Commentary:The untold story of school funding in Oregon

When students walk through their classroom doors each morning, a day of learning is just the start of what schools provide. From meals to health services and academic interventions, districts have taken on expanded responsibilities because they know learning is deeply tied to a student’s well-being.

But as these demands grow, funding has not kept pace. Districts have long been asked to do more with less, and in Oregon, that approach is no longer sustainable. Schools remain committed to supporting every student, but they need the resources to do it.

The funding struggles Oregon school districts face continue to compound year after year. The Public Employees Retirement System, for instance, was designed with good intentions but without an adequate legacy formula to meet pension promises. At a district level, nearly 30% of state school fund allocations now pay for PERS liability with zero benefit to the students they currently serve.

In addition, policy mandates are often rushed through legislation without a thorough cost analysis, which can overlook the true financial impact on school districts. The new Paid Leave Oregon plan provides 12 weeks of paid, job-protected family leave, a valuable and much-needed benefit for educators. However, employers with more than 25 employees, including school districts, must cover 40% of the cost without any additional state support.

Finally, it’s crucial to take a closer look at Oregon’s enrollment decline to understand where students are going and what that means for funding, accountability and long-term system sustainability. Like many districts nationwide, Oregon is losing students to virtual and charter schools, which receive the same funding per child as brick-and-mortar schools but operate with lower overhead costs. In some districts, families who switch to virtual schooling receive up to $3,500 a year, which helps cover the cost of at-home technology.

Legislators can take a more deliberate and equity-driven approach to rebuilding funding structures, ensuring every school has the resources in place to help all students succeed.

Strengthening public K-12 and securing the funding necessary for meaningful change demands a unified front across the state’s 197 school districts. But a plan of that magnitude has to start with overcoming a steep learning curve. Over the past six years, 185 new superintendents have taken the helm of their districts and few have been immersed in the goals and purpose of the state’s Quality Education Commission and model or the history and complexities of its State School Fund formula.

Over the past year, the Coalition of Oregon School Administrators has met with 400 leaders across the state’s 12 different regions to deepen their understanding of school funding realities and work collectively to address ongoing challenges. Their insights will help COSA shape a strategic blueprint for districts that prioritize initiatives based on connections between education, workforce readiness and the state’s economic future, positioning superintendents to better partner with legislators on securing sustained investment in Oregon’s students.

One of public education’s most compelling success stories is how Oregon districts have simultaneously launched successful Career and Technical Education programs across the state. Cottage Grove High School, for example, offers pathways in computer science, manufacturing, culinary arts, health occupations and construction technology that prepare students for high-wage careers.

Research shows that students who complete at least three CTE credits graduate at a higher rate than their classmates, and states receive $10 in economic output for every dollar they spend on CTE programs. The results demonstrate that investing in students delivers high economic returns by building a strong workforce and lowering dependency on public welfare programs.

Along with CTE funding, spending on teacher recruitment and leadership development programs, wraparound services that address the whole child and targeted academic interventions that narrow the achievement gap is necessary.

At Oregon’s most recent Legislative Days, a state legislator said to me, “If I gave you $20 billion tomorrow, you would be back the next day asking for more.” What struck me at that moment is that many lawmakers have yet to understand the true cost structure of our current public education system. Classroom funding is increasingly stretched as districts work to meet rising obligations and mandated costs, creating real challenges in maintaining core services and limiting opportunities to fully support students’ needs.

Reversing this trend demands that legislators, state leaders, school boards and educators take an honest look at the challenges districts face and work together to define a clear, shared vision for the future we want for every student.

Krista Parent is executive director of the Coalition of Oregon School Administrators.

Oregon Capital Chronicle is part of States Newsroom, a nonprofit network of news bureaus supported by grants and a coalition of donors. Oregon Capital Chronicle maintains editorial independence. Contact [email protected].

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