Budget Matters

Budget News

December State Revenue Forecast & Legislative Advocacy Packet

December 2, 2024 - Oregon released its December Economic and Revenue Forecast on Wednesday, November 20.

The forecast showed significant surges that are projected to generate an additional $982.5 million in Net General Fund and Lottery Resources for the 2023-25 biennium, compared to the September 2024 Forecast. The projected personal kicker jumped to $1.792 billion (up from $987 million) and the projected corporate kicker grew to $1.024 billion (up from $882.8 million). Corporate kicker funds will be required to be spent on K-12 education during the 2025-27 biennium. None of the additional resources are available to schools in the current school year.

Growth in projected Net General Fund and Lottery revenues in 2025-27 is significant, with an increase of $2.337 billion from the September 2024 Forecast. This includes an additional $945 million in 2023-25 revenue being carried over to the 2025-27 budget cycle. By contrast, the Corporate Activities Tax, which is the funding source for the Student Success Act, saw a small dip in projected revenue for the 2025-27 biennium - a decrease of $40.1 million compared to the September Forecast.

Even with the positive revenue news, K-12 advocates still need to make a clear and convincing case to invest in our public schools to meet the increased, and increasingly complex, needs of our students in the 2025 Session. There are significant needs and requests for investments in affordable housing and homeless services, mental health and addiction programs, and other critical state services that will be competing for funding.

There is also a great deal of uncertainty at the federal level as we await potential changes to economic policies, federal taxes, potential new tariffs, and changes in funding for federal entitlement programs. These federal level economic policies can have significant impacts on Oregon’s economic outlook and the state budget in 2025.

While we await Governor Kotek’s recommended budget release in early December, we urge all constituents to review our Legislative Advocacy Packet for a concise history and overview of school budgeting in Oregon and its impact on the Hillsboro School District. Pages 2-5 provide this background information, and the appendices on pages 6-16 are the various advocacy materials we prepared earlier this fall.

Additional information:

2024-25 Budget Situation and Legislative Advocacy

October 14, 2024 - In mid-May of this year, school districts across the state received the final State School Fund (SSF) reconciliation for the 2022-23 school year and revised assumptions for the 2023-24 school year.

For context, and to simplify a system that is quite complex, public schools in Oregon build their budgets on two primary things:

Revenue - money they project to receive from the Oregon Department of Education (ODE) for the Average Daily Membership (ADM) of enrolled students, as well as a variety of other calculations that take into account teacher experience, students requiring additional services (migrant, housing instability, students with special needs, etc.), transportation reimbursement, timber funds, local property tax collections, and so on.
Expenditures - money they expect to spend on staffing, benefits, supplies, utilities, administration, service provision, etc.

ODE adjusts the ADM allocation multiple times each year as actual information is received from each of Oregon’s 197 school districts, with a final reconciliation completed the May following the completion of any given school year.

What HSD learned with the most recent reconciliation was that due to a decline in enrollment and revisions to the ADM allocation, we received a negative SSF adjustment for the 2022-23 school year of more than $4 million, as well as revised assumptions for the 2023-24 school year of nearly $3 million. After running the June payroll, which is when approximately 25 percent of the District’s expenditures are made each year, it also became clear that expenditures in 2023-24 were higher than anticipated in some areas, due in large part to factors outside of our control (e.g. inflation) and the unknown impact of new legislation and associated costs (e.g. Paid Leave Oregon). Because school districts are required to have balanced budgets each year, this burden was shifted to the 2024-25 school year. .

The full impact of these prior-year revenue and expenditure changes on the 2024-25 budget was not clear until after September payroll was completed and October 1 enrollment numbers were in. We now know that HSD is facing a shortfall of $9.5 million this school year. Administration has come up with a list of strategies for closing the budget gap in ways that do not directly affect students; however, there are some unknowns as we are still in the midst of bargaining with our licensed and classified employee unions.

Action	Savings/Revenue	Notes
Reduce building-based substitutes	$1,000,000	Limit to 1 licensed and 1 classified sub per building
Reduce staffing “fix-it” FTE	$488,131	Fewer licensed staff positions available to address “hotspot” issues in schools
Recapture 2024 summer programming set-aside	$360,000	Funding was available through the state’s Summer Programs Grant
Hold all building and department carryover	$550,000	Reduces discretionary spending
Reduce department budgets	$1,000,000	District-level departments receive a unilateral budget reduction
Repurpose 2024-25 Student Investment Account funds	$500,000	Use funds from the City of Hillsboro for after-school programs support
Hold on all non-student contact hires	$1,000,000	Reduce and/or redistribute work as people leave mid-year
Delay bus purchases	$1,200,000	This is still in line with the “gross polluter” replacement schedule
Reconfigure bargaining proposals*	$4,000,000	Non-regressive changes to current offers to bargaining units (*subject to negotiation)
Total	$10,098,131
Target	$9,519,920
Contingency	-$578,211

Information on bargaining proposals will be shared on October 21, once the next round of sessions occurs with both licensed and classified unions.

Aside from our diligence in managing the budget shortfall we are experiencing this year, a very important task for us is to advocate the Legislature for stable and adequate K-12 school funding in the 2025-27 biennium, a reduction in carve-outs from the State School Fund, and a correction to/avoidance of new unfunded mandates.

Detailed information on our Legislative Priorities is available in this document and in our leave-behind “recipe cards.”

Oregon’s June Economic and Revenue Forecast
June 3, 2024 - Oregon’s Legislative Fiscal Office released the June 2024 Economic and Revenue Forecast on Wednesday, May 29. Positive news was once again shared, with the forecast showing another surge that is projected to generate an additional $532 million in Net General Fund and Lottery Resources for the 2023-25 biennium (compared to the March 2024 Forecast). At this point, we are on pace to see revenues approximately 2.5% above projections, which would trigger a kicker in 2026. The personal kicker is currently projected at $582.2 million, and the corporate kicker (required to be spent on K-12 education during the next budget cycle) is currently projected at $558.1 million.

Another positive is that the economic outcomes for individual Oregonians have been noticeably stronger than the nation. According to Josh Lerner in the Oregon Office of Economic Analysis, Oregon’s per capita income and average wage - while still lower than the U.S. average - are at their highest relative point compared to the nation in decades. A record share of working-age Oregonians has a job, and the state’s labor force participation rate has risen the second most across all states.

As we look ahead to the 2025-27 biennium, we see cause for both optimism and caution. Growth in projected general fund and lottery revenues in 2025-27 is slowing down a bit and there are continued pressures on the budget to support affordable housing investments, enhance services and supports for homeless Oregonians, and address increasing needs and costs in human service programs. As an example, projected Net General Fund and Lottery Resources for the 2025-27 biennium have decreased $810 million since the March 2024 Forecast, due to accounting for expenditures made in the 2024 Session and forecast changes largely driven by the projected payout of the personal kicker in 2026, as noted above.

It always bears repeating that increased revenues during the current biennium do not translate to additional money being allocated to K-12 schools. Our next opportunity to secure stable and adequate funding for K-12 schools will come in the 2025 Legislative session when the budget is set for the 2025-27 biennium.

For additional information, please see the following resources:

Office of Economic Analysis Presentation to the Revenue Committees

Legislative Revenue Office Forecast Summary

Hillsboro School District Budget Matters webpage

Oregon’s March Economic and Revenue Forecast
February 19, 2024 - Oregon released its March Economic and Revenue Forecast on Thursday, Feb. 8. This forecast showed another surge that is projected to generate an additional $557.1 million in net general fund and lottery resources for the 2023-25 biennium, as compared to the December 2023 Forecast.

A majority of the increase is due to closing of books on the previous 2021-23 biennium. Unspent allocations from that biennium revert to the general fund, thereby boosting resources in 2023-25.

Interestingly, that amount is almost identical to what is projected (at this time) for the corporate kicker at the end of the 2023-25 biennium - $553.1 million. Those funds will be required to be spent on K-12 education during the next budget cycle.

The state’s reserve accounts grew as well (Education Stability Fund, Rainy Day Fund, and Cash Reserves) and are currently projected to reach $4.522 billion at the end of the 2023-25 biennium. This is equivalent to 17.6% of the general fund budget. It is worth noting that approximately one-third of the reserve amount is cash in the general fund and will decrease as the Legislature increases appropriations during the 2024 Session. Anticipated appropriations include those to affordable housing, mental health and addiction services, and programs to address the homeless crisis, as well as an additional $22 million for Early Intervention/Early Childhood Special Education.

K-12 school districts and advocates are also hopeful that the state will approve an investment of $50 million for summer learning programs in 2024. Although the increases are expected to be steady, there will not be additional funding for the regular State School Fund in 2023-24 or 2024-25.

Learn more in these documents:

Office of Economic Analysis Presentation to the Revenue Committees

Legislative Revenue Office Forecast Summary

Budget Update and State Revenue Forecast
December 4, 2023 - The month of November was dominated by talk about the inadequacy of state funding for K-12 education in Oregon. It was a primary reason cited by Portland Public Schools as they navigated negotiations with their teachers’ union, and also by Salem-Kaiser as it announced SKPS would be enacting $30 million in reductions immediately.

School funding is a very complex issue, so it’s not surprising that it is one where solutions can be a bit elusive. Governor Kotek has committed to deeply studying and bringing more transparency to how Oregon funds schools in the coming year, which is welcome news.

In the meantime, we have created a six-page document with graphs and narrative content that highlights some of the key features of Oregon’s funding for schools over time, how HSD spends its money, our current costs, and the various ways we demonstrate both fiscal responsibility and stewardship of taxpayer dollars. (Find this and more information on the Budget Matters page of our website.)

We do not currently anticipate any mid-year reductions to our budget in 2023-24, and the State’s December Economic and Revenue Forecast supports that belief. That said, costs for our district continue to escalate and we will be keeping that in mind as we develop a balanced budget for the 2024-25 school year next spring.

Legislators again received positive financial news, as the Forecast showed another surge in revenue that is projected to generate an additional $343.5 million in net general fund and lottery resources for the 2023-25 biennium. That said, the State’s revenue outlook appears to have stabilized. The revenue boom seen during the 2021 tax year is unlikely to be repeated, with collections expected to revert back to their long-term trends. Traditional gains in General Fund collections are expected to resume in the 2025-27 biennium and beyond. (Source: Josh Lerner, Oregon Office of Economic Analysis)

As we look ahead to the short Legislative Session in 2024, we are hopeful that resources will be allocated to summer learning programs, which have proven to be immensely helpful to HSD students as we continue to recover from the pandemic and work to ensure students have the supports they need to be successful in school.

Actualización sobre el presupuesto y pronóstico de ingresos estatales
Durante el mes de noviembre, se destacaron las conversaciones sobre la insuficiencia de financiamiento estatal para la educación de los grados K-12 en Oregón. Fue una de las razones principales citadas por Portland Public Schools mientras llevaban a cabo las negociaciones con su sindicato de maestros, y también por Salem-Kaiser cuando anunció que SKPS implementaría reducciones de $30 millones de manera inmediata.

La financiación escolar es un tema muy complejo, por lo que no sorprende que las soluciones puedan ser un poco difíciles de alcanzar. La gobernadora Kotek se ha comprometido a estudiar en profundidad y aportar más transparencia a la forma en que Oregón financiará a las escuelas durante el próximo año, lo cual es una buena noticia.

Mientras tanto, hemos creado un documento de seis páginas con gráficos y contenido narrativo que destaca algunas de las características clave del financiamiento para las escuelas en Oregón a lo largo del tiempo, la manera en que HSD utiliza los fondos, nuestros costos actuales y las diversas formas en que demostramos tanto la responsabilidad fiscal como la administración responsable del dinero de los contribuyentes. (Puede encontrar esta y más información en la página de Asuntos presupuestarios de nuestro sitio web).

Actualmente, no anticipamos reducciones presupuestarias durante la mitad del año para el bienio 2023-25, y el Pronóstico Económico y de Ingresos de diciembre del Estado respalda esta afirmación. Dicho esto, los costos para nuestro distrito continúan aumentando y lo tendremos en cuenta a medida que desarrollemos un presupuesto equilibrado para el año escolar 2024-25 durante la próxima primavera.

Los legisladores nuevamente recibieron noticias financieras positivas, ya que el pronóstico mostró otro aumento en los ingresos que se proyecta generará $343.5 millones adicionales en recursos netos del fondo general y de la lotería para el bienio 2023-25. Dicho esto, las perspectivas de ingresos del estado parecen haberse estabilizado. Es poco probable que se repita el auge de ingresos observado durante el año fiscal 2021 y se espera que las recaudaciones vuelvan a sus tendencias de largo plazo. Se prevé que las ganancias tradicionales en las recaudaciones del fondo general se reanuden en el bienio 2025-27 y en adelante. (Fuente: Josh Lerner, Oficina de Análisis Económico de Oregón)

De cara a la breve sesión legislativa de 2024, tenemos la esperanza de que se asignen recursos a los programas de aprendizaje de verano, los cuales han demostrado ser de gran ayuda para los estudiantes de HSD mientras continuamos recuperándonos de la pandemia y trabajando para asegurarnos de que los estudiantes reciban el apoyo que necesitan para tener éxito en la escuela.

HSD Earns Meritorious Budget Award
October 9, 2023 - HSD has earned a Meritorious Budget Award (MBA) from the Association of School Business Officials International (ASBO) for excellence in the preparation and issuance of our budget for 2023-24.

ASBO International’s MBA and introductory Pathway to the MBA programs promote and recognize excellence in school budget presentation. Program participation enhances school business officials’ skills in developing, analyzing, and presenting a school system budget. Participants submit their budget documents to a panel of school financial professionals who review the materials for compliance with the MBA Criteria Checklist and other requirements and provide expert feedback that districts can use to improve their budget documents.

Districts that meet the stringent program requirements may earn either the MBA or Pathway to the MBA (Pathway). Pathway is an introductory program that allows districts to ease into full MBA compliance.

This is the second year in a row HSD has earned the MBA, after having first met the criteria for the Pathway to the MBA in 2021-22. Congratulations and way to go to our Business Office team!

View the 2023-24 Adopted Budget on the Business Office of our website.

HSD obtiene el reconocimiento Meritorious Budget Award
HSD ha obtenido un reconocimiento llamado Meritorious Budget Award (MBA) de Association of School Business Officials International (ASBO) por su excelencia en la preparación y asignación de nuestro presupuesto para el 2023-24.

El reconocimiento MBA y el programa introductorio llamado Pathway to the MBA promueven y reconocen la excelencia en la presentación de los presupuestos escolares. La participación en el programa mejora las destrezas de los funcionarios de finanzas escolares para desarrollar, analizar y presentar un presupuesto del sistema escolar. Los participantes envían sus documentos presupuestarios a un panel de profesionales en finanzas escolares que revisan los materiales para comprobar el cumplimiento de la lista de verificación de criterios de MBA y otros requisitos, y proporcionan comentarios de expertos que los distritos pueden utilizar para mejorar sus documentos presupuestarios.

Los distritos que cumplan con los rigurosos requisitos del programa pueden obtener un reconocimiento MBA o Pathway to the MBA (Pathway). Pathway es un programa introductorio que permite a los distritos adaptarse gradualmente al cumplimiento de los requisitos del MBA en su totalidad.

Este es el segundo año consecutivo que HSD ha obtenido un reconocimiento MBA, después de haber cumplido por primera vez con los criterios del programa Pathway to the MBA durante el 2021-22. ¡Felicitaciones a nuestro equipo de la Oficina de Finanzas, así se hace!

Puede consultar el presupuesto adoptado para 2023-24 en la página de la Oficina de Finanzas de nuestro sitio web.

Budget and State Revenue Update
September 11, 2023 - On Sunday, Jun. 25 legislative leaders closed a session that was unprecedented for many reasons: a new Governor; over one-third of state lawmakers new to their positions; a record-breaking economic and revenue forecast; a walkout that lasted more than six weeks, bringing the Senate chamber to a standstill; and thousands of introduced bills.

Earlier in the spring, HSD had developed and adopted its 2023-24 budget assuming the legislature would approve state-level K-12 funding of $10.2 billion - the amount needed to meet our Current Service Level (CSL) - but also having a contingency plan in the event of a lesser allocation to minimize the impact to students and families.

Thanks to the tireless work of advocates and their collaborative efforts to engage and inform legislators, by session’s end the State School Fund (SSF) did stand at $10.2 billion for the 2023-25 biennium. Full funding for the Student Success and High School Success grants was also secured.

Oregon’s quarterly State Revenue Forecast for September was released on Wednesday, Aug. 30 and showed continued stable growth along with inflationary cooling. The near-term looks to be a post-pandemic “soft landing” for the state, with record revenues projected and reserves up. Although this does not change the 2023-25 appropriation to the SSF, the projections affirm the position of legislators to invest in Oregon’s PK-12 systems.

Therefore, thanks to good planning and strong stewardship, there are no operational reductions forecasted for the 2023-25 biennium. That said, there are a few revenue areas to monitor for impact. Most importantly, because the SSF - which provides our general fund operational budget - is driven by student enrollment, the Oct. 1 Enrollment Report will inform actuals vs. projections and the amount of money HSD will receive this year.

Stay tuned to Hot News and the Budget Matters page of our website for updates throughout the year, and reach out to District Financial Officer Michelle Morrison with questions.

Actualización sobre el presupuesto y los ingresos estatales
El domingo, 25 de junio los líderes legislativos cerraron una sesión sin precedentes por muchas razones: una nueva gobernadora; más de un tercio de los legisladores estatales son nuevos en sus cargos; un pronóstico económico y de ingresos sin precedentes; un paro que duró más de seis semanas y que inmovilizó a la Cámara del Senado; además de miles de proyectos de ley presentados.

A principios de la primavera, HSD había desarrollado y adoptado su presupuesto para 2023-24 asumiendo que la legislatura aprobaría fondos a nivel estatal de $10.2 millardos para la educación de los grados K-12, la cantidad necesaria para cumplir con nuestro Nivel de Servicio Actual (CSL, por sus siglas en inglés), pero también contando con un plan de contingencia en caso de una asignación menor para minimizar el impacto para los estudiantes y las familias.

Gracias al trabajo incansable de los promotores y sus esfuerzos colaborativos para involucrar e informar a los legisladores, al final de la sesión, el Fondo Escolar Estatal (SSF, por sus siglas en inglés) ascendía a $10.2 millardos para el bienio 2023-25. También se aseguró la financiación total para las subvenciones para el éxito estudiantil y para el éxito a nivel preparatoria

El pronóstico trimestral de ingresos estatales de Oregón para septiembre se publicó el miércoles, 30 de agosto y mostró un crecimiento estable y continuo junto con un descenso inflacionario. En el corto plazo parece ser un «aterrizaje suave» tras la pandemia para el estado, con ingresos récord proyectados y reservas en aumento. Aunque esto no cambia la asignación del SSF para 2023-25, las proyecciones afirman la posición de los legisladores de invertir en los sistemas de educación de los grados PK-12 de Oregón.

Por lo tanto, gracias a una buena planificación y una sólida gestión, no se prevén reducciones operativas para el bienio 2023-25. Dicho esto, existen algunas áreas de ingresos que se deben monitorear para determinar el impacto. Lo más importante es que debido a que el SSF, el cual proporciona nuestro fondo general del presupuesto operativo, está impulsado por la inscripción estudiantil, el informe sobre las inscripciones del 1 de octubre brindará información de los datos reales frente a las proyecciones y la cantidad de dinero que HSD recibirá este año.

Estén atentos a la publicación de Noticias de la Semana y a la página de Asuntos presupuestarios disponibles en nuestro sitio web para obtener actualizaciones durante todo el año, además puede comunicarse con el oficial financiero del distrito, Michelle Morrison, si tiene preguntas al respecto.

Oregon Revenue Forecast
May 22, 2023 - On Wednesday, May 17 members of the House and Senate Revenue Committees received the June Economic and Revenue forecast, which showed another surge in tax collections.

The state’s budget position has improved significantly, with a projected additional $2.32 billion in general fund and lottery resources available to spend in the 2023-25 biennium. This increase is due to a huge last-minute surge in revenue for the 2021-23 biennium that will be rolled over into the 2023-25 budget.

Net general fund and lottery revenues are up a combined $8.53 billion for the 2021-23 biennium since the Legislature adjourned in 2021 (up about $1.9 billion from the March 2023 forecast). Just like the last several forecasts, this results in record projected personal and corporate kickers and significant budget reserves for the state.

The next personal kicker (to be paid in 2024) will top $5.54 billion (up from $3.93 billion in March 2023).
The corporate kicker is now projected to be about $1.82 billion (up from about $300 million).
State reserve funds at the end of the 2021-23 biennium are projected to include $708 million in the Education Stability Fund and $1.35 billion in the Rainy Day Fund.
All case reserves will likely be rolled over into the beginning balance for the 2023-25 biennium - that total projected beginning balance is approximately $7 billion (up from $4.6 billion).
The Corporate Activity Tax (CAT) revenues that fund the Student Success Act showed a projected increase of $175.7 million for the 2023-25 biennium, which brings the projected total for the 2023-25 biennium to $2.779 billion.

This forecast presents an opportunity for Legislators to appropriate $10.3 billion to the State School Fund for the 2023-25 biennium, which has been determined as the amount needed to meet Current Service Level in every school district across the state. As a reminder, at the $9.9 billion level - included in the Governor’s Recommended Budget and the Co-Chairs’ Budget Framework - HSD would experience a funding shortfall of $10.2 million over the biennium.

Final budget decisions are coming in the next few weeks, so now is the time to make your voice heard in Salem! Visit the Budget Matters page of our website for our funding advocacy leave-behind sheet, a list of elected officials and their contact information, and the link to an interactive map to see which legislators represent you.

Pronóstico de ingresos de Oregón
El miércoles, 17 de mayo los miembros de los comités de ingresos de la Cámara y el Senado recibieron el pronóstico económico y de ingresos del mes de junio, el cual mostró otro aumento en la recaudación de impuestos.

La situación presupuestaria del estado ha mejorado significativamente, con una proyección adicional de $2.32 millardos en fondos generales y recursos de la Lotería disponibles para gastar en el bienio 2023-25. Este incremento se debe a un enorme aumento de última hora en los ingresos para el bienio 2021-23, los cuales se transferirán al presupuesto 2023-25.

Los ingresos netos del Fondo General y de la Lotería aumentaron $8.53 millardos combinados para el bienio 2021-23 desde que la Legislatura levantó la sesión en 2021 (cerca de $1.9 millardos por encima del pronóstico de marzo de 2023). Al igual que los últimos pronósticos, esto da como resultado un récord en la bonificación de impuestos personales y corporativos proyectados, así como importantes reservas presupuestarias para el estado.

La próxima bonificación de impuestos personales (que se pagará en 2024) alcanzará los $5.54 millardos (frente a $3.93 millardos en marzo de 2023).
Ahora se proyecta que la bonificación de impuestos corporativos sea de alrededor de $1.82 millardos (frente a $300 millones).
Se proyecta que los fondos de reserva estatales al final del bienio 2021-23 incluyan $708 millones en el Fondo de Estabilidad Educativa y $1.35 millardos en el Fondo de Reserva «Rainy Day Fund».
Es probable que todas las reservas se transfieran al saldo inicial para el bienio 2023-25, ese saldo inicial total proyectado es de aproximadamente $7 millardos (frente a $4.6 millardos).
Los ingresos del Impuesto a la Actividad Corporativa (CAT, por sus siglas en inglés) que financian la Ley de Éxito Estudiantil mostraron un aumento proyectado de $175.7 millones para el bienio 2023-25, lo que eleva el total proyectado para el bienio 2023-25 a $2.779 millardos.

Este pronóstico presenta una oportunidad para que los legisladores asignen $10.3 millardos al Fondo Escolar Estatal para el bienio 2023-25, que se ha determinado como la cantidad necesaria para cumplir con el nivel de servicio actual en todos los distritos escolares del estado. Como recordatorio, en el nivel de $9.9 millardos, incluido en el presupuesto recomendado por el gobernador y el marco presupuestario de los copresidentes, HSD experimentaría un déficit de financiación de $10.2 millones durante el bienio.

Las decisiones presupuestarias finales llegarán en las próximas semanas, ¡así que ahora es el momento de hacer que su voz se escuche en Salem! Visite la página de Asuntos presupuestarios de nuestro sitio web para consultar el documento Apoyo para el financiamiento de 2023, una lista de los oficiales electos y su información de contacto, así como el enlace a un mapa interactivo para saber qué legisladores lo representan.

Co-Chairs Budget Framework
April 3, 2023 - On Friday, March 24 the Co-Chairs of the Joint Committee on Ways and Means released their Budget Framework for the 2023-25 biennium. The framework cites four guiding principles for investments supporting the most critical issues facing Oregon: K-12 education, housing and homelessness, health care, and behavioral care.

Despite this acknowledgement, the recommended State School Fund (SSF) allocation aligns with the Governor’s recommendation of $9.9 billion, which is $400 million short of what districts across the state are advocating for to maintain current services.

If this amount is upheld by the legislature, HSD would experience a funding shortfall of $10.2 million over the biennium. While we could absorb this shortfall with remaining ESSER funds, that is not a sustainable or available strategy for future biennia. For context, a shortfall of this size is the equivalent of the following over a two-year period:

78 teaching positions OR
136 support positions OR
An increase to the ratio of licensed staff to students (average class size increase) of 3.92 OR
10.1 school days

The District’s 2023-24 Proposed Budget is designed to appropriate at Current Service Level with various spending plans if the SSF is less than needed. A management plan is in place to staff at lower levels of funding, and adjustments may occur in the second year of the biennium to provide stability of service to students.

Efforts to enact state-level initiatives like Oregon Paid Family Leave and additional instructional and operational requirements, as well as to recruit and retain quality staff, and provide stable services to students, all hinge on available resources.

The most recent State Revenue Forecast indicates Oregon has the resources to support K-12 education at the Current Service Level of $10.3 billion in the 2023-25 biennium, so advocacy toward increasing the allocation to that dollar amount will continue. Your ongoing support is very much appreciated.

Marco presupuestario de los copresidentes
El viernes, 24 de marzo, los copresidentes del Comité Conjunto de Medios y Arbitrios publicaron su marco presupuestario para el bienio 2023-25. El marco cita cuatro principios rectores para las inversiones que respaldan los problemas más críticos que enfrenta el Estado de Oregón: educación K-12, vivienda y personas sin hogar, atención médica y atención conductual.

A pesar de este reconocimiento, la asignación recomendada para el Fondo Escolar Estatal (SSF, por sus siglas en inglés) se alinea con la recomendación de la gobernadora de $9.9 millardos, lo que implica $400 millones menos de lo que los distritos de todo el estado están promoviendo para mantener el nivel de servicio actual.

Si la legislatura confirma esta cantidad, HSD experimentaría un déficit financiero de $10.2 millones durante el bienio. Si bien podríamos absorber este déficit con los fondos restantes de ESSER, esa no es una estrategia sustentable o disponible para los futuros bienios. Como contexto, un déficit de estas dimensiones es el equivalente de lo siguiente durante un período de dos años:

78 puestos para maestros o
136 puestos de personal de apoyo o
Un aumento en la proporción de personal con licencia por estudiante (aumento promedio del tamaño de la clase) de 3.92 o
10.1 días escolares

El presupuesto propuesto por el distrito para 2023-24 está diseñado para adecuarse al nivel de servicio actual con varios planes de gastos si SSF es menor de lo necesario. Existe un plan de gestión para el personal con niveles más bajos de financiación y es posible que se realicen ajustes durante el segundo año del bienio para brindar estabilidad en el servicio a los estudiantes.

Los esfuerzos para promulgar iniciativas a nivel estatal como el Permiso Pagado de Oregón para familias y los requisitos operativos y de instrucción adicionales, así como para contratar y retener personal de calidad y brindar servicios estables a los estudiantes, dependen de los recursos disponibles.

El Pronóstico de Ingresos Estatales más reciente indica que Oregón cuenta con los recursos para apoyar la educación K-12 en el nivel de servicio actual de $10.3 millardos para el bienio 2023-25, por lo que la abogacía para el aumento de la asignación a esa cantidad de dólares continuará. Su apoyo continuo es enormemente apreciado.

March Revenue Forecast

March 6, 2023 - Oregon’s March Economic and Revenue Forecast was released on Wednesday, Feb. 22. The forecast showed another surge in tax collections and an improvement in the state’s budget position with a projected additional $714.6 million in general fund and lottery resources available to spend in the 2023-25 biennium.

Net general fund and lottery revenues are up a combined $6.653 billion for the 2021-23 biennium since the legislature adjourned in 2021, resulting in record projected personal and corporate kickers and significant budget reserves for the state. The forecast now projects the personal kicker will top $3.93 billion (to be credited to taxpayers when they file their returns in 2024), and the corporate kicker to top $1.5 billion (required to be spent on K-12 education).

Although the additional revenue for the 2021-23 biennium is good news, the appropriation to the current State School Fund (SSF) will not be increased (no new funds for HSD in this school year). The District is operating within adopted appropriations for the current year, and is creating the 2023-24 Proposed Budget Documents to be shared at the Budget Committee meeting on Apr. 25, 2023.

The required current service level for schools in Oregon is $10.3 billion, and advocates will be sharing this message throughout the legislative session. For HSD, remaining temporary ESSER III and American Rescue Plan funds may be invested into additional services to students or leveraged to bridge any budget gaps over the two-year funding cycle (2023-25). This strategy will continue to stabilize operational systems and services to students and support the Strategic Plan’s priority areas.

Our only indication of where the State School Fund may land for 2023-25 is in the Governor’s budget proposal, which earmarked $9.9 billion for K-12 education. The Governor’s Budget is historically seen as a “starting point” from which the legislature begins its discussion on how to allocate funds for the coming two-year period. Her proposal had relied upon a diversion of $625 million in payments to the state’s reserve accounts (Education Stability Fund and Rainy Day Fund) to balance her budget. This may no longer be necessary, however, with the forecast’s identification of additional general fund and lottery resources available in 2023-25. We will continue to watch the legislative session for additional information about the State’s 2023-25 budget over the coming weeks.

Stay tuned to the Budget Matters page of our website for additional resources and ongoing updates.

Office of Economic Analysis Presentation to the Legislative Revenue Committees

Legislative Revenue Office Forecast Summary

Governor’s 2023-25 Budget Proposal

February 6, 2023 - Governor Kotek released her budget proposal for the 2023-25 biennium on Tuesday, Jan. 31. The Governor’s Budget is historically seen as a “starting point” from which the legislature begins its discussion on how to allocate funds for the coming two-year period. Her earmark of $9.9 billion for K-12 education is significantly higher than the Legislative Fiscal Office’s recommendation of $9.5 billion, but still leaves HSD short of what would be needed to maintain actual service level.

Along with many other large districts in the state, HSD is advocating for a statewide biennial allocation of $10.3 billion to K-12 education. At that level, we could maintain current services over the next two years, while still being able to invest our remaining pandemic recovery (ESSER) funds as they were intended - to support students who are struggling the most.

If the legislature upholds the $9.9 billion State School Fund (SSF) allocation, HSD would experience a funding shortfall of $10.2 million over the biennium. While we could absorb this shortfall with remaining ESSER funds, that is not a sustainable or available strategy for future biennia.

See the Budget Matters page of our website for additional information, resources, and updates on the budget development process throughout the spring.

Governor Kotek’s detailed 2023-25 Recommended Budget

Governor Kotek’s Budget Summary - 2023-25 Mission Focused

HSD 2023 Legislative Advocacy Leave-Behind