Oregon Democrats propose record $9.3 billion schools budget
(The Center Square) – Oregon Democrats want record spending on K-12 schools as state lawmakers debate how to close educational equity gaps.
Between the pandemic and wildfire evacuations last fall, many students have lost considerable class time. State lawmakers want them to catch up with summer learning programs backed by Gov. Kate Brown. The curriculum for the $250 million proposal would be largely up to school districts to determine.
The summer learning programs package is part of a $9.3 billion two-year K-12 schools budget that Democratic lawmakers say will help low-income households hardest hit by the pandemic.
That $9.3 billion figure falls between the $9.1 billion schools budget proposed by Brown in December and the $9.6 billion budget backed by Oregon teachers. It’s about $300 million more than the nearly $9 billion the state Legislative Fiscal Office projects will cover the state’s current K-12 operating costs.
Legislative analysts project education costs will plateau as K-12 enrollment slows and pension contribution rates dip amid looming retirements. School districts pay an average 18% premium in payroll for retirement in the state’s current 2019-2021 budget. That rate is expected to drop to 14% by 2023.
Oregon’s K-12 schools are primarily funded with property taxes, lottery money, state general funds, and a small amount of federal grants. The 2021-2023 school budget would be supplemented with $200 million from the state’s $1.6 billion in cash reserves or “Rainy Day Fund.” It would also be propped up with a billion dollars in federal aid.
The $9.3 billion budget is based on state revenue forecasts from this spring that put to rest fears of COVID-induced budget cuts, which once stood at $4.4 billion a year ago. Last summer, state lawmakers pulled around $400 million out of the state education fund during a special session to balance the 2020 budget. The balance now stands at $415 million.
The multi-billion dollar education budget would bring Oregon closer to nationwide education spending levels. Federal data from the 2017 school year shows the state’s $11,900 per-student school spending fell 6% below the national average. Oregon has one of the lowest high school graduation rates in the nation.
Oregon’s 2021-2023 school budget, SB 5514, is scheduled to see a vote from the full Joint Ways and Means Committee at 8 a.m. on Friday.
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