| Oregon’s economy is strong. More people are working and more people are getting paid better for the work they do. But our state economists are guarded. That means we may again face a situation where tax revenues exceed forecasts. The “extra” money will come back to taxpayers in another kicker. That leaves lawmakers struggling to pay for the increasing costs of priorities like schools, continued investments in housing, public safety, and our roads.
I have written at length recently about the challenge facing our highways, roads and bridges. Gas tax income is falling as maintenance costs rise. Technically, road funds do not come from income tax revenues. But that could change as we work to fill potholes and clean landslides. This year we committed $19 million from the General Fund for winter maintenance, road striping, and clean-up.
I have also written about our efforts to build affordable housing, address homelessness, and secure funding for housing infrastructure like water and sewers. This year we approved a $376 million housing package that included infrastructure funding, a new revolving loan for middle-income housing, more money for homeless shelters and a boost to state rent assistance.
That brings us to schools.
In 2019, the Legislature passed the Student Success Act, which created a new tax on business sales in order to raise around $1 billion a year for primary schools (it’s actually generating closer to $1.5 billion a year). The Student Success Act was heralded as a watershed moment for solving the state’s long-running school funding dilemma.
In 2023, we passed a $10.2 billion K-12 budget which was an increase from the previous funding of $9.5 billion. The allocation was the largest in state history –and nearly identical to the amount school districts were demanding to avoid budget cuts.
Now we’re hearing that isn’t enough.
Superintendents in four Oregon school districts, including the two largest in Portland and Salem, called on state leaders to boost funding for public education, and saying school funding is a “crisis.” In Portland, a three-week teachers strike brought learning to a halt, as school officials insisted they did not have the money to meet educators’ demands. Meanwhile, Salem-Keizer schools said they were bracing for at least $70 million in budget cuts in coming months, as the district attempted to craft a new labor contract of its own.
You can read more about the complicated and conflicting views of Oregon school funding here.
The Governor and legislative leadership are now looking at a statewide conversation about school funding. The Governor said she plans to create a new office within the Oregon Department of Education to make budget information easier to understand and more transparent. Governor Kotek also said it’s time to consider whether Oregon needs a minimum statewide teacher salary. That would benefit rural communities that struggle to find and keep new teachers. Starting pay in Coos Bay is $32,000 but closer to $50,000 in Portland.
I do not sit on the legislature’s education committee and I am not an expert in education policy, but I see on a daily basis the role that our schools play not only in education but in holding our communities together and meeting so many basic needs for our neighbors.
How did we get to this point? Here is an illustrated guide and brief history of education funding in Oregon, created by Lindsay Ray. |
