Gresham-Barlow braces for $7.5M–$13M budget shortfall; RIF possible

Gresham-Barlow School District officials told the board on Feb. 20 that the district is facing an estimated $7.5 million to $13 million shortfall for the 2026–27 budget year. Finance presenter Pete Bejarano and Superintendent Tracy Klinger cited state funding that is not keeping pace with costs, declining enrollment, payroll increases of more than 4% and rising PERS, utility and insurance expenses as the primary drivers of the gap.

Bejarano reported the district is down about 6% in enrollment compared with neighboring districts that have seen declines of 10%–20%. He said utility costs have risen roughly 8% and insurance costs about 12% year over year. The board packet estimates that a $1 million reduction equals about seven full‑time equivalent positions; a day of district operating expenses is about $710,000, and the Ending Fund Balance is currently roughly 14 days of operating costs. Combined with $8 million in cuts made last year, the district said two‑year reductions could total $15.5 million to $21 million.

Klinger and staff emphasized they are planning for multiple scenarios and stressed the complexity of a reduction‑in‑force (RIF), which is governed by contract seniority rules and would be implemented sparingly because of its wide impact on employees and PERS participation. They said the district is preparing contingency plans and will work with labor groups as the situation evolves. No formal RIF motion was made at the meeting; board members were briefed and asked staff to return more detailed RIF materials and staffing counts in future budget committee meetings.