Coquille SD 8 projects roughly $1.5 million shortfall; superintendent outlines cuts and contingency plan

Superintendent Gallagher told the Coquille School District 8 board on April 9 that the district's current revenue estimate of about $19.57 million falls short of projected roll-up costs just over $21 million, producing a projected budget gap of about $1.5 million for the coming biennium.

"We're estimating a budget shortfall of about $1,500,000," Gallagher said, and walked the board through revenue assumptions including the March state estimate, property taxes, and other local receipts. Gallagher said the March estimate increases state school fund dollars for the district, but other costs including debt service and salaries keep total projected costs higher than revenue.

Gallagher outlined specific revenue and cost items: roughly $2.74 million expected from property taxes, about $200,000 in investment income, $20,000 in admissions and modest childcare fee increases, and debt payments of roughly $850,000 annually. Roll-up payroll and benefits were listed as the largest categories: certified staff (~$7.5 million), classified (~$5.0 million), admin (~$1.9 million) and confidential (~$1.0 million).

To narrow the gap the district has already identified $462,000 in savings by reorganizing roles and delaying some hires. Gallagher said the district decided not to replace a maintenance supervisor and reassigned responsibilities (saving about $100,000), will hire its own business manager rather than continue ESD services, and is shifting some district office positions and stipends. Gallagher also proposed not hiring a K-1 teacher at Winter Lakes Elementary for now, which he said conservatively saves the district about $189,000 in budgeted salary-and-benefit costs.

Gallagher added the district is pursuing both short-term adjustments and strategic investments: continuing some grant-funded positions (integrated guidance and student-investment funds), considering a CDL program that could become revenue-neutral over time, and preserving a $1 million contingency in the beginning fund balance. He cautioned that the May and June state estimates could change the picture: "We are not gonna know what our true funding number is until the very end of June," Gallagher said, pointing to the state's long legislative session and the May revenue forecast.

The superintendent also flagged potential upside from state policy changes: if the 11% cap on double-weighting for special-education students is lifted, Gallagher estimated the district could gain roughly $425,000. At the same time Gallagher warned of a proposed state accountability plan that could allow the Oregon Department of Education to intervene in underperforming schools and limit local control over some spending decisions.

Board discussion focused on timing and next steps. Gallagher said the budget process is early and he expects to return with a May forecast and a June general-fund estimate; he asked the board to weigh both immediate savings and longer-term program stability before making final decisions. The board did not take final budget adoption action at the meeting.