Lake Oswego legal budget committee reviews $10 million in proposed cuts, 112 FTE reductions

The Lake Oswego School District legal budget committee on Tuesday reviewed a preliminary 2025-26 general fund proposal that assumes about $10 million in reductions, 112 FTE reductions between this year and next and a general fund budget of about $123 million.

The presentation by district staff updated a December financial model and extended the projection through 2026-27. "It is not enough for us to keep exactly what we have been doing," the committee was told by Dr. Shealy, describing the district—s need to reduce spending to match projected revenues.

The committee heard that the current financial model shows the near-term shortfall shrinking from the December projection of roughly $12 million to under $2 million for 2025-26 after the planned reductions. For 2026-27 the model currently projects a preliminary shortfall of about $1.5 million. The budget document places total proposed general fund revenues at approximately $123,000,000.

Stuart Kelsler, the district staff member who walked the committee through the model, told the group that the recently signed PERS relief bill is expected to reduce employer rates temporarily and that the district is awaiting a formal actuarial letter. "Preliminary…