described the presentation as an informational update and the first step in a public engagement process for the 2025‑26 proposed budget.