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St. Helens SD 502 leaders outline budget shortfall and say staff reductions, furlough days likely
Summary
Superintendent Karen Gray told the St. Helens School District board that a steep budget shortfall driven by rising PERS costs and temporary pandemic-era funding will require staff reductions and furlough days; details and bargaining with unions are pending.
Superintendent Karen Gray told the St. Helens School District 502 board that the district is facing a significant budget shortfall that will require reductions in staff and school days and that the district is preparing to negotiate those changes with employee unions.
Gray said the primary drivers are a steep rise in employer retirement (PERS) charges and the end of one-time pandemic-era funds (ESSER) that had supported added positions. "Because our payroll has gotten larger and larger, the side account that offset our PERS bill is being exhausted," Gray said, describing a jump in the district's PERS rate that she said rose from about 3.9% to about 14.9% and that this has created "millions of dollars" of additional cost.
Gray told the board the district has been analyzing options with principals, human resources and the business office and is preparing for a reduction in force (RIF) and furlough days, both of which must be bargained with unions. "We're going to have to do a reduction in force," she said. "People have rights to those situations around seniority, competence, and licensure, and also bumping rights." Gray said the district would provide more notice than contract minimums and promised a respectful process.
Why it matters: Most of the district's spending is personnel. Gray said cuts to supplies or one-time purchases would not close the shortfall: "One day to run the St. Helens School District is roughly $110,000," she said, meaning sizable staff or day reductions are the practical lever.
Financial context and next steps: Gray described the interaction of several funding streams. The district benefitted for years from a "side account" that reduced its effective PERS cost but that account's protection phases out in 2027. The district also added staff funded temporarily by ESSER and Student Investment Act (SIA) grants; some positions now lack sustainable general-fund support.
Gray and business staff said they expect to present firmer numbers at upcoming budget committee meetings and that the board would see precise proposals in May. "We have a solution," Gray said, "but we can't make that public yet because we have unions to talk to. We respect our unions." Board members and staff urged community participation in budget committee meetings to review tradeoffs and priorities.
The board's reaction: Board members stressed the need for transparency and community input. One director urged residents to attend budget committee meetings and participate in the process so the district has broader perspective when making difficult choices.
Ending: Gray said the district will continue to work with principals, HR and bargaining teams and will publish numbers and proposals at the May budget committee meeting and at board meetings thereafter.
