Published: March 27, 2023

The Legislature has made its State School Fund intentions public. Now the public can let the Legislature know what it thinks.

A state budget framework released Thursday proposed $9.9 billion for the K-12 public education fund. Education advocates have told legislators that $10.3 billion is necessary for most school districts to avoid cuts.

Until now, state budget discussions have revolved around several possible amounts. Public hearings in the Capitol and meetings around the state will give local education officials a chance to share with legislators what $9.9 billion will mean for students.

“We want to keep doing what we are doing, and if they stay at 9.9, we won’t be able to,” said La Grande School Board member Bruce Kevan. “That’s the bottom line.”

Legislative Highlights has offered a weekly explanation of the State School Fund process, “Funding Oregon’s Future.” With the framework’s declarations, the process is entering a more active debate.

House Bill 5015, the State School Fund bill, had its first public hearing today, March 27. Kevan submitted testimony.

Kevan said last week that La Grande has been able to add “marvelous” offerings for students, such as expanded career and technical education, in recent years. That all comes crashing down, he said, if the Legislature doesn’t adequately maintain the State School Fund or if it dips into the funds coming from the High School Success Fund and the Student Success Act.

Kevan is the Eastern Region representative on the OSBA Legislative Policy Committee, a key education voice in the Legislature and communities.

Lori Sattenspiel, OSBA Legislative Services director, said it’s crucial for legislators to hear from local elected officials about the real cuts that would come from a $9.9 billion State School Fund.

“It’s important to show the needs in your area,” Sattenspiel said. “That’s how legislators prioritize who gets the money.”

On Thursday, the Joint Ways and Means Committee co-chairs released a budget framework. Besides pegging the State School Fund at $9.9 billion, the framework provides indications of the Legislature’s broader education funding goals.

The framework contends $9.9 billion is a $400 million increase to the “current service level,” the amount needed for schools to maintain current programs and staff. Education advocates say the state’s CSL calculations are flawed, relying on past trends. School business officials say $10.3 billion is reflective of contracts and cost increases school districts are reporting now.

The framework names education as a priority and attaches additional money to literacy, although it’s not clear yet if the funding will be sufficient to meet any new education requirements. The framework also uses the $1.5 billion corporate tax kicker refund to shore up the State School Fund. That leaves bills gasping for air that would have used that money for education issues such as facilities improvement or workforce shortages.

In general, the framework is pulled between tighter state resources and crises afflicting Oregon.

“By funding the SSF at $400 million over CSL and early investments in housing and semiconductor funding, we have really minimal resources available for any other bills, regardless of topic,” said committee Co-Chair Sen. Elizabeth Steiner, D-Beaverton, on Friday.

The Way and Means Committee will be holding budget-focused public hearings in Portland, Newport, Roseburg and Ontario, starting April 8. Sattenspiel encourages school board members to sign up to explain their needs; signup links are expected to be posted soon.

Sattenspiel expects legislators to wait to hear the state revenue forecast in May before settling on a final State School Fund number. She also says the budget has room for legislators to increase school funding while addressing issues such as early learning and workforce shortages.

Education advocates, though, want to make sure those bills’ costs are covered with additional State School Fund money or other funding sources.

“Unfunded directives from the Legislature, however well-intentioned, just erode schools’ ability to take care of students’ basic needs,” Sattenspiel said.

OSBA Board President Sonja McKenzie was among the witnesses today in the Joint Ways and Means Education Subcommittee hearing. A Parkrose School Board member, she let them know that at $9.9 billion her district would be cutting staff for special education, nutrition, transportation and maintenance.  

Jackie Olsen, Oregon Association of School Business Officials executive director, projects that the majority of school districts would have to cut programs, staff or days at $9.9 billion.

She would like to see stable funding from the Legislature to avoid big hiring and firing swings that disrupt students’ education and hurt staff morale.

“I know that $9.9 billion is not enough to meet the needs of our districts,” Olsen said.

– Jake Arnold, OSBA
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