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District officials: special-education and high-cost disability bills could add millions but outcome remains uncertain
Summary
District officials told the legal budget committee pending state legislation to raise the special-education cap or to expand high‑cost disability funding could add material revenue for Lake Oswego SD 7J, but outcomes remain uncertain and officials are not relying on those measures in the proposed budget.
District finance staff and the superintendent briefed the legal budget committee on state-level measures that could materially affect the 2025–26 budget.
Superintendent Dr. Shealy and finance staff described two legislative possibilities: raising the special-education cap (currently 11 percent) to 15 percent and increasing the state high‑cost disability grant. "We are right now at 14.3% in Lake Oswego," Dr. Shealy said when discussing the special-education cap. She said raising the cap from 11% to 15% would mean more students would receive a higher weight in the state formula. Dr. Shealy and staff estimated that if both a change to the special-education cap and higher high‑cost disability funding passed with additional state money, Lake Oswego could see roughly an additional $4.5 million; she also described a lower, approximate $2.5 million figure tied to one of the proposals.
Roger, who presented the state school fund slides, explained that changes that are implemented as carve-outs rather than added money to the state school fund would not increase the overall pie for districts: "Is this an addition or a carve out? ... because, you know, shell game is the term that comes to it." Roger and other staff emphasized it matters whether the legislature adds revenue to the overall state school fund or redistributes existing funds among districts.
Officials said both bills were moving through the legislature at the time of the meeting and that outcomes were uncertain; district staff said they were not assuming those changes for the proposed budget but noted passage would significantly reduce pressure on operating cuts.
