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Portland officials say state funding formula changes should restore several million dollars next year
Summary
Board chair Sarah Lentz and Superintendent Dr. Scallon said recent changes to the state EPS funding formula — a regional cost adjustment and a poverty-sensitive factor using free-and-reduced-lunch counts — are likely to return roughly $3.7–$3.9 million to Portland Public Schools next year, though special education and transportation funding were not addressed.
Sarah Lentz, chair of the Portland Public Schools board and chair of the Legislative & Public Affairs Committee, told the committee on May 11 that lawmakers approved late-session changes to the state EPS funding formula that should increase district revenue next year.
"We had state representatives working really hard to pass some changes to the EPS funding formula," Lentz said, describing two key adjustments: a regional cost-of-living adjustment and a poverty sensitivity factor that uses free-and-reduced-lunch data. Under the final language, property valuation would account for roughly 90% of the formula and the poverty factor about 10%, Lentz said.
Dr. Scallon, the district superintendent, said an additional proposed multiplier for serving low-income students and other higher-cost changes were not included because of their larger budget impact. "There was gonna be an increased multiplier for serving low income students... and that was not included at the end," Scallon said.
Lentz said early estimates put Portland’s gain at "about $3.7–$3.9 million" next year, which she said would largely offset recent declines in district funding. She also noted the law includes a multi-year hold-harmless provision intended to shield districts from negative impacts until approximately 2029.
Committee members stressed the changes were produced quickly late in the session and that more modeling will be needed as the formula takes effect. Lentz cautioned the district will watch one full funding cycle before treating the increase as permanent.
Lentz and Scallon also flagged areas left unresolved by the session: special education reimbursement changes and transportation funding were not addressed, and construction funding was removed late in the process. Scallon said construction funding appears likely to return as an agenda item in future sessions.
The committee did not take formal action on the legislative matters during the meeting; members said staff and the superintendent will continue tracking implementation and possible follow-up advocacy.
