Understanding the School Budget

Understanding school finance begins with understanding the school budget, the impacts of Oregon’s property tax limitation ballot measures that were approved by voters in the 1990s and the state’s school funding formula.

In Oregon, the Local Budget Law and Oregon Administrative Rules set standard procedures for preparing, presenting and administering local government budgets. All government agencies, including schools, must follow them. In fact, no local public agency can spend money or levy taxes unless it complies with the Local Budget Law. (ORS 294.305 to 294.565)

The format of school budgets is determined by the Oregon Department of Education. Elementary/secondary school districts follow one format. Education service districts voluntarily follow the same format. Community colleges follow another prescribed format. However, both systems follow a program budget format with standardized charts of accounts for budgeting and accounting. (ORS 294.356)

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