Oregon Budget Forecaster Warns of Revenue Shortfalls and Adjustments Needed

The Beaverton School District is preparing for significant budget adjustments as it faces a projected $10 million reduction in funding over the next three years. During the August 26, 2025, School Board Retreat, district officials outlined a plan to manage a growing deficit while maintaining essential services for students.

The district's reserves, currently estimated at $178 million, are expected to decline sharply, potentially dropping to just under $100 million by the 2028 fiscal year. This decline raises concerns about the sustainability of funding for educational programs and services. Officials emphasized the need for ongoing monitoring and adjustments to the budget in response to state revenue forecasts, which are anticipated to be less favorable due to recent economic challenges, including the loss of 25,000 jobs in Oregon.

The district's financial strategy includes a cautious approach to budgeting, with a recommendation to regularly reassess funding levels based on state forecasts. This proactive stance aims to ensure that the district can adapt to changing economic conditions while avoiding excessive reliance on reserves.

As the district prepares for the upcoming budget cycle, officials will continue to engage with the community and provide updates on financial forecasts and potential impacts on school funding. The next state revenue forecast will be critical in shaping the district's financial planning and ensuring that it can meet the needs of its students and staff in the years ahead.