Declining enrollment and flat grant funding squeeze Gresham-Barlow finances
Summary
Staff told the Budget Committee that enrollment has fallen steadily for a decade and federal grant funding is below 2011 levels in real terms, compounding the district's structural funding gap and contributing to projected reductions.
Budget staff said state and federal funding levels, paired with declining enrollment, are reducing district revenue and pressuring the general fund.
Pete Bejarano described that state school fund revenue is enrollment-driven and that enrollment has declined for about 10 years, with the district forecasting a continued decline. He also noted the state legislature allocated $11.36 billion for the biennium but would have needed $12.1 billion to maintain the Current Service Level, saying the district made $8.1 million in reductions for 2025–26.
Staff told the committee federal grant funding "remains below 2011 levels" in real terms and that the district has been drawing on reserves since the pandemic; the projected ending fund balance is around 6%, which staff said is below the board policy target of 8%. The committee was warned the combination of these trends will require multi-year planning and cannot be solved with one-time actions.
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