Beaverton SD 48J proposes staged $10M‑a‑year reductions to avoid a ‘budget cliff’

Beaverton School District leaders told the board Aug. 26 they prefer a staged approach to closing a long-term structural deficit: modest, monitored reductions roughly equal to $10 million per year for the next three years rather than larger immediate cuts or a do‑nothing approach that would deplete reserves.

Superintendent Gustavo Balderas framed the issue bluntly during the retreat: "This is the number 1 thing that we're gonna need to tackle this year is this very topic," he said, urging clear direction from the board so staff can prepare a proposed budget.

The situation in brief

District finance staff showed the board a multi-year forecast based on the state school fund outlook and current enrollment projections. Beaverton's general fund for 2024–25 was shown at about $786,900,000; the state school fund represents roughly 87.1% of district general fund revenue. The district's reserves remain relatively large compared with nearby districts, but forecasts show a rising structural deficit if no action is taken: staff estimated a planned deficit of about $19.9 million for 2025–26 under current assumptions, and projected deficits growing further into the 2028–29 biennium that would exhaust reserves if left unaddressed.

Recommendation and rationale

Chief budget presenter Mike Scofield walked the board through three high‑level options: (1) roll forward current service levels (no reductions), (2) make immediate cuts large enough to eliminate the current deficit, or (3) implement smaller annual reductions with monitoring and course corrections. The district recommended option (3) — systematic reductions of about $10 million per year for three years, tied to ongoing review and a prioritized staffing-allocation review this fall — as a less disruptive approach that buys time to refine decisions.

Scofield explained the mechanics: the district would convene a "large SAM" staffing-allocation committee (see below) and propose prioritized reductions in non-classroom and program spending where possible, then monitor enrollment, state revenue forecasts and cost drivers such as PERS and health care. If the district took the recommended path, staff projected reserves would decline gradually from roughly $178 million in 2025–26 to just under $100 million by the end of the three‑year period, instead of being exhausted under a no‑action scenario.

Why board members asked for details

Board members sought specifics about where cuts might land, how they would affect classrooms and support services, and how the district would protect high‑need students. Members emphasized communication and called for a clear plan to notify staff, labor partners and the public about the timeline and opportunities for community input. Board members also raised human‑impact concerns and asked staff to seek ways to soften impacts using attrition and retraining where possible.

Staffing allocation (SAM) and next steps

District staff described SAM — the staffing allocation methodology that determines how teachers, counselors and other resources are assigned to schools — and said a smaller SAM group is meeting weekly to clean up current assignments for the fall. The district will reconvene a broader "large SAM" committee this fall, with representation from teaching staff, administrators and unions, to recommend priorities for reductions and to test changes against student need.

Other budget details noted during the retreat

- Student Investment Account (SIA) funding and high‑school success grants are largely spent on staffing; the district reported SIA funding is expected to decline in 2025–26 while high‑school success funds showed a small increase. Staff warned those grants' staffing levels are at risk if external grant awards fall. - The district's general‑fund spending is highly people‑dependent: about 90% of operating dollars go to licensed and school‑based classified staff.

What the board asked of staff

Board members asked staff to convene the large SAM committee, provide scenarios that identify likely program and staffing impacts of $10 million reductions, and prepare a public communication plan. The district also agreed to present a recommended reserve policy and to return with regular updates, noting state revenue forecasts and enrollment trends could change the size and timing of any adjustment.

Ending

The board did not vote on a specific cut package during the retreat. Instead, members signaled support for a deliberate, staged approach that aims to balance fiscal sustainability with minimizing disruption to students and staff. Staff will return with prioritized options and an outreach plan this fall and will incorporate community feedback into the superintendent's recommended budget in the spring.