Parkrose SD 3 budget committee adopts $93.4 million 2026–27 budget; staff propose 26 FTE reductions

Parkrose School District 3's budget committee voted April 22 to adopt a proposed 2026–27 budget of $93,436,295 and approved the property tax levy needed to support it, after staff outlined a plan that reduces district spending by more than $3.3 million.

The committee approved the resolution to adopt the budget and then set the permanent rate and general obligation levies. Superintendent Michael said the proposed budget is balanced per Oregon budget law but requires difficult reductions: "We present a balanced budget that requires Parkrose to reduce its cost by more than $3.3 million," he said during his presentation.

Why it matters: District leaders said the budget gap stems from several persistent pressures — growing special education costs, enrollment declines, and rising costs for salaries, insurance and utilities — that together limit the district's flexibility. Michael told the committee Parkrose expects fewer students and higher per‑student costs, noting an estimated $11,511 in state school fund per pupil compared with total expenses that he said range from about $16,000 to $20,000.

What was approved and how votes fell: The committee approved the budget by voice vote and then passed a resolution adopting the budget amount and a companion resolution to levy property taxes at the rate read into the record. Members discussed whether to postpone final approval to allow additional questions; a small number asked for more review, but a majority voted to proceed. Andrea (administrative staff) read the formal motion text and the chair called the ayes.

Key program and personnel changes: Finance staff said the balancing plan includes eliminating or freezing 13 certified positions and 13.375 classified positions (about 26 FTE total), reductions of roughly $200,000 in curriculum and technology spending, and a transfer of $850,000 from the Thompson fund to reduce the immediate cuts. "These reductions are not good for the students, families, or staff," the superintendent said, adding that some cuts will result in layoffs or reassignments under contract rules.

Special education, pensions and revenue constraints: District staff repeatedly identified special education as the primary cost driver, reporting special education spending rising to a projected $11.8 million and a current reimbursement rate of roughly $0.21 for every dollar of high‑cost placements. Staff also described pension (PERS) liabilities and pension bond payments that consume a significant share of state allocations.

Community and next steps: Committee members and staff committed to transparency and outreach. Staff said notices required by contract — teacher notifications by May 1 and classified notifications the following week — will proceed as needed and that the district will continue bargaining with labor partners about options such as non‑instructional furlough days if permitted by state guidance. A written public comment from Amy Fox urging retention of the middle‑school band was entered into the record and acknowledged by the committee.

The committee adjourned at 9:26 p.m.; staff said they will continue to respond to committee questions and provide school‑level details as reductions are finalized.