Parkrose SD 3 budget proposes $70.9 million plan, $3 million shortfall to be covered by transfers and staffing cuts

Parkrose School District staff on a budget-committee meeting presented a proposed FY2025–26 operating budget of $70,874,187 and said the district faces a roughly $3 million shortfall that the proposal covers with one-time transfers, staffing reductions and other adjustments.

District presenter Michael said the district built the proposal on the governor’s proposed $11.36 billion state school fund for the 2025–27 biennium and that, as required by Oregon budget law, the proposed budget is balanced between total resources and requirements.

The district’s proposed total and the general fund: the full proposed budget is $70,874,187 and the general fund is $36,772,577, according to the presentation. The proposal assumes an increased property‑tax collection rate and uses $1,000,000 in transfers from other district funds along with staffing reductions and other changes to reach balance.

Why it matters: district leaders said multiple, compounding pressures are driving the shortfall. Parkrose has lost students — more than 300 over four years and about 40 since December 2024 — reducing state funding tied to enrollment. At the same time, special‑education costs, PERS (public employee retirement) rate increases and rising operating expenses outpace the revenue the district receives per student.

Key elements of the proposal

- Shortfall and balancing steps: presenters said the district cut roughly $3,000,000 across all funds. Those cuts include approximately $1,000,000 in transfers into the general fund (from funds such as Thompson…