Superintendent: federal actions could cut about $6 million; district will use reserves to keep federally funded staff this year

Superintendent Castaneda told the Salem-Keizer School Board on July 8 that recent federal actions and legislation appear to have created roughly $6,000,000 in unanticipated funding cuts for the district and warned the reductions would disproportionately affect the district’s most vulnerable students.

"Salem Keizer Public Schools maintains the reserves to ensure that the staff who are federally funded will continue to be funded throughout this school year. That is our commitment to our students and to our staff," Superintendent Castaneda said, adding that using reserves in this way is not a long-term solution.

Castaneda described the federal changes as arriving in two stages: an initial federal action suggesting withholding of federal funding for the fiscal year and the passage of a federal bill that makes some of those cuts more permanent. The superintendent said those reductions target services for students experiencing hunger and homelessness, students who rely on Medicaid, English language learners, students with mental and behavioral health needs, and migrant students.

The superintendent framed the district’s response as prioritizing continuity of services and staffing for the coming school year while additional policy analysis is completed. Castaneda said the reserves permit the district to continue funding federally supported staff for the year but acknowledged that sustaining those positions beyond the school year without new revenue is uncertain.

Board members did not take formal action on funding at the meeting; the superintendent’s remarks were provided as the information standard report for the board to review and to inform future budget and policy work.