Gresham-Barlow forecasts $7.5M–$13M gap; board readies contingency plans and possible RIF

Superintendent Dr. Tracy Klinger and finance staff told the Gresham-Barlow School District Board on Feb. 20 that the district faces a projected 2026–27 budget reduction between $7.5 million and $13 million, with some planning scenarios centered near $10–11 million.

Budget analyst Pete Bejarano said the drivers are state funding that is not keeping pace with costs, declining enrollment, and rising payroll and PERS expenses; utilities and insurance also increased. He said payroll costs are more than 4% higher and that a single day of district operating expenses equals about $710,000. Klinger noted the district has already taken $8 million in cuts last year, so the two-year cumulative reductions range from roughly $15.5 million to $21 million under current scenarios.

Klinger and staff described the complexity and permanence of any reduction-in-force (RIF) decision. “A RIF process is so complex with so many moving parts that they can only do it once,” the superintendent said, explaining the trade-offs of cutting deeper now and adding back later. Board members asked whether cutting school days had been considered; staff said that is a short-term fix and not the preferred approach for structural problems.

Staff described how they are prioritizing systemic savings over one-year fixes and emphasized use of guiding principles and equity questions when shaping reductions. The district reported more than 750 responses to recent community surveys and held in-person and webinar outreach to surface priorities before reductions are finalized. Board members asked for clearer counts of personnel impacts and for RIF presentations to show how many positions by school or department would be affected.

The board set budget committee meeting dates for April 29 and May 13 to align review and public engagement with the upcoming budget timeline. Klinger said notices to staff about intent to return are due March 16, with a response window ending April 15, and that staff notification about final RIF decisions is expected at the end of April under the district’s timeline.