Silver Falls to lay off more than 60 employees to save $8M for severe budget shortfall

More than 60 employees were laid off and dozens of other positions were eliminated through attrition this week at the Silver Falls School District.

Layoff notices began Wednesday and continued through Thursday, two days after the Silver Falls School Board approved the move to save $8 million for a reduced budget for the 2024-25 school year in response to a significant deficit.

The board first heard of a deficit at the district during a Feb. 26 work session. In the following weeks, board members and the public received a clearer picture of a district that overspent its revenue every budget year since 2021.

During Monday’s board meeting, interim superintendent Joe Morelock said reductions would likely represent 18% of licensed staff, 16% of classified staff and 23% of district positions.

Morelock has been superintendent since April 3 after the district entered an intergovernmental agreement with the Willamette Education Service District and tasked Morelock with providing "a stabilizing influence" on the school district. Former superintendent Scott Drue resigned suddenly on March 13, citing difficulties in his personal life.

As of Thursday, Morelock said notices affected 15% of school-based services and 23% of district services. Cuts included direct layoffs and attrition, meaning vacancies from resignations or retirements that have not been or will not be filled.

Totals provided by Morelock among school-based staff as of Thursday were:

• 17.5% of licensed staff representing 20 layoffs and 22 reductions by attrition
• 14.6% of classified staff representing 39 layoffs
• 14% of administrators representing 2 reductions by attrition

Totals for district services representing the central office, technology, maintenance, facilities and grounds, transportation not including bus drivers and food service were:

• 25% of district directors representing 1 reduction by attrition
• 50% of supervisory staff representing 1 layoff and 2 reductions by attrition
• 25% of confidential staff representing 1 reduction by attrition
• 13% of classified staff representing 2 layoffs and 1 reduction by attrition

Morelock told the board the proposed staff reductions would represent more than $8 million in savings. The district has been advised to cut next year’s expenditures by $8.8 million. They were also advised to cut its current budget by $1.2 million.

To do so, the board approved a calendar adjustment on April 22 converting May 3, originally scheduled as a staff development day, May 24, and the week of June 10, which would have been the last week of school, into furlough days.

The board is likely to discuss other potential reductions in the coming weeks. The board must approve and adopt its 2024-25 budget by June 30. It is scheduled to hold a budget hearing on June 26.

Dianne Lugo covers the Oregon Legislature and equity issues. Reach her at dlugo@statesmanjournal.com or on X @DianneLugo