Molalla River SD 35 budget committee approves 2025–26 proposed budget, sets permanent tax rate

Molalla River School District 35's budget committee approved the district's proposed 2025'26 budget at a May meeting, adopting a plan district staff said preserves core instruction while responding to declining grant revenues and projected enrollment declines.

The budget message presented to the committee said the proposal is built on the state school fund outlook and local revenue projections, and it aims to end the fiscal year with a projected fund balance of $4,500,000, which the presentation said is $1,100,000 above the board's minimum threshold. The committee also approved a permanent tax rate of $4.70 per $1,000 of assessed value for the general fund and recorded approval for the debt service fund amount shown in the budget document.

Why this matters: district staff told the committee the 2025'26 plan is intended to maintain instructional integrity and essential student supports amid several headwinds, including a projected slight enrollment decrease, a reduced special-revenue grant outlook and the eventual expiration of bond offsets in 2027'28.

In its presentation, staff said the budget is "our best estimate at a particular point in time" and noted the broader funding context: a referenced state school fund proposal of $11,360,000,000 with roughly 49% of that biennial allocation anticipated in the first year, local revenues projected just over $12,100,000 (an increase of about $540,000 from the prior year), and special revenue grants expected to decline from $4,600,000 to $4,300,000 in the next biennium. Staff also described small adjustments to the capital projects and construction contingencies after a recent grant award and updated revenue projections.

Board procedure and vote: A board member read the resolution that put the budget on file in the superintendent's office and authorized the amounts shown for the fiscal year beginning July 1, 2025. The motion was seconded and approved in the meeting by raised-hand vote; the meeting record states the resolution passed (transcript: "unanimous resolution pass by a vote of 14 4, 0 against, no absentees").

What happens next: Staff asked committee members to submit follow-up questions by email and said some figures remain subject to change as final grant awards and federal appropriations are resolved. The committee also replaced several pages in the printed budget packet to reflect updated special revenue and capital-project figures, including an increased summer-learning grant line and minor shifts in capital allocations.

Board members asked for additional detail on class-size projections, summer-learning funding, and the timing of capital expenditures. Staff said class sizes are expected to rise slightly, remaining in the low-to-mid 20s per classroom on average, and that updated grant dollars had been reallocated across related special-revenue lines to provide modest relief.

The committee adjourned after approving the resolution and moving into the board's work session.