Molalla River School District Superintendent Tony Mann recently offered his thoughts on the 2025-06 budget and beyond. (File Photo)

‘No cuts to programs or staff positions’ for the next school year budget

With the 2024-25 school year coming to a close, the Molalla School District has been eyeing the “what comes next” for the 2025-26 school year for some time.

Fortunately, while economic pressures and uncertainty at the local and national levels are cause for concern, it looks as though the Molalla River School District will head into this next fiscal year with things looking very similar to the recently completed school year.

According to Andrea Watson, the MRSD public information officer, the next fiscal year will see “no cuts to programs or staff positions.”

“The key points are that financial pressures are building – lower revenues and higher costs – that are currently being addressed by using reserves, relying on long-standing conservative financial management, and looking for ways to reduce costs by 2027,” Watson added.

In his recent budget message to the Molalla River District Budget Committee members and local citizens, MRSD Superintendent Tony Mann laid out some of what’s been happening and what’s to come.

“This year’s budget reflects a continued environment of constrained resources and growing needs,” Mann noted. “Inflation has placed upward pressure on operating costs, including materials, services, and employee compensation. Public Employees Retirement System (PERS) contributions continue to rise, and federal funding has declined from prior pandemic-era levels. Notably, key revenue streams such as early literacy grants and Title II-A support have been reduced, compounding the challenges of maintaining service levels.”

Additionally, Mann noted that the proposed budget is built on the March/April 2025 State School Fund proposal of $11.36 billion, with 49% of the biennial allocation anticipated in the first fiscal year.

“Local revenue is projected to total just over $12.1 million, an increase of $540,000 over the prior year,” he said. “Special revenue grants are expected to decline from $4.6 million in 2024–25 to $4.3 million in 2025–26. Enrollment is projected to decrease slightly, and long-term planning must account for continued cost escalation and the eventual expiration of PERS bond offsets in 2027–28.”

Despite the multiple challenges, Mann said that the 2025-26 budget is designed to preserve instructional integrity, maintain essential student supports, and meet the district’s goal of ending the fiscal year with a projected ending fund balance of $4.5 million, which is $1.1 million above the Board’s minimum threshold of 8%.

“We remain steadfast in our commitment to fiscal responsibility, student success, and continuous improvement,” said Mann.