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Board hears budget assumptions: staff flag enrollment decline, pension and insurance costs; superintendent says $12 million in reductions may be needed
Summary
District staff outlined baseline budget assumptions for 2025–26, citing an enrollment decline, pension rate increases, higher property and liability insurance, and uncertainty in the state school fund; superintendent said the district plans about $12 million in reductions over two years to balance its budget.
The board received an overview of the district’s budget assumptions for the 2025–26 fiscal year on March 11. Staff summarized revenue and cost drivers the district will use in building a draft budget, and the superintendent described the scale and timing of likely reductions.
A finance staff member summarized the packet memo and highlighted several assumptions: a fall average daily membership (ADMr) estimate of 11,025 students (a year‑over‑year decline), a state school fund planning assumption in the governor’s budget near $11.3 billion (the board referenced an $11.36 billion planning figure elsewhere in the meeting), and sensitivity to legislative action. Staff cautioned that the co‑chairs’ budget and legislative changes could shift the district’s allocation and said the district will re‑estimate its state school fund share when the co‑chairs release their recommendation.
On the expense side, the presentation noted a projected increase in pension contribution rates that staff said translates into roughly a 15% increase in those cost lines (although contribution-rate increases were described as 3 percentage points across employee tiers). The district also anticipates a 3.4% agreed increase in the monthly health insurance cap ($2,124 to $2,196 per month for covered employees) and reported an expected 20% increase in property and liability insurance costs tied to recent statewide and industry loss trends, including wildfire-related claims in Oregon.
Superintendent (name not specified in the record) told the board the district must plan for approximately $12,000,000 in budget reductions over the next two years because of declining enrollment and an “inadequate” state school fund projection. The superintendent said staff will work to minimize impacts to classrooms and prioritize instructional outcomes, and pledged additional updates on April 7 during the budget process.
Board members discussed how the assumptions translate into classroom outcomes and raised broader concerns about state-level decisions. Director Miles and others urged ongoing legislative advocacy to avoid unfunded mandates. The finance staff said the district will use standard methodology to update revenue assumptions when the co‑chairs’ budget is released.
Ending: Staff will return with more detailed budget work sessions in April and the formal budget in May; the board directed staff to continue scenario planning and community communication.
