Educators and students across Salem-Keizer School District are bracing to lose teachers next year, as the district plans cuts to the next year’s budget.
Superintendent Andrea Castañeda delivered her latest budget message on Tuesday, May 5, highlighting the district’s budget deficit and breaking down budget cuts for next school year.
“Although the reductions we are bringing into the 2026-27 budget will slow our expense trajectory, a slower revenue growth rate will continue to put pressure on our district to reduce expenses,” Castañeda wrote in the budget message.
In a press conference, Castañeda noted the financial challenges schools across Oregon are facing while adding that she feels “gratitude, pride and hope” for the district.
The message is an overview of next year’s proposed budget, which will be discussed by the district’s budget committee. After the committee completes deliberations, the budget will be sent to the Salem-Keizer School Board for adoption.
The district aims to cut $23 million from next year’s budget, which totals $1.12 billion. The general fund, which serves as the district’s primary operating fund, is budgeted at $675.5 million. This fund is primarily funded through money from the state and property taxes.
In March the district learned it would lose $14 million in revenue from the state, which it will offset by dipping into savings set aside for emergencies.
Staffing costs, including salaries, benefits and retirement contributions, are adding pressure to the district’s finances, and are expected to continue increasing during the 2027-28 school year.
Declining enrollment is another driving factor in the budget cuts. Schools receive state funding for each student, meaning schools generally lose money when enrollment declines.
By next year, the district expects enrollment to drop by 1,000. District communications director Aaron Harada said Keizer schools are projected to lose 300 elementary students and 360 middle and high school students in the next five years.
The district plans to save $14 million through staff reductions across 65 schools. This will include 120 positions district wide, split between teachers and classified staff such as instructional assistants.
Despite the cuts, costs for staffing are expected to increase by $6 million next school year, representing a 1% increase in the costs.
The district is avoiding laying off more teachers by cutting jobs that are already vacant and transferring teachers between schools. One classified employee will be laid off.
In Keizer, most schools are expected to lose one or two teachers while McNary High School could lose up to six. District officials emphasized that these numbers could change as schools adjust staffing levels based on the number of enrolled students for next year.
In middle and high schools, the staffing cuts could mean schools offer fewer sections of a class, or reduced elective options.
Elementary schools will feel less impact from staffing cuts as the district aims to reduce half of its 168 blended classrooms in effort to promote literacy instruction.
The district plans to spend roughly $11 million this year for a new reading curriculum in elementary schools.
“We could have paused it, but we never considered doing so, because as an investment in our staff and our students. It is overdue and necessary for the work that needs to come next,” Castañeda said
Last year, only about one-quarter of third graders tested at grade level for reading.
Other investments made by the district include professional development for teachers and $100,000 towards a program meant to boost emotional and social awareness among elementary school students.
The district expects expenses to continue outpacing revenue in coming years, and anticipates another round of “significant budget reductions” for the 2027-2028 school year.
“I believe this proposed budget is responsible, but it includes real risk and a stark warning for the future,” Castañeda wrote in the budget message.
CORRECTION: Superintendent Andrea Castañeda delivered the Salem-Keizer School District’s budget message on Tuesday, May 5. An earlier version of the story stated it was delivered April 5. Keizertimes apologizes for the error.
NEWS TIP? Contact reporter Krista Kroiss at [email protected].
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