Oregon Gov. Kotek suggests $515 million budget increase for K-12 schools

PORTLAND, Ore. ( KOIN ) — Oregon Gov. Tina Kotek is proposing a $515 million hike for the State School Fund that benefits K-12 education.

On Wednesday, the governor explained the increase would go into effect for the 2025-2027 biennium and support the current service level — which determines how much money the state needs to maintain its authorized education programs.

In a statement, Kotek noted school districts nationwide have experienced budget challenges because of “the expiration of federal pandemic relief dollars, declining enrollment, increasing costs due to inflation, and many other factors.”

She also noted her commitment to changing Oregon’s public school funding, which was announced after the Portland Association of Teachers ended their historic strike in late November 2023.

As part of her proposal, Kotek is suggesting a 49-51 split for the next two-year budget period instead of the 50-50 split that has been in place for the past decade. Her office said this would benefit school districts more than the former model because service levels are based on the funding available in the second year.

The proposal would also update the method state officials use to determine the cost of compensating teachers, administrators and other classified staff. Oregon currently bases compensation costs on the past 20 years of historical data, which has had a 98% accuracy rate.

Kotek is advising agencies to look at the past 10 years, instead, in hopes that they will show more accurate data.

Lastly, the governor wants agencies to monitor the estimated local property tax revenue in the second year of the biennium.

Currently, about 34% of the state school fund that goes toward districts stems from local revenue and 66% stems from state revenue. Kotek’s office reported that this practice fails to consider shifts in local property tax revenue, and therefore hinders the state’s ability to accurately record the available resources.

“We are working to be a stronger, more accurate and predictable funder of K-12 public education across Oregon,” Kotek said in a statement. “This effort is part of my priority to ensure we are moving the needle on improving education outcomes for our students, from improving early literacy rates to preventing learning loss to increasing graduation rates. And, ultimately it’s about more than just resources – it’s about the specific outcomes.”

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