Eugene School District 4J

Outside=92%. Inside=8%. The adopted budget for 2025-26 cuts about $20.8 million in spending from the current year. Of that, $19.2 million (92%) is outside of schools and $1.6 million (8%) is inside schools. The "inside schools" cuts are made up of 12.0 licensed FTE across all elementary schools. The "outside schools" cuts include 13.5 licensed FTE, 4.75 classified FTE and 8.0 MAPS FTE from district offices ($5.125 million), and about $14 million in contracted services, materials, and deferred fund transfers. The adopted budget adds about $4.9 million in new spending on primarily special education services, for net cuts of about $15.9 million.

Measure 98, also referred to as High School Success, is now part of Integrated Guidance, which is a state grant. The district has recieved an updated allocation for 2025-26 that shows a reduction of Integrated Guidance funds of just over $1 Million in the current year. In addition to reductions shows for 2025-26, Integrated Guidance will see reductions for 2026-27 as well. 

As of this year, the district is not making adjustments to staff and will utilize Federal Forest revenue that was recently received to cover the shortage for 2025-26. Reductions will be made for 2026-27 however in addition to reductions in our General Fund.

Integrated Guidance funding from the state is heavily influenced by two main factors, the Corporate Taxes that the State of Oregon recieves as well as our enrollment numbers; both of which have reduced from original projections in early 2025.

For 2025-26, no reductions for school sports were made.

While retirement incentives can be challenging and expensive to craft, and are entirely voluntary, the district will reach out to employee groups to explore the option when planning for 2026-27 begins. There was not an opportunity to create a viable plan for the 2025-26 budget.

Members of the Eugene School Board, Budget Committee and 4J staff have consistently made clear that the district’s preference is to fund all programs and staff needed to support students completely: not only to not make cuts, but to add support for early literacy, students with special needs and other critical services. However, the district is limited by the funds it gets from the State of Oregon and the federal government. Eugene voters already have passed a Local Option Levy to give 4J as much extra funding support as allowed by state law. 

The best way for students and other supporters of K-12 education to make a difference is in telling Oregon’s state lawmakers, the Legislature, that Oregon schools need the most robust funding possible. That students still struggle after the pandemic and while extra staffing has helped improve the student and class experience, the loss of pandemic funding threatens those gains. Legislators in Salem who approve K-12 funding levels need to hear the kind of impassioned testimony from students and staff that the Budget Committee and School Board have heard in recent weeks. 

Find the Oregon legislators for your address, and consider emailing them to show your support for greater funding of K-12 to fully provide for our schools to support all students, including those with special needs. 

Insurance, Oregon Public Employees Retirement System (PERS), workers compensation, unemployment, Social Security, professional development, and 403b retirement account (tax-sheltered annuity).

All cash that the district has on hand is held in the State Government Investment Pool as well as outside investment accounts that are mainly bond-related ranging from 1-5 year investments. The district does hold cash on hand for transactions such as Accounts Payable, Payroll, and other payments that are made on a regular basis within our regular bank accounts. Our interest rates range for the Local Government Investment Pool adjust regularly and have ranged this year from 3.5% up to 4.6%. Our outside investments have a variety of rates depending on what type and how long that investment is. These ranges can be from more short term which can receive ranges of 3-4% up to 5 years which typically receive higher interest rates of 4-5%.

This year (2025-26), the district is spending almost $24 million more than its revenue and is using reserves to balance the budget. Last year (2024-25), the district spent about $30 million more then revenue that came into our General Fund. This use of reserves cannot continue indefinitely. If you reductions are made in the next budget cycle (2026-27), the district would illegally be in a negative balance position. Board policy requires reserves of at least 8 percent of expenditures. Over the next few years 4J must align its spending with its declining enrollment and limited/fixxed revenue.

Since 2021-22 the district increased staffing 37 percent, enabled by one-time federal pandemic relief funds. Those funds are expended and can't be renewed. District enrollment has continued to decline, which means less ongoing money from the state which makes up the bulk of 4J's revenue.  

Birth rates in our region have been slowly declining, entering kindergarten classes have been smaller than exiting senior classes. Also, high housing costs and low availability make it challenging for young families to move into 4J’s boundaries. 

District reserves grew in previous years when federal pandemic relief funds were available, and other district spending was less than projected while other incoming revenue was higher. 

The district listed the Wells Fargo building for sale in June 2024 and it is currently going through a due diligence period from a proposed buyer. The revenue from this sale could be used to offset some expenditures, however the proceeds from this sale are, again, only one-time funds that do not help the district in its long term strategy of start living within our means.

It doesn't. The current Executive Leadership team consists of the following unrepresented positions:

• Superintendent
• Chief of Staff
• Chief Operations Officer
• Director of Administrative Services
• Assistant Superintendent of Instruction & Access
• Assistant Superintendent of Support Services & Well-being
• Assistant Superintendent of Equity, Inclusion, & Belonging
• Director of Financial Services

These positions oversee the district's core functions and the positions have existed in various titles in 4J for more than 25 years. Compared to other districts in Oregon of similar enrollment (within 3,000 students), one has 10 executives, two have nine and one has seven.