North Bend SD proposes $47 million general fund budget; reserves projected to fall to $4.2 million

North Bend School District budget officials presented a proposed 2025–26 general fund budget of $47,014,073 at a budget committee meeting, warning that maintaining current staffing and pay increases would draw down reserves by roughly $3.7 million and leave an estimated ending fund balance of about $4.2 million in June 2026.

The budget presentation, given during the committee’s public meeting, laid out the district’s major revenue assumptions, including a biennial state school fund allocation the presenters described as $11.35 billion statewide and an estimated per‑student allocation of about $11,094 for the coming year. District staff said the proposed budget also incorporates recent grant awards, most notably an Oregon seismic retrofit grant of approximately $2.5 million for retrofitting North Bay Elementary and additional funds from the Student Investment Account (SIA) and Preschool Promise.

District officials and staff said enrollment decline remains the budget’s primary structural challenge. The presentation said the district’s September 2024 ADM (average daily membership) was 1,955, a projection used earlier for 2024–25 budgeting was 2,001, and more recent counts lowered that number to about 1,894. Presenters said every 100 fewer students equals roughly $1.1 million in state funding loss for the district; Evergreen Virtual Academy (the district‑sponsored virtual charter) affects revenue differently because most of its students live outside North Bend and the district retains a 5–6% administrative fee on Evergreen’s state money.

On expenditures, the budget assumes a 5% cost‑of‑living increase for certificated staff negotiated by the certified union; classified staff wages are expected to “piggyback” on parts of that agreement. The presentation also highlighted rising employer costs for unemployment insurance (staff noted new summer UI claims for classified employees), PERS, utility bills and insurance rates, and other inflationary pressures. Staff said they built the budget to maintain current staffing levels (status quo) and that doing so would require using reserves to balance the general fund in 2025–26.

Officials described reserve policy and targets: a board resolution and policy that together require two separate components of contingency (a board policy calculation they summarized as requiring about 7% across funds when aggregated). Staff estimated the district would begin 2025–26 with an estimated available balance of about $8 million but would end the year near the policy minimum — approximately $4.2 million — if no staffing reductions or other changes are made.

The presentation summarized the district’s major special revenue grants and programs aligned to the district strategic plan: the Student Investment Account (SIA) supporting staff and programs tied to class size and well‑rounded education (the district expects about $2.6 million from SIA next year); the Stronger Connections grant funding safety, counseling partnerships and restorative practices; Preschool Promise funding two preschool classrooms (the Bitty Bulldogs program); and a High School Success/integrated guidance package aimed at graduation and career support. Staff said grant funds are aligned to the district’s strategic goals and carry specific reporting requirements.

On Evergreen Virtual Academy, staff explained the financial mechanics and risks: the state pays Evergreen based on its statewide ADM, the district passes through the majority of those funds and retains a small administrative percentage, and sharp enrollment swings at Evergreen have in the past caused budget stress when the district budgeted on Evergreen’s estimates rather than its actuals. Staff said the district’s agreement with Evergreen includes protections (holding one payment in escrow and paying Evergreen on actuals when necessary) to reduce fiscal risk to the district.

District staff invited the budget committee and public to review a revised budget book posted before the meeting that includes the seismic grant and a budget adjustment sheet showing the $2,499,000 addition. Committee members were told questions and requests for detail should be emailed by May 14 to allow staff to prepare answers for the next committee meeting.

Why it matters: District leaders said the combination of declining enrollment, rising labor and benefit costs, and new, sometimes one‑time, grant awards creates a precarious near‑term fiscal picture. Maintaining current staffing without new revenue or targeted reductions would draw reserves down to policy minimums and require further decisions in the coming year about attrition, staffing, or program changes.

Committee directions and next steps included soliciting budget committee questions over the coming week, returning for follow‑up review at the next meeting, and potential staff analyses of attrition and scenario forecasts to identify whether planned retirements and natural attrition could reduce staffing costs without formal layoffs.

Speakers quoted or identified in the record include Chris (elected budget committee chair), Jeff Bridges, finance director for the City of North Bend (who declared a potential conflict), Vince (district staff member presenting budget material), Anna Bergmeier (budget staff referenced), Robbie Stalka (introduced during the meeting), and other budget committee members and appointed community members who asked questions during discussion.