The Tigard‑Tualatin School District Board on June 9 approved a five‑year strategic financial plan update and adopted the district budget for 2025‑26 at $302,669,125, while also approving a fund‑balance modification that reduces the district’s reserves.

A staff presentation described updated forecasts, program investments and recent budget reductions. A district staff member who presented the financial plan said year‑to‑year investments were adjusted and that “the investments for the 5 year plan decreased by approximately $3,000,000 from last year” after a $10,700,000 budget reduction. The presenter cited updated enrollment assumptions (11,184 students), a general fund operating expense forecast near $180,000,000 and an estimated expenditure per pupil of approximately $16,000.

Board action included a required resolution to adopt a budget with a lower fund balance than Board policy DBDB specifies. The budget as adopted sets an operating contingency at 2% (about $3,580,000) and an unappropriated ending fund balance budgeted at $8,940,000 (5%). The sustainability (rainy‑day) reserve was eliminated for the 2025‑26 budget year; a staff presenter said the prior year had included a 1% sustainability reserve that is not in the adopted budget.

Board members repeatedly voiced concern about reductions and future uncertainty. Director Zershmeid said, “I feel a little sick to my stomach when I hear you say that our sustainability reserve is at 0,” and urged the board to revisit reserve policy. Director Weston pressed for re‑examining plan assumptions and the plan’s implied “floor” of services in light of deteriorating revenues. Director Miles summarized the emotional difficulty of the vote: “I hate this budget. I think we all hate this budget.”

Finance staff described the forecast assumptions used in the plan, including state school fund assumptions (referenced scenarios of $11.36 billion for current years and illustrative $12 billion and $13 billion figures in later biennia) and modeling that shows a potential deficit reemerging in 2028 tied largely to a potential 2 percentage‑point increase in employer PERS rates. The presenter said that change could increase related line items substantially in the 2027‑29 and 2029‑31 biennia.

The board adopted three related actions during the meeting: the strategic financial plan update, the DBDB fund balance modification resolution and the resolution adopting the budget, making appropriations and imposing taxes. The budget resolution item noted the district’s permanent rate of $4.9892 per $1,000 assessed value, the local option levy at $1.00 per $1,000, and a placeholder general obligation debt levy projected at $22,557,800; staff said a supplemental budget and a second tax certification will be brought to the board later this summer to finalize bond levies tied to bond issuance.

Staff and board indicated follow‑up planning: renegotiation with labor to manage costs, potential policy review of reserve targets, and continued public reporting on strategic investments and outcomes.