Education subcommittee forwards TSPC funding report after warning of nearly $6M shortfall and 600-case backlog

The Joint Committee on Ways and Means — Education Subcommittee on Feb. 12 received a TSPC (Teacher Standards and Practices Commission) report that concluded Oregon’s reliance on educator‑paid licensure fees is unsustainable and could leave the agency with a projected shortfall of nearly $6,000,000 by the 2027–29 biennium. The committee voted without objection to send the report and the Legislative Fiscal Office recommendation to the full committee for further action.

The report, presented by TSPC Executive Director Rachel Alpert, said licensure fees are the commission’s primary operating revenue and that the current base licensure fee is $182. Alpert cited state fee authority under ORS 342.127 and described a long‑running decline in revenue since 2023 alongside rising personnel and operating costs. “Revenue has been decreasing since 2023,” Alpert said, and current projections show “an anticipated shortfall of nearly 6,000,000 by the end of the 2027–29 biennium.”

Why it matters: TSPC oversees educator preparation program approval, teacher licensure and investigations; those core functions do not scale with fee revenue. Extended investigation timelines can have direct consequences for student safety, school budgets and the employment prospects of educators, the report said. Alpert told the committee TSPC is managing roughly “over 600 cases currently assigned to us,” which members said underscored the operational stakes of any funding decision.

The report evaluated three funding scenarios. Scenario A (no change) would require service reductions or staffing cuts as ending fund balances fall below minimum reserve thresholds. Scenario B (relying solely on fee increases) would require more than a 100% increase to licensure fees over several biennia to restore solvency; the presentation included an example path showing a 71% increase by 2029 with cumulative increases approaching the 100%+ range in later biennia. TSPC said it did not recommend Scenario B as a standalone solution because it would place disproportionate burden on individual educators and push Oregon above regional norms.

TSPC recommended Scenario C, a hybrid model combining moderate, phased fee increases with supplemental revenue from broader education funding sources. The hybrid plan included a two‑part approach: a phase‑1 interim fee increase that could take effect July 1, 2026 to provide near‑term relief, and a phase‑2, tiered fee structure tied to deployment of an educator data system (EDS) to enable more targeted, equity‑sensitive fee tiers (TSPC suggested a target implementation around July 2027, timing contingent on EDS rollout and legislative decisions).

During questioning, lawmakers pressed on several operational and equity concerns. Representative Wright asked whether TSPC had received funding to implement early literacy educator preparation standards; Alpert said she did not believe TSPC had been allocated dedicated funding for that work. Representative McLean urged the committee to match resources to core mission priorities — particularly investigations and educator preparation oversight — noting those activities directly affect school safety and teacher readiness. Senator Weber asked about complaint inflow and whether complaints were accelerating; Alpert said complaints have increased steadily over multiple biennia and offered to provide year‑by‑year numbers.

On staffing, Alpert said the last legislative session granted position authority for nine additional positions to address the backlog but did not provide funding to hire them. TSPC currently has five investigators (one recently hired, up from four) and said it hopes to make four of the nine additional allocations investigator positions if funding is provided.

DAS Chief Financial Office representative Ben Deyoung recommended the committee acknowledge receipt of the report. The Legislative Fiscal Office likewise recommended acknowledgment and follow‑up; Co Chair Solman moved to refer the request to the full committee with the LFO recommendation. The motion was made without discussion, no objection was recorded, and the committee sent the matter to the full committee for further consideration.

Next steps: LFO and the governor’s budget office will carry related decisions into next session’s budget proposals; TSPC said the committee will see the topic again as the governor’s budget proposes fixes. Committee staff also announced the Department of Early Learning and Care will present on ERDC funding at the next meeting.