McMinnville School District is facing budget uncertainty in planning for the 2026-27 budget. This uncertainty is shared by districts across the nation as we face the collective impact of the steady decline in birth rates and student enrollment, rising costs and reduced federal funding.
MSD is fortunate to have a history of strong fiscal oversight and reporting, which has kept us on stable footing during the normal ups and downs of state school funding. Over the years, the district has maintained healthy reserves to meet unexpected downturns in the state budget. However, the significant reductions expected from the federal policy changes would slash state tax revenues, funding for education and state services, such as food assistance and healthcare, that help our students come to school ready to learn.
The expected financial impact of the federal funding cuts is expected to force difficult decisions in staffing and programs. MSD has decided to start the annual budget process earlier than usual so we can thoughtfully plan for spending cuts that align more closely with state resources and best provide for stability of services for our students. The Oregon Department of Education has also started their budget process early and is working to identify a range of proposed reductions for the Legislature to consider in the 2026 session. (Note: this is a planning document, not final funding allocations.)
We plan to start engagement sessions with staff, union groups, families, students and the community to gather feedback. We have also created a form to submit questions and will post updates and other information as we move through the process.
Our commitment is to remain financially sustainable with staffing levels that can support student learning, serve our most vulnerable populations, and provide safety and other services to students.
Budget Committee Meeting Calendar (to come)