Newberg board adopts 2026–27 budget after levy loss, outlines $5.7M in reductions and staff cuts

The Newberg-Dundee School District Board of Directors on May 26 adopted the district's 2026'27 budget (Resolution 2026-14), set a permanent tax rate of $4.6616 per $1,000 of assessed value and approved a $7 million ad valorem levy for debt service. All three measures passed by unanimous voice votes.

Superintendent Dave Parker framed the vote as a next step after the community defeated a proposed levy. Parker said the adopted budget assumes about $5.7 million in reductions to align revenue and expenditures and that the cuts will affect roughly 35 positions, including about 25 certificated positions and approximately 17.5 full-time-equivalent in-classroom teaching positions. "We've been planning for this; this budget reduces about 35 positions...we will be laying them off as of June 30," Parker said, adding that the district will work to treat affected staff "with care and dignity."

Business officer Nathan (Nate) presented the financial report for the period ending April 30 and described ongoing revenue risks. He said the district's projected ending fund balance has tightened (May projections showed about $659,000) and identified two main risk areas: property-tax collections and state school-fund adjustments. Nathan outlined unanticipated facility repair costs at Edwards Elementary and a recent downward adjustment to high-cost disability reimbursements from prior projections. "We're looking at an ending fund balance really around 700,000. I'm being very pessimistic here," he said, later noting May figures revised the estimate to about $659,000.

Board members asked for clarifications about the state adjustments that reduced the district's share of a fixed high-cost disability pot (which Nathan said yielded roughly 27 cents on the dollar this year due to higher submissions statewide) and about warranty timelines for bond-related facility repairs. Administration mentioned ongoing conversations with contractors and potential coding of some repair costs to non-general funds where applicable.

Parker said the board will reconvene and expand its boundary/consolidation planning to produce modeled options for financial and operational scenarios this summer, with the goal of developing actionable plans in August and decisions by early October. "This work started last summer...the committee worked hard," he said, adding that the district will also pursue state-level advocacy to address what he described as insufficient K–12 funding.

Votes at a glance:
- Adopt 2026'27 budget and establish appropriations (Resolution 2026-14): motion carried unanimously.
- Set permanent tax rate at $4.6616 per $1,000: motion carried unanimously.
- Levy ad valorem taxes for debt service: $7 million (debt service): motion carried unanimously.

Next steps: Administration will present spending-reduction scenarios and staffing implications to the board and the boundary/consolidation committee this summer and will continue to pursue state advocacy regarding funding for high-cost special-education reimbursements and other state-supported programs.