Lake Oswego legal budget committee approves resolution forwarding proposed 2025–26 budget to school board

The Lake Oswego School District 7J legal budget committee approved a resolution forwarding the district's proposed 2025—26 budget to the full school board after a detailed review of revenue forecasts, staffing adjustments and capital plans.

The decision lets the school board consider final adoption while leaving the committee's formal work complete. Chair Ayers called the meeting to order and committee members discussed the general fund, other special funds, grants, debt service and capital projects before voting to approve the resolution.

Committee discussion emphasized several revenue and cost items that shaped the proposal. Dr. Shealy highlighted a weaker state revenue forecast, saying the June economic and revenue forecast showed the net general fund and related resources down by $798 million from a March forecast and that corporate activity tax projections had fallen by about $44.4 million. "We need to continue to advocate for the 11.4," Dr. Shealy said, referring to the district's advocacy goal for supplemental state funding. She also noted the state PERS rate relief of 1.68 percentage points, which she said equates to about $900,000 for the district each year for two years, but warned the relief would end and rates could rise again.

On staffing, Stewart Ketzler presented details of planned personnel adjustments, saying the general fund proposal includes reductions totaling 53 full-time equivalent positions in classified staff and described how attrition, resignations and retirements are being tracked and will affect final FTE counts. Ketzler said voluntary resignations and retirements that continue through the summer can reduce the need for formal reductions-in-force and that staffing numbers will remain somewhat fluid into the start of the school year.

The committee reviewed special and enterprise funds. Ketzler and Margaret (presenter) summarized that the community contributions (foundation) donation amount in the draft budget had been held at a higher aspirational figure but that the foundation now expects to model the contribution at about $1.1 million. The materials still show a larger appropriation authority; Ketzler said the district would update the financial model after the foundation board meets on June 3 and that lowering the assumed contribution would reduce related FTE and salary assumptions in the community contributions fund.

Grant funds were discussed as an area of reduction. Ketzler said the Student Investment Account (SIA) is budgeted at about $6.5 million for 2025—26 (down from a larger recent total) and that federal IDEA funding is budgeted near $950,000, a decrease from prior years when IDEA allocations exceeded $1.2 million. He said these grant changes account for a large portion of the drop in grant-funded resources from about $11.5 million to roughly $10.7 million in proposed resources and that total grant-related FTE would fall from about 77.95 to 72.78 in the 2025—26 proposal.

On capital and debt, committee members reviewed the capital projects fund appropriation authority of about $58.6 million for facility acquisition and construction, noting the Lake Oswego Bridge (middle school) project and other site work as primary drivers. Ketzler and Margaret reviewed debt service schedules and said the district realized just over $29 million in bond proceeds on a recent sale (par value roughly $27.3 million) and that the proposed resolution includes a $30,350,000 lump-sum levy for general obligation debt service. They also described PERS-related debt service tied to pension side accounts and the assumptions used for the budget.

Other highlights: Margaret reviewed student activity funds (status quo scaffolding for student-directed fundraising), the community services fund and pool/facilities considerations (including the likely closure of the district pool pending the opening of the Lorac Competition pool), the enterprise fund created for self-insurance seeded with $250,000, and the Lake Grove (Lehi) Swim Park accounting including a 2023—24 loan of $580,000 from the district with a 1% interest rate and annual debt service of about $62,000.

The committee voted to accept the resolution. Director Hartman moved to accept the resolution; a director identified as Sarah seconded. Committee members present responded in the affirmative and the chair declared the motion carried.

With committee approval complete, Ketzler said the next procedural steps are action by the full school board (the district mentioned possible board consideration on June 9 and a final adoption meeting around June 30) and that certain budget amendments (for example, changes tied to final foundation receipts) can be made later without reconvening the legal budget committee if the changes do not affect the property tax rate.

The committee adjourned after brief closing remarks.