Central School District 13J budget committee approves $66.8 million budget, sets permanent tax rate

Central School District 13J's budget committee approved a $66,796,560 total budget for the 2025-26 fiscal year and voted to set the district's permanent tax rate and debt-service levy after a staff report on funding estimates, projected carryover and potential program reductions.

The committee's vote on the budget, taken after a detailed presentation on enrollment-driven revenue changes and a stress test of possible federal and state cuts, passed by recorded voice (motion passed; tally reported as 11 to 1). A second motion to set the permanent tax rate and levy for debt service was approved unanimously.

District staff said the proposed total budget reflects updated state school fund estimates, added federal grant carryovers and program reallocations. "We are presenting tonight a general fund budget of 49,381,642," said Cece, a district budget staff member, while walking the committee through the packet.

Why it matters: the budget committee's approval sends the package to the school board for final adoption. Staff emphasized that several key revenue lines remain estimates until state and federal calculations finalize in June and July; those changes could alter allocations but are not expected to exceed the 10% threshold that would require a new public budget hearing.

Key points from the presentation

- Revenue and estimates: Staff reported a revised state school fund estimate (discussed in the presentation as moving from an earlier figure to $11.36 billion at the state level) and said final state calculations from the Oregon Department of Education are expected in early July. The district will monitor enrollment counts through June, which affect per-student allocations.

- Federal and state grants: The district has Title I allocations (reported as about $885,000 this past year and noted as $30,000 lower than the prior year), IDEA (special education) roughly $475,360, Title III roughly $68,000 (with carryover bringing it closer to $80,000), and Title IVa roughly $71,000. Staff said Title II, Title III and Title IV could be uncertain in future federal budgets and warned that some federal proposals discussed in Washington would zero out those titles in the 2026-27 federal budget scenario.

- Carryover and timing: The staff presentation explained that state grant carryover rules have changed after an ODE audit and that district state grants tied to the 2023-25 biennium must be spent by June 30 for this cycle. Federal grants generally carry through the federal fiscal year and may be carried into the next year if unspent, but the district must show actual expenditures under its cash-basis accounting rules.

- Expense changes and program impacts: To balance the budget amid lower enrollment and uncertain grant funding, staff described a range of reductions and reallocations: roughly 11 licensed FTE eliminated, 3 administrative FTE reductions and a mix of classified position reductions and hours reductions (reflected in a list the presenter called a total of about 25 positions or position-hours affected across categories). Specific program changes noted included freezing most travel, cutting building-level "team engagement" funds, temporarily eliminating a line for library book purchases from the general fund (staff noted some books will still be acquired via grants and student-activity accounts), reductions in outside tuition programs for specialized placements (the presenter described this as a risky placeholder removal because a single placement can cost up to six figures), and elimination of graduation coach positions at the high school. Staff said some supports (including school resource officers funded through a partnership with Independence police) remain in place where buildings prioritized them.

- Curriculum and capital items: The committee heard that the district will adopt math curriculum in stages, paying year-by-year instead of prepaying a multi-year contract because of tight cash. Textbook line items were increased in the general fund for the current proposal (textbook line showing about $135,500 in the packet, up from $65,500 previously); professional development related to curriculum is budgeted in Title II and therefore depends on federal allocations.

- Contingency planning: Staff presented a stress test illustrating further cuts the district might consider if federal or state revenues decline sharply next year. Options listed for worst-case scenarios included negotiating reductions in student days (subject to collective bargaining), cutting athletics or reducing coaching stipends, reducing or eliminating elective programs and co-curricular activities, scaling back mental-health contracts, and, as a more significant step, eliminating an assistant principal position at the elementary level. Staff repeatedly framed these as last-resort items that would be discussed with unions, principals, families and other stakeholders before any final decisions.

Votes at a glance

- Budget adoption (motion): "I move that the Central School District 13 J budget committee approve the budget for the 25-26 fiscal year in the amount of $66,796,560." Moved and seconded; outcome: approved (motion passed; committee reported 11 to 1). Note: the committee's action approves the budget total and sends the schedules to the board for appropriation and final adoption.

- Taxation and levy (motion): The committee approved the permanent tax rate and debt-service levy for fiscal 2025-26, including a permanent tax rate of $4.8834 per $1,000 of assessed value and a debt-service levy in the amount of $3,975,051 to support general obligation bond payments (series 2013 refunding and 2015 refunding). Motion seconded and approved unanimously.

What the district said about next steps

Staff told the committee the school board will hold a public budget hearing and adopt the budget at its June 23 meeting, and that the district will provide quarterly budget updates. Staff emphasized they will return to the committee if projected changes to the beginning fund balance exceed thresholds requiring re-noticing or if significant state/federal recalculations materially change totals. Presenters also said they would seek community input if deeper prioritization decisions are required.

Quotes

"We are presenting tonight a general fund budget of 49,381,642," Cece, a district budget staff member, told the committee during the presentation.

"If you have concerns federally, please reach out to your federal representatives and senators," Cece said, describing federal budget uncertainty that could affect Title II, Title III and Title IV funding in a future federal fiscal scenario.

Ending

The committee voted to approve the budget and the tax/levy motions and adjourned after the presentation and questions. The board's adoption hearing is scheduled for the June 23 meeting; staff said they will report any material changes and provide regular updates to the committee and the public.