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Tigard‑Tualatin finance update: $17.6M fund balance, PERS rate changes could add millions
Summary
District staff told the board the 2024‑25 general fund closed with about $17.6 million (roughly 10% of resources) after a favorable spring revenue variance; looming PERS employer‑rate increases and shrinking state/local grants could add several million in costs and complicate the 2027–29 planning horizon.
The Tigard‑Tualatin School District on Monday received a detailed financial briefing that showed a stronger‑than‑expected close to 2024–25 but warned of significant future pressure from PERS employer‑rate shifts and from uncertain state and federal funds.
A district finance presenter summarized the year’s results, saying, “we ended the 24‑25 year with a $17,600,000 fund balance, which is approximately 10% of resources.” The presenter attributed the favorable variance in part to improved investment returns, a positive state school fund reconciliation and higher‑than‑expected indirect charge recoveries from grants.
The briefing, however, focused on risks that could widen budget gaps. Staff pointed to recent state revenue uncertainty — including an initially unallocated $473 million that swung to a $372 million shortfall after federal tax changes — and to reductions in some state and local grants (preschool promise essentially flat, student investment and high‑school success grants reduced, and outdoor school funding cut about 20%). The presenter warned that, without legislative fixes, districts may need to use general‑fund reserves or enact staffing and program reductions.
PERS (Public Employees Retirement System) was singled out as a major cost driver. The presenter explained that loss of prior rate‑relief and expiration of a side‑account credit will push employer rates higher: “our tier 1, tier 2 rates at a minimum will be 29.7%,” the presenter said, and illustrated that a hypothetical static payroll of $102,000,000 would raise employer PERS costs from about $23,700,000 today to roughly $27,900,000 — an additional $4,000,000 in a single year.
Board members thanked staff for the clarity of materials and noted several ongoing hearings in Salem that could change the outlook. One director observed that much depends on how the state responds to federal tax changes and which scenarios the Oregon Department of Education forwards to the legislature.
What’s next: staff said advisory PERS rates will arrive in December and the district will convene community budget workgroups in the spring to explore scenarios. The presentation emphasized that some cost pressures are largely outside local control and that the board will continue advocacy with state policymakers.
