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Superintendent reports balanced budget in Q2; board warned of state, federal and bargaining uncertainties
Summary
Superintendent Castaneda told the Salem‑Keizer School District board that the district’s quarter‑2 financial forecast shows a balanced budget and an estimated ending fund balance rising to about $99 million, but she warned that state legislative outcomes, licensed bargaining and federal funding uncertainty could change projections.
Superintendent Castaneda presented the district’s quarter‑2 financial overview and told the board the district remains balanced but faces significant revenue and cost uncertainty going into budget season.
Castaneda said the district’s quarter‑1 ending fund balance was “right around $91,000,000” and that quarter‑2 projections show an expected ending fund balance of “about $99,000,000,” helped in part by higher interest revenue and slightly lower expenses. “We are actually spending the amount of money that we’re getting,” she said, describing the district’s budget as balanced following reductions made last year.
Castaneda reviewed several sources of uncertainty the board will consider while preparing the fiscal‑year 2025–26 budget: the Oregon Legislature’s long session, which could change state revenue and carries “close to 3,000 bills” she said; upcoming licensed‑staff bargaining starting in late February or early March; and federal funding timing that the superintendent called “unprecedented” in its uncertainty. She also noted personnel and benefit pressures, saying “there is a $20,000,000 annual increase in PERS” and that a 4% COLA was expected to be implemented next year.
Why it matters: The district’s ending fund balance provides a buffer while the board budgets amid uncertain state and federal funding and forthcoming collective‑bargaining results. The superintendent told trustees a healthy balance is important because funding changes or delays could force mid‑year adjustments.
Questions and follow‑up: Board members asked about assumptions in the forecast and the district’s vacancy‑savings approach; Castaneda reminded the board that vacancy savings reflect the district’s thousands of positions and unfilled roles. She also outlined the district’s plan to bring quarterly updates to the board during budget development.
Ending: Castaneda said the board will continue work through budget season and reiterated that many revenue and cost items remain unknown until legislative and bargaining outcomes are settled.
