Philomath board warns midyear loss of state levy equalization grant could force steep cuts

Philomath School District trustees were told a potential midyear removal of the state's local-option levy equalization grant would sharply reduce district revenue and could force painful cuts before the school year ends.

"That would mean cutting $600,000 out of this year's budget," the superintendent, Susan, told the board, noting the reduction would occur across the final few months of the fiscal year when many staffing and program commitments already are in place. "We've already hired teachers. There's very limited amounts of things we can do. It'd be very painful."

Board members heard that the equalization grant—designed to help districts with lower property values—had accounted for several hundred thousand dollars in recent years (one figure cited in discussion was $844,599 last year). Trustees said losing the match midyear would require immediate actions such as furlough days, program reductions or other short-term measures, and could also threaten instructional time unless the legislature provided statutory relief.

Superintendent Susan said district leaders and a coalition of six local districts had drafted a letter to the co-chairs of the state ways and means committees and to local legislators asking them not to eliminate the grant in the current year. "If you're going to take this away next year, that's bad enough, but to take it away this year would be truly and completely devastating," she said.

Board members agreed to support outreach and advocacy on the issue. No formal budget reductions were approved at the meeting; the district plans to factor scenarios into next year’s budget preparations and to press legislators for stability in funding.

Next steps: the circulated letter was scheduled to be sent to legislative leaders the following day, and staff will continue to model budget scenarios should the grant be removed or scaled back in the coming weeks.