Forest Grove School District budget leaders presented a proposed 2025–26 spending plan that includes $1,800,000 in general-fund reductions and net staffing cuts as enrollment stays below projections, and warned the committee that continued declines will draw down district reserves.

The budget message, delivered by Dr. West (staff member) and finance staff member Eileen, said the reductions are intended to preserve core student services while keeping the district solvent through the end of the current biennium. "This proposed budget includes a $1,800,000 reduction in general fund expenditures," Dr. West said during the presentation.

Why it matters: Oregon school funding is largely enrollment-driven. Forest Grove leaders told the budget committee that steady enrollment losses have reduced state revenue under the state formula; without changes in revenue or spending, the district’s multi-year forecast shows reserves declining. Committee members were told the proposed budget maintains an 11.2% ending general-fund balance but carries a plan that spends some savings this year.

Most important facts

- Planned reductions: The proposed budget incorporates $1,800,000 in general-fund reductions. District leaders said about 54% of that reduction is at the district level and 46% is at the school/building level.

- Staffing and FTEs: The budgeted general-fund full-time-equivalent (FTE) total is 17 FTE lower than the prior year’s adopted budget. District staff said the reductions include an earlier adjustment of 8.3 classroom FTE made in response to enrollment loss, and that the district intends to rely first on attrition, retirements and unfilled vacancies to minimize layoffs.

- Fund balances and projections: The presentation showed roughly $240,000,000 in total district resources across all funds, with general-fund resources of about $101,900,000 built into the proposed budget. The beginning fund balance rolled forward into next year was presented as about $14,200,000; the proposed budget projects a $9,800,000 ending fund balance (about 11% of general-fund appropriations). District staff said these reserves provide a short-term cushion but will decline if current revenue and cost trends persist.

- Forecasting and risk: Officials said they modeled a conservative state school fund assumption and flat enrollment for the projection; the multi-year forecast shows reserves approaching zero if the district does not sustain reductions, increase revenue, or see enrollment improvements. "We are spending our savings," Dr. West told the committee when summarizing the forecast.

- Negotiations and uncertainty: The budget includes estimates for cost-of-living adjustments and insurance increases that remain subject to collective-bargaining outcomes. District staff also flagged uncertainty about federal grants and potential reductions to federal programs such as Title I, special education and school nutrition.

Committee process, questions and next steps

Budget committee members asked for more granular department-level detail on some reductions (for example, the extent to which curriculum adoptions and professional learning are delayed) and requested clearer mid-year updates. Eileen said the district will continue to provide cash-flow and appropriation reports to the committee and the board and asked members to submit questions several days before the next meeting so staff can prepare detailed answers.

No formal budget appropriation was adopted at the meeting; Dr. West and Eileen presented the proposed budget as the document the committee will review and then recommend to the school board for adoption later this spring. Earlier in the session the committee approved the meeting agenda and the previously circulated 04/22/2025 minutes.

Ending note: District leaders emphasized the priority of protecting direct services to students while making reductions, and said they will return to the committee with more detailed backup and scenario modeling at upcoming meetings.