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Astoria School District staff present 2025-26 budget guide, warn of enrollment and PERS pressures
Summary
District staff introduced the 2025-26 budget guide, citing declining enrollment, possible loss of federal stimulus funds, and a projected PERS employer-rate increase that could raise payroll costs by about $2 million.
Astoria School District staff opened a study-session presentation of the district's 2025-26 budget guide and highlighted several fiscal risks facing the coming year.
A staff member reading the district's introductory letter described the guide as "an overview of the district's funding, demographics, financial estimates, enrollment forecast and enrollment forecasting" meant to help the community navigate budgeting for the 2025-26 school year. The letter named Craig Havas as its author.
Staff said the district is watching declining enrollment and the potential loss of federal funds and noted those changes could alter assumptions after the budget is adopted. "As we move forward in the budget process, additional information will be added and updated when it becomes available," the staff member said.
Officials emphasized the composition of the general fund, saying roughly 85% of the general fund is spent on wages and benefits and the remaining 15% covers supplies, utilities, transportation fuel and transfers to food service and athletics. That concentration on personnel limits flexibility to absorb new costs.
Board members were specifically warned about a planned increase to employer rates for the Public Employees Retirement System (PERS). Staff said the scheduled change beginning July 1, 2025, combined with existing obligations, will increase payroll costs "by close to" a total that staff estimated at about $2,000,000 for the coming year.
Staff described multiple cost pressures beyond payroll, including rising health-insurance premiums and a recently expanded unemployment benefit under Senate Bill 49 (effective January 2024) that widened eligibility for some education employees and created budgeting uncertainty this year.
To mitigate revenue risk, staff proposed conservative enrollment budgeting (planning for an ADM of about 1,690 students for 2025-26), noted that some revenue sources such as the construction excise tax are earmarked for facilities work, and reviewed the district's grants portfolio, including $1.8 million from the Student Success Act directed to counseling, special education, English-language development and elementary class-size priorities.
The study session included no formal vote on the budget guide; staff said further updates will be added as new information becomes available and that contract negotiations and retirements will factor into the final budget.
