West Linn-Wilsonville board hears $15 million budget gap and options to consolidate one primary school

The West Linn-Wilsonville School District board on Monday received a staff presentation showing a draft plan to close a roughly $15 million operating shortfall for 2025–26 and detailed which primary-school consolidations would be possible without exceeding available building capacity.

Superintendent Dr. Ludwig opened the presentation by saying, “I am going to spend my report tonight talking about budget,” and told the board the district is working from the governor’s December proposal of $11,360,000,000 for K–12 in the next biennium while Ways and Means can change that amount.

The draft budget picture matters because enrollment and state funding have declined since the pandemic while some costs have jumped, staff said. The district is about 900 students below its pre‑COVID level and faces higher retirement (PERS) rates, insurance and utilities. Dr. Ludwig told the board the district is “looking next year at a $15,000,000 reduction,” and said a portion of that would be reductions at the district (non‑classroom) level while some would fall to classroom positions if revenue does not improve.

Why the shortfall exists

Staff framed the problem as a combination of falling enrollment and rising costs. Dr. Ludwig and district staff summarized the drivers the board heard repeatedly: an ongoing drop in students statewide (about 35,000 fewer K–12 students in Oregon since fall 2019), lower district enrollment that reduces per‑student state funding, and cost increases that outpace recent biennial funding growth. The presentation also noted changes in grant allocation methodologies and lingering effects from pandemic ESSER reserves that are drawing down.

The superintendent and finance staff flagged three items that materially affect the district’s outlook: the governor’s proposed biennium amount of $11,360,000,000 (a starting point that still requires legislative action), a proposed $127,000,000 early‑literacy allocation, and a steep increase in employer retirement rates that staff estimate will add roughly $6,000,000 of district cost next year.

Options for primary schools

Assistant Superintendent Dr. David Prior walked the board through detailed enrollment, capacity and facility analyses for the three small West Linn primary schools under discussion—Bolton, Cedar…