Salem-Keizer SD 24J projects $25 million structural shortfall; board weighs furloughs and negotiated fixes

Salem (Dec. 9, 2025) — Salem-Keizer SD 24J officials told the school board Tuesday night that the district faces a roughly $25 million structural deficit in the coming year and a steady erosion of its general-fund reserves if no recurring reductions are made.

Chief Financial Officer Heidi Sun presented the district's five-year general fund forecast, saying, "we are forecasting expenses to outpace our revenues by 25,000,000," and showing the district's fund balance falling from about $96,000,000 to $71,000,000 and continuing downward toward potential depletion in fiscal 2028'29 if no action is taken.

Why it matters: roughly 95% of the district's general fund is budgeted for staff, and board members said the options commonly discussed'furlough days, negotiated compensation changes, early-retirement notices or targeted reductions'all carry trade-offs that directly affect classroom staffing and instructional days.

At the meeting, Superintendent Castaneda described steps the district has taken and options on the table, including district-level reduction exercises already under way and a proposal to ask staff planning to retire to notify the district earlier so vacancies can be used to reduce positions with less disruption. "What that does is help us identify vacancies earlier," she said, arguing early notice would make it easier to "sculpt" staffing changes with minimal disruption.

Directors pressed for concrete analysis. One trustee asked whether the shortfall would trigger reductions in force; the superintendent responded that the district is attempting to identify about a quarter of the reductions internally before considering layoffs and emphasized ongoing conversations with labor partners. Board members repeatedly underscored the goal of preserving in-school staff and avoiding reductions that would shorten instructional time or reduce school days. As Director Sandigiri put it, "we need teachers" and "Children cannot wait."

The board did not adopt a formal strategy or take a vote to implement any specific reduction at the meeting. Several trustees asked staff to immediately open conversations with labor partners and to provide more detailed analyses of possible furlough-day savings and combinations of approaches. The superintendent said district teams and labor representatives have been briefed and will continue coordinated planning.

What's next: district staff said they expect greater clarity on district-level reduction options by January and a fuller package of recommendations in mid-to-late winter. The board will consider those recommendations, negotiations with labor partners, and the trade-offs between short-term measures (for example, furlough days) and longer-term structural changes.

Speakers quoted in this article are listed in the meeting record and appear in official minutes.