School budget committee looks at 2026-27; staff cuts expected

With rising costs, declining enrollment and flat state school funding, McMinnville School District expects to trim several positions to balance the budget for 2026-27, Superintendent Kourtney Ferrua told the budget committee at its first formal meeting Wednesday night.

The change will help “right-size” the district for the number of students enrolled, Ferrua said, noting that enrollment has reduced from about 6,700 in 2019-20 to just under 6,000 currently, a trend that is expected to continue.

McMinnville High School’s largest ever class, which had 630 students at the beginning of the academic year, will graduate in June. Comparatively, only 350 students started kindergarten this year, and smaller classes are expected in future years, she said.

Finance Director Jason Hall said the budget proposal uses a 2026-27 enrollment of 5,780, about 200 fewer than the current year. The projection is conservative but should be close, he said.

It’s important to be accurate in projections, he and Ferrua said, because state funding is distributed on a per-student basis. If a district projects too many students, it will not receive as much money as it expects. But projecting too few could mean not having enough money to provide necessary programming.

The administration’s proposed budget for 2026-27 also is designed to provide the best education and support for students, Ferrua said.

“Every decision we make” is done with students in mind, she told the budget committee. “We want them to leave ready for a strong future.”

The budget committee spent about two hours hearing about staffing plans for next year, along with expected enrollment, revenue and expenditures.

It will meet again May 20 to approve a budget proposal, which will move to the school board in June for final approval. The public meeting will start at 6:30 p.m. in the district office, 800 N.E. Lafayette Ave. It will be available via Zoom as well as in person.

The district’s proposed budget totals $154.6 million, which includes grant funds, nutrition services, insurance, special revenue streams, PERS debt and payments on past bond measures, in addition to operating funds.

The General Fund totals $104.8 million, which includes $59.3 million for instruction and $36.4 million for support. Hall said personnel-related costs constitute about 85% of the total budget.

The proposal would result in a $7.9 million unappropriated ending fund balance, which would be used only in an emergency and, if not used, would carry over to the next year.

Ferrua and principals from each level said next year’s budget will maintain class sizes at the district standard – a 20-student limit in kindergarten, 24.5 for grades 1 to 3; 25 for grades 4 and 5; middle school 29.5, and high school 30.5, the same as the current year.

In addition, it will provide mental health and behavioral support; continue the focus on early literacy to give students a strong start in elementary school; keep the elementary enrichment classes, which include music, library and a rotation of art, STEM and Spanish; and continue pathway programs and the secondary block schedule, which allows for longer periods so students can receive additional math and language arts instruction and time for hands-on classes or internships.

“It provides for long-term stability as enrollment declines,” the superintendent added.

The school board in April approved using a Reduction in Force action, if necessary, to cut staff to a level that fits the district’s enrollment and academic needs. RIF is defined by both state law and agreements with employee unions.

Kourtney said she wants to use RIF as sparingly as possible. She hopes to make most of the reductions — including about 47 teaching positions — through natural attrition, she said.

Administrators have been tracking the number of employees who plan to leave the district at the end of the school year.

By the end of April, the superintendent said, it looked like another five to eight positions would need to be cut through RIFs. However, she said, she has since received notices that two more are leaving, which could reduce the RIF number.

In addition to staff reductions, Ferrua said the district has worked this year to reduce costs and make every aspect of the district more efficient. For example, it changed bus routes, resulting in a 10% savings in that area.

District staff members use a “priority reduction ladder” to make such decisions, she said. As they examine programs and costs, they ask questions such as, “Is it essential to work? Does it impact students?”