Centennial SD 28J projects $3.5–$4 million shortfall for 2025–26 as enrollment falls and payroll costs rise

Superintendent Owens told the Centennial School District Budget Committee on Jan. 22 that the district is forecasting a structural budget gap for the 2025–26 school year driven by lower enrollment, rising payroll-related costs and the end of federal pandemic relief funds.

The gap stems from a projected increase in district expenses of about 8% for 2025–26 while the governor's proposed state school fund increase would amount to roughly 6.9% in the first year of the biennium, Superintendent Owens said. “The state of Oregon is not projected to provide sufficient funds to do the same things next year that we are doing this year,” Owens said during the presentation.

Nut graf: The committee heard that expiring federal ESSER dollars, employer retirement (PERS) costs, negotiated salary step/cola increases and continued declines in student numbers together create a projected general-fund shortfall of about $3.5 million to $4 million for 2025–26. District leaders said they will deliver a proposed budget in April that reflects targeted reductions and priorities the committee identifies.

Most important fiscal drivers - ESSER expiry: Owens said elementary and secondary school emergency relief (ESSER) funds expired in September 2024 and will not be available in 2025–26; district leaders said some summer 2024 expenses were shifted into ESSER this…