Westland-Wilsonville School District finance staff on Aug. 18 told the board the district projects roughly $144.1 million in revenue against about $151.4 million in expenditures for 2025–26, leaving an anticipated gap of about $7.2 million and an estimated ending fund balance of $6.8 million, or 4.74% of total revenue.
Chief business presenter Dr. Hughes (presenting the general fund financial report as of July 31) said the district’s revenue projection includes a small upward revision in the state school fund and that near-term savings from a change in employer PERS contribution rates will be partially offset by higher health-benefit costs.
Dr. Hughes said the district’s adopted budget assumed $68,055,000 from the state school fund but that an ODE statement updated the estimate to $68,000,591 — a small change the business office is monitoring. He also told the board that Senate Bill 849 temporarily reduces employer PERS contribution rates by 1.68 percentage points for the 2025–27 biennium, producing roughly $915,000 in general-fund savings for the district; those savings are partly offset by an estimated $329,000 increase in health-care benefit rates for 2025–26, yielding a net payroll-related reduction of approximately $585,000.
Board members asked about post‑2027 PERS projections and long-term impacts. Dr. Hughes and board members noted that the PERS buy-down is temporary and that rates are expected to rise again after the state’s PERS reserve is depleted, increasing district costs in later biennia. Dr. Hughes said the savings are meaningful in the short term but cautioned that the underlying structural gap remains because projected expenditures (driven largely by payroll inflation and vendor increases) are growing faster than projected revenues.
The business office estimated the district’s projected ending fund balance for 2026–27 is $6.8 million (4.74% of revenue) under current assumptions and that staff will provide more concrete numbers after year-end posting, grant closings and the auditor’s visit in October. Board members discussed best-practice reserves; Dr. Hughes cited GFOA guidance recommending roughly two months of operating expenditures and noted that Oregon School Boards Association commentary often points to a 5% guideline for school districts.
Board members asked staff to continue monthly financial updates and to include clear waterfalls showing projected revenue and expenditure paths into 2026–27 and beyond. Superintendent Dr. Ludwig and board members also discussed longer-term options, including joining other districts considering a PERS bond, and flagged capital and program choices that may require future reductions if the revenue/expenditure trends continue.