District summarizes state revenue forecast: modest gains but sizable biennial shortfall remains
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Summary
Staff briefed the board on the December revenue forecast: net general fund and lottery resources rose by $318.8 million since September, but the state budget is still about $635.9 million lower than prior levels; no corporate or personal 'kicker' is forecast for the 2025–27 biennium.
Speaker 3 briefed the board on the December state economic and revenue forecast and the immediate implications for K–12 funding. The presentation highlighted a $318.8 million rise in net general fund and lottery resources since September, and a continuing overall state budget shortfall of roughly $635.9 million.
Staff emphasized that while the forecast shows improvement, there remain competing priorities in the short legislative session (houselessness, mental health, health care) and federal uncertainties that could affect state allocations to education. Speaker 3 said district leaders will continue to advocate during the February short session and monitor the next critical forecast in February 2026.
The briefing also noted two state reserves relevant to education: the Educational Stability Fund (about $1.2 billion) and the Oregon Rainy Day Fund (about $2.1 billion), and described the constitutional and vote-trigger rules that govern usage. Staff said the district will update the board as the February forecast and budget decisions approach.
