Hood River County School District prepares for budget challenges next school year

At the board meeting, Newton and Chief Financial Officer Mark DeMoss presented an early budget forecast indicating the need to cut approximately $3.5 million from next year’s budget. This proactive step aims to ensure transparency and thoughtful decision-making about potential reductions.

Why budget cuts are necessary

Several key factors are contributing to the school district’s financial challenges:

Declining enrollment: Enrollment across public schools in Oregon is decreasing, reflecting statewide and national trends. This decline is attributed to falling birth rates and the limited availability of affordable housing in Hood River.

Loss of federal pandemic relief funding: Federal relief funds that temporarily supported increased staffing levels are expiring.

Rising costs: Inflation’s impact on labor expenses is a concern. Anticipated increases in the Public Employees Retirement System (PERS) rates will add $2.1 million to the school district’s costs for the 2025-26 school year.

Potential reductions in federal funding: Federal program budget cuts could further impact the school district’s overall financial situation.

Potential areas for budget reductions

While no final decisions have been made, the school district is considering reductions in the following areas:

Staff positions, including administrative, licensed, and classified roles.

School district efficiencies, such as instructional days, programs, operations, software, and administrative budgets.

If staff reductions are required, the school district will follow Reduction in Force (RIF) policies negotiated with licensed and classified unions. These policies consider factors such as seniority and other contractual obligations.

Next steps in the budget process

The HRCSD Budget Committee will meet on April 29; if necessary, a second meeting will be scheduled for May 6. The HRCSD Board of Directors will adopt the final budget on June 11.

Commitment to transparency and collaboration

In 2024, HRCSD faced a similar financial challenge, successfully addressing a $2 million shortfall through attrition without requiring RIFs. As the school district prepares for the upcoming budget cycle, the focus remains on prioritizing student learning, safety, and success while ensuring long-term financial sustainability.

Superintendent Newton acknowledged the uncertainty these discussions may cause and reiterated the school district’s commitment to transparency and community collaboration.

HRCSD is hosting staff and community listening sessions in January and February to gather input and address questions. Each school will hold a session specifically for staff, and school administrators or department directors will share details. Community members are encouraged to visit the HRCSD website, hoodriver.k12.or.us, for a schedule of listening session dates and additional information.