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Klamath Falls schools warn of possible cuts as state revenue forecasts shift
Summary
Superintendent Keith Brown and Director of Operations Daymond Monteith told the board the district faces state funding uncertainty driven by volatile State School Fund forecasts, a roughly 10-student enrollment shortfall (≈$250,000), and ODE reduction scenarios; key revenue forecasts arrive Nov. 19, 2025.
Superintendent Keith Brown told the Klamath Falls City Schools Board on Nov. 10 that the district is entering a period of significant financial uncertainty as state revenue forecasts and federal policy proposals change.
Brown said the district’s enrollment is about 10 average-daily-membership (ADM) units below the budgeted estimate, a shortfall that the district estimates represents roughly $250,000 in lost revenue when multiplied by the local per-student revenue range of $12,000–$15,000 annually. He highlighted that the Oregon Department of Education submitted two budget-reduction scenarios (2.5% and 5.0%) to the Legislative Fiscal Office on Nov. 3 as part of required planning.
Daymond Monteith, Director of Operations, reported the district’s salary expenses are running about 1% higher than budgeted while overall expenses are approximately 0.7% below projections. Monteith emphasized that personnel costs account for roughly 87% of district spending, meaning significant cuts would likely affect staffing or program delivery if reductions are required.
Board members were given two near-term dates to watch: the next statewide revenue forecast on Nov. 19, 2025, which may clarify the magnitude of the shortfall, and the Oregon Legislature’s short session starting Feb. 2, 2026. The superintendent stressed the ODE process is “planning, not an enacted budget cut,” and that the Legislature will decide whether and how to implement reductions.
If federal tax-law changes tracked by administration proceed as currently proposed, Brown’s presentation referenced an estimate that Oregon could face an $888 million revenue loss in the first year of the next biennium tied to tax-code alignments. The district will wait for final state guidance before developing contingency plans; administrators said no staffing or program reductions are happening at this time and that any options would aim to minimize impacts on students.
Next steps: the district will monitor the Nov. 19 forecast, continue to update the board, and—if reductions become likely—form a district team to develop options to present to the board and community.
Source: Presentation and financial report to the Klamath Falls City Schools Board of Education (SEG 002, SEG 003, SEG 009, SEG 010).
