Published: May 30, 2023

The Joint Ways and Means Education Subcommittee officially bumped up the 2023-25 State School Fund to $10.2 billion on Tuesday, May 30. Education advocates are reasonably pleased because it’s far more than the Legislature initially offered and close to the $10.3 billion they sought.

In a typical session, Tuesday’s vote would mark the end of the State School Fund advocacy journey except the formalities of passage. The Senate Republican walkout, though, has added several layers of uncertainty.

Legislative Highlights has offered a weekly look at the State School Fund process, “Funding Oregon’s Future.” This year could require a few extra steps, but school leaders are confident districts will be fine in the near term.

The education subcommittee amended House Bill 5015 without discussion to add $300 million to the State School Fund. The bill now goes to the full Joint Ways and Means Committee with a “do pass” recommendation.

Republicans have proposed increasing the fund to $10.4 billion, but they can’t do it without Democrats’ help. HB 5015 is likely headed to the House for passage at $10.2 billion. Then it gets murky.

Senate conservatives have denied their chamber a quorum to do business since May 3, mostly over bills on gun control and abortion and transgender health care. Eight Republicans and two who caucus as Independents but align with Republicans are showing no signs of coming back anytime soon. They have missed so many sessions that they will be prohibited from running for their offices again under a 2022 ballot initiative. Republicans have indicated they will challenge the law, and they have little left to lose by remaining out.

Any bills not passed by the Senate before the session ends are dead, including HB 5015. Republicans have said they will come back June 25, the last legal day of the session, to deal with budget bills and bills they consider bipartisan. Democrats responded that they would not have the agenda dictated to them.

If the session ends without a state budget, Gov. Tina Kotek must call the Legislature back for a special session. The parties will have to agree on when that happens and what bills will be heard for anything to get done. The State School Fund bill will start over, but with Tuesday’s vote, support for at least $10.2 billion appears strong.  

Even without a budget, school funding is secure through at least September.

Earlier this month, the Legislature passed a continuing resolution to fund state agencies through Sept. 15 if budget bills are not passed. School districts will continue to receive payments, at a minimum, based on the $9.3 billion allocation for 2021-23. The Department of Administrative Services could also base district payments on the Legislature’s clearly intended funding for 2023-25, using either $9.9 billion or $10.2 billion.

The Oregon Department of Education is working with DAS to determine the amounts.

ODE Director Colt Gill said districts need to start discussions with unions and school boards about how they will operate until the Legislature passes an official budget. The uncertainty could create challenges for school districts, especially smaller ones that have less budget leeway, he said.  

“School districts will not have access to the historic investment proposed by legislative leaders,” Gill said. “They will still be able to operate but will need to begin contingency planning.”

Regardless of the funding number, school districts’ cash flow should be fine through at least September, said Jackie Olsen, the Oregon Association of School Business Officials executive director. Schools will get two payments in July, plus potentially an August and a September payment, she said.

“This isn’t a time for us to be panicking,” Olsen said.

Most districts are deep in the process of passing budgets based on anywhere from a $9.9 billion to $10.3 billion State School Fund. Olsen said budget uncertainty right before the new year starts July 1 makes planning more difficult for schools, but districts are used to adjusting budgets throughout the year.

A $10.2 billion State School Fund, while less than some districts need to avoid shortfalls, moves districts to where the decisions are more manageable and they can continue the investments they have made in staff and programs, Olsen said.

OSBA Legislative Services Director Lori Sattenspiel said a $10.2 billion State School Fund is good but education advocates still need to keep a watchful eye on the Legislature if it gets back on track. End-of-session bills could add supplemental education funding as well as new school requirements that don’t have funding attached.

Kotek’s early learning legislative efforts offer an example. Legislative leaders have pledged $140 million for early learning initiatives, but it remains to be seen how that money will show up for schools and what they will be required to do.

Sattenspiel said $10.2 billion is adequate for most school districts’ current expenses but it falls short if the Legislature raises the service level requirements, such as with workforce pay increases or additional supports for early literacy.  

– Jake Arnold, OSBA
[email protected]

The previous story: Latest revenue forecast cheers education advocates