Budget committee recommends $111 million 2026–27 budget and sets tax rate for board adoption

At a budget committee meeting, the Three Rivers/Josephine County SD budget committee voted to recommend the proposed 2026–27 budget and to set the operating tax rate at $3.7262 per $1,000 of assessed value, forwarding the measure to the school board for final adoption on June 10.

The Superintendent opened the meeting with a budget message saying the district began the 2026–27 process facing “a projected $3,500,000 shortfall between our expected revenue and the cost to continue our current level of service,” and emphasized that the district avoided layoffs, furloughs and reductions in instructional days. The Superintendent said the budget process prioritized protecting staff and instructional time while positioning the district to increase enrollment.

Jeffrey Butler, the district's business manager, presented the budget overview and described the figures behind the recommendation. “We have an adopted budget of $102,000,000 and, for the ’27 year, we have a proposed budget of $111,000,000,” Butler said, attributing much of the revenue increase to the newly opened Applegate Valley Virtual Academy (AVA) while noting related pass-through expenses. Butler explained a recent Oregon Department of Education change to how high-cost disability funds are calculated and reconciled, which created a near-term budget burden for the district.

Committee members pressed staff on specific line items and operational costs. On transportation, the committee was told the district contracts with First Student (which handles maintenance) and that a fuel surcharge adjusts to market changes; committee discussion included the district's reported average of about 10,000 miles driven per day and an illustrative committee calculation of roughly $12,000 per day in fuel costs. Butler committed to a follow-up with the specific surcharge calculation.

The presentation covered fund-level detail: Butler outlined general-fund expenditures (instruction salaries and benefits as the largest component), a $2.4 million year-over-year increase in capital construction funding, and about $7.1 million in capital expenditures carried outside the 100 fund. He noted slides showing current-year taxes around $21,000,000 and identified several drivers of change, including AVA-related ADM revenue (presentations estimated roughly $7.7 million of additional revenue associated with AVA but noted corresponding expenses).

On program questions, Jessica Duran clarified federal grant uses: “Title I money” supports students while “Title II money cannot be spent on students, only on helping improve our staff,” addressing a committee member's question. Rob, the staff member responding on food service, described steps to reduce general-fund subsidies by expanding summer meals, weekly food boxes and packaging reductions; the committee heard that the district provides free meals to students in the district while some charter schools participate in parts of the program.

After questions and discussion, a committee member moved that the budget committee approve the proposed budget and set the operating tax rate at $3.7262 per $1,000; the motion was seconded and carried on a voice vote. The committee’s recommendation sends the proposal to the full school board; Butler reminded members the board is scheduled to consider adoption during a June 10 hearing.

The meeting recessed for a short break before the board meeting that followed. Staff said they will provide requested follow-ups (detailed 601 fund line items, the transportation fuel-surcharge specifics, and any additional backup requested by committee members).