District leadership told the board the state’s revenue forecast has improved modestly but a significant shortfall remains; board members were urged to prepare for possible 0.5–5% reductions from the state. One presenter said a 5% cut to the state school fund would reduce Parkrose’s revenue by about $2,000,000 and would likely force staff reductions.

Superintendent-level comments to the board highlighted a separate operational risk: the federal compliance supplement for audits has not been issued. Speaker 5 said auditors cannot complete the compliance portion of the single audit without the federal guidance; if the district does not have a completed audit opinion by Dec. 31 the state can withhold state school fund payments. Options presented by auditors included taking a risk and completing the audit without the compliance supplement or paying extra to obtain separate audit opinions; the superintendent said she may recommend spending to avoid withholding monthly state funds.

On policy, the board debated a proposed stipends and reimbursements policy. Board members expressed concern about taking funds from district resources while current programs lack resources. After discussion a motion to adopt bracket option 3 (no board compensation) with an amendment requiring an annual review at the July organizational meeting passed by voice vote.

Actions taken: the board voted to uphold the superintendent’s decision in a volunteer‑exception complaint (Policy KO), approved the Student Investment Account grant agreement for 2025–2027, approved the 2025–2026 board goals, and adopted the stipend policy with Option 3 and an annual review amendment.

What happens next: district administrators said principals will be asked to freeze nonessential general‑fund spending in January while the district awaits the next state revenue forecast (February 4) and staff will update the board in December about advocacy steps and potential audit expenditures.