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Board warned of state revenue shortfall and potential funding pressure for schools
Summary
Staff summarized the Oregon economic forecast and warned of lower growth and an $800 million projected shortfall in the next biennium, saying the outlook could limit state support for education and make current district reserves more important.
Beth (staff member) briefed the board on the state economic forecast and its effects on schools, reporting that projected economic growth between March and June was below 1% and that the state forecast shows "there is an $800,000,000 hole right now looking at the next biennium." She said lower corporate activity tax receipts and other state revenue pressures mean districts should be cautious about ongoing program expansions funded by those sources.
Beth explained the district currently receives special‑education funding up to an 11% cap and that the district’s special‑education population has been between 12–13%, leaving an unfunded gap for higher‑need districts. She said proposals to raise caps or add early intervention funds are unlikely in the next legislative cycle and urged the board to preserve reserves and prepare for slower revenue growth.
