Parkrose SD 3 leaders warn of budget uncertainty as state and federal funding remain unresolved

Superintendent Lopes told the Parkrose School District Board of Education on Monday that the district is preparing contingency plans after federal and state funding sources remained uncertain, putting programs and staffing at risk.

Lopes said the district has received confirmation for Title I and IDEA funding but has not yet received Title II, Title III and Title IV disbursements from the U.S. Department of Education. "It is a real thing that the state has not been allocated those dollars from the federal government," Lopes said, identifying roughly $68,000 in Title III and $135,000 in Title II as examples of the grants that support English-language learner services and professional development.

The superintendent told the board that the Oregon revenue forecast released May 14 showed a roughly $700 million shortfall from the prior forecast, reducing legislative flexibility and increasing pressure on the state school fund. Lopes said the district wrote to the state Ways and Means Committee to stress the local impact. "Anything below $11,410,000,000 is going to really significantly impact us," Lopes said, referring to the budget figure the legislature was considering.

Why it matters: Lopes said the combination of delayed federal grant disbursements, a lower state revenue forecast and pending federal proposals — including Medicaid changes and a proposed federal voucher/tax-credit scheme — could reduce available funding for Parkrose programs, increase class sizes, and force continued staff reductions or reduced school days. "The 3 days total represent about 4 full-time equivalent staff members," Lopes said of recent schedule cuts, adding that restoring school days depends on the final state budget and PERS rate changes.

Details and debate: Board members and staff discussed possible downstream effects. Lopes said special-education funding remains a pressing concern: raising the special-education cap to 11% would require roughly $100 million statewide, and reimbursement for high-cost disabilities has fallen from about $0.39 to $0.32 on the dollar in two years. The superintendent and board also flagged a pending federal bill provision that would allow dollar-for-dollar tax credits to subsidize private school tuition for families earning up to 300% of median income; Lopes characterized the provision as potentially "devastating" for districts like Parkrose if passed without accountability measures.

Board Member Sonia asked how Medicaid reductions would affect district services; Lopes and board members said the most immediate risk is that children who lose Medicaid eligibility could affect the district's Community Eligibility Provision (CEP) reimbursement and access to school-based health services. "If those kids are not showing up on TANF and SNAP, then our numbers could go down and we could risk losing CEP," Lopes said.

What the district will do next: Lopes said staff are developing contingency plans and would keep the board informed, including emailing board members when relevant hearings or action opportunities arise. The district also plans to continue advocacy with local legislators, including Representative Lee Tran. Lopes said she and other administrators had sent letters to the legislature describing cuts already made and the need for additional state funding.

Ending: Board members expressed concern about the likely local effects and committed to continued advocacy. Ben, a board member who spoke during the discussion, called the potential Medicaid changes and voucher proposals "devastating" for families in Parkrose and urged continued action.