Forest Grove SD 15 budget committee warns of $1.8 million in reductions as enrollment falls

Forest Grove School District 15 officials told the budget committee on April 22 that the district expects to reduce about $1.8 million from the 2025–26 budget after projecting lower state revenue tied to a 137‑student shortfall from the adopted enrollment estimate.

The presentation by business staff summarized 10 years of finances and showed total resources up roughly 57% and budgeted expenditures up about 51% since 2015–16. The district’s ending fund balance grew from about $3.7 million to nearly $10 million over the period, the presenter said.

The discussion mattered because district leaders said they face a structural gap: expenses are outpacing revenues and the largest cost driver is staff. “Salaries and benefits are one of our largest cost drivers — it’s about 70% of our total expenditures,” said Eileen (Director of Finance), who led the budget presentation. She told the committee that salary costs rose from about $31 million to $45 million over the last decade and that retirement contribution rates (PERS/FERS) have increased substantially — cited as rising from roughly 10% to 22% of payroll.

Committee members and staff discussed the components of that increase: negotiated pay-scale changes, added full‑time equivalents (FTE), and higher benefits. The staff presentation said licensed pay scales rose about 30% and classified scales about 32% over the 10‑year window; the general‑fund FTE count increased by roughly 65 positions since 2015–16. The district also highlighted investments in student supports: more counselors, mental‑health staff and dean positions at elementary schools.

Staff outlined the district’s conservative planning approach: using the governor’s proposed State School Fund amount ($11.36 billion) as a planning principle while preparing contingency budgets that assume 100%, 75% and 50% of federal and grant funding in case state or federal dollars change. The superintendent said the district is preparing multiple scenarios so it will not be forced into mid‑year furloughs or abrupt cuts.

Budget committee members reviewed the timeline: the May 8 meeting will present the full budget book and the superintendent’s budget message, followed by up to two deliberation meetings before the budget goes to public hearing and adoption by the board and court.

Committee members asked for follow‑up data on FTE percentages, and staff committed to provide more detail at future meetings. The presentation closed with an appeal for committee input on priorities; staff said they will finalize reduction proposals and the full budget in the coming weeks.