Parkrose SD 3 committee pre-approves $76.79 million budget, sets levy rate as leaders warn of 2025-26 "budget cliff"

The Parkrose School District Budget Committee approved a proposed FY2024-25 budget totaling $76,788,893 and a property tax levy at $4.8906 per $1,000 for the general fund, followed by action to authorize $3,613,181 for refunded bond obligations. The votes were recorded as approved with no nays or abstentions.

Superintendent (Speaker 3) and the districtbudget officer (Speaker 4) told the committee the budget is "balanced" under Oregon budget law but depends on one-time resources and internal transfers. The superintendent said the district will use $1,000,000 from the general fund ending balance and $1,000,000 from the Thompson fund to hold staffing and programs steady for one year; absent further revenue, officials warned of "a budget cliff" requiring significant cuts in fiscal year 2025-26.

Why it matters: district leaders said per-pupil state funding falls well short of local costs. The superintendent noted Parkrose receives about $10,463 per student while total expenses are roughly $15,000 per student; special education costs alone run about $9,000,000 annually, more than 22% of the general fund. To avoid immediate layoffs this year, the committee approved using the one-time funds and shifting some staff costs to the Student Investment Account (SIA) and other restricted grants. The district advised the community to consider a local option levy this November that staff estimate could raise approximately $3,500,000.

Key details: the districtall-funds budget is $76,788,893, with the general fund proposed at $41,269,705 (an 11.5% increase year over year driven largely by transfers and payroll step increases). Staff identified major budget pressures as pension (PERS/OPSRP) rate increases, higher fringe and payroll costs, uncertain property tax collections, and rising special education and transportation expenses. Staff said a late state school fund adjustment increased district revenue by roughly $1,000,000 this year because the state pays on the higher of two years' ADM for schools.

Reaction and next steps: board members repeatedly thanked staff for avoiding layoffs this year but emphasized that the shortfall is structural and will require community action. The budget now moves from the budget committee to the Board for final adoption at the board meeting in June; staff noted minor reconciling adjustments (about 1.2 FTE and small line items) that would be made between approved and adopted budgets but said they were not material.

Vote and formal actions: the committee passed a resolution to approve the FY2024-25 budget (aggregate $76,788,893) and separately approved the 2024-25 property tax rate and the refunded bond payment authorization. The motions were moved and seconded during the meeting and recorded as approved with no nays or abstentions.

What comes next: district staff urged community outreach and preparation for a local option levy campaign this fall to stabilize funding for staff and programs. The superintendent and board members outlined plans to engage community partners and volunteers to build support. The budget will proceed to the board for adoption and required public filings under ORS budget rules.