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Superintendent outlines budget pressure and projected FTE reductions; union urges targeted spending of reserves
Summary
Superintendent Dr. James told the North Clackamas SD 12 board that flat state funding and enrollment declines will likely require roughly 25 FTE reductions next year and cited a projected PERS cost increase of $10.7 million; the district’s ending fund balances were discussed and union leaders called for reversing recent layoffs and gradual drawdown of reserves toward board policy levels.
Superintendent Dr. James told the board on April 9 that the district faces structural budget pressures that will require staffing adjustments for the 2026–27 school year.
"After careful analysis, we are projecting approximately 25 FTE reductions for next school year," Dr. James said, citing enrollment declines (118 students below projections this year and a forecast decline of 126 next year) and rising costs. He emphasized that many reductions could be managed through retirements, resignations and reorganization rather than layoff.
Dr. James reviewed the district’s reported ending fund balances (66.6 million for 2022–23, 85.1 million for 2023–24, and 88.2 million for 2024–25) and corrected a union communication’s percentage calculation, noting the district’s ending fund balance percentages using standard methodology were 22.85%, 25.84% and 24.34% over the past three years. He warned the board that the district’s bonded-side account rate relief is ending and that the finance team projects a PERS cost increase of "$10.7 million plus beginning 2027." He said absorbing that cost without reserves could require cutting roughly 85 positions.
Union and classified-labor representatives argued the district should use a portion of reserves to protect current staffing and direct resources to high-need schools. The North Clackamas Education Association speaker (identified in the transcript as Michelle) urged five actions including reversing recent layoffs, reconsidering active FTE cuts, investing in schools with safety concerns, committing to a strategic drawdown of reserves toward the 10% board-policy floor, and spending more on current students now.
OSEA chapter lead April Bian Coney also asked the district to reconsider reducing paraeducator hours and to ensure staffing decisions align with current building needs rather than enrollment predictions. No immediate budget votes were taken; the superintendent said the district will work with the budget committee and board over the next three months to finalize the 2026–27 budget.
