Forest Grove officials warn state chart-of-accounts overhaul will be costly; district urges delay and funding

Forest Grove School District staff told the budget committee May 21 that the Oregon Department of Education’s plan to revise the public accounting chart of accounts (PAM) will impose substantial, largely unfunded transition costs on local districts and smaller operators.

The presenter said the district has sent multiple letters to the Department of Education and the State Board outlining concerns and asking for accommodations, arguing the department is underestimating the time and expense required to retrain staff, rebuild internal workflows and redesign customized reports.

“There’s no way ODE can prepare materials that can account for all of those unique contexts,” the presenter said, urging legislators and the department to recognize the scope of district-level work required to convert local accounting systems into the new multi-digit account structure. The presenter also noted the state has delayed full implementation until summer 2028 but warned that districts will need to budget in 2027 for planning and software changes.

Committee members raised particular concern for small community schools that use off-the-shelf accounting packages (the presenter cited QuickBooks as an example) and for sponsored community schools whose state funding flows through the district; converting a 200-student community operator to a 26-digit chart-of-accounts will be especially difficult, staff said.

The presenter said vendors and the state have assured districts the technical conversion could be handled at no cost to districts, but committee members and staff said vendors will not rework custom reports and unique district workflows without charge; training and internal redevelopment costs will likely fall to local budgets.

District staff pointed to SB 41, the broader accountability bill that empowered the department to direct funding uses in some circumstances, as part of the motivation for the accounting changes and said the initiative is intended to give the state better visibility into school financials. Committee members said the state’s goal of transparency does not eliminate the need for adequate transition support.

District advocacy steps include three letters from the district to the state and outreach to regional board chairs and legislators asking for recognition of transition costs and more implementation assistance. Staff said they will continue to push for funding and clearer technical guidance as ODE proceeds with the chart-of-accounts rollout.