QuickTake:

The district is entering the year with a $16.4 million structural deficit, unknown state funding levels for next fiscal year, a looming increase of pension costs and teachers union bargaining later this year.

Less than a week before students return to school, Eugene School District 4J administrators prepped board members for the daunting adult work ahead.

Administrators presented new district goals, as required by Senate Bill 141, also known as the 2025 Education Accountability Act. The law sets new accountability requirements for districts statewide, starting this year.

Board members also heard about anticipated budget challenges. Looking ahead to 2027-28 budget planning, not only will 4J face a continued structural deficit, but district administrators also will be contending with an unknown amount of state school funding that legislators will decide on during the 2027 legislative session, as well as increased pension costs and potential increases in employee costs from bargaining.

Associate Finance Director Bob Blyth of Eugene School District 4J presents to the board about impending budget concerns at the Sept. 2, 2026 board meeting. Credit: Lilly St. Angelo / Lookout Eugene-Springfield

Goal setting

Administrators presented 4J’s 2030 Performance Growth Targets in the state’s prescribed categories, as detailed in Senate Bill 141, which mainly revolve around attendance, graduation rates and test scores. Literacy and math levels are measured by the percentage of students who earn a proficient score on the annual state test:

  • Kindergarten-second grade regular attendance
    • Currently: 73.3% 
    • Goal: 79%
  • Kindergarten-12th grade regular attendance:
    • Currently: 67.2% 
    • Goal: 73.1%
  • Third-grade literacy
    • Currently: 46.2%
    • Goal: 57.9%
  • Eighth-grade math
    • Currently: 37.8%
    • Goal: 45.7%
  • Ninth grade on-track (based on credits earned for graduation)
    • Currently: 86.4%
    • Goal: 95.1%
  • Four-year graduation rate
    • Currently: 77.8%
    • Goal: 90%
  • Five-year completion rate
    • Currently: 87.7%
    • Goal: 95.1%

The district chose “academic growth” as its local, eighth goal, which it will measure through interim tests. Leaders will track the goals, and present results publicly at the end of the year. Administrators said 2026-27 will be an “implementation” year — they aim to only cover about 10% of their four-year goals this year, and ramp up to covering 30% of the goals each of the following three years.

SB 141 also requires districts to report interim testing results to their school boards three times a year. Administrators said they will present 4J’s first round of interim test data to the board in late October or early November.

Dan Farley, 4J director of technology, Carmen Xiomara Urbina, 4J chief of staff, and Brooke Wagner, 4J assistant superintendent. present about the district’s goals under the state’s new accountability law at the Sept. 2, 2026 board meeting. Credit: Lilly St. Angelo / Lookout Eugene-Springfield

Budget challenges

After cutting $27.7 million from its budget last year — resulting in the district cutting 268 full-time equivalent positions — 4J will face more cuts this coming budget cycle.

The district’s budget is running on thin margins this year. Reserves are budgeted to be right above the board minimum of 5% of the general fund, translating to about $13.7 million. Associate Finance Director Bob Blyth said the district is also entering the year with a structural deficit of $16.4 million, meaning it is spending $16.4 million more than it is receiving in revenue. This reflects the gap caused by the underestimating of district expenditures that ended up costing 4J one-time dollars this year.

Blyth rehashed how the district is covering these costs using $10 million in reserves from the facilities budget, $2.9 million from the sale of the Wells Fargo building and $3.5 million from the district’s fund balance, which is their general reserves.

The district is also contending with:

  • Unknown state funding for next year: The Oregon Legislature will meet in January for its long session, and lawmakers will determine school funding for the next two years. Blyth said to maintain the level of school funding next year that the district is relying upon, the Legislature would have to increase appropriations by more than 4.5%.
  • Enrollment decline: 4J’s enrollment is declining faster than other districts, which means the district will automatically receive less state money next year.
  • Biennium funding dip: Oregon schools get 49% of their funds the first year of the biennium and 51% of their funds in the second year, meaning 4J is currently on a higher-funded year and next year will naturally be lower-funded.
  • State tax revenue unknowns: Blyth said an Aug. 26 state forecast showed lottery revenues are projecting well, but corporate activity tax revenues are projecting poorly.
  • Pensions: The district’s contributions to the Public Employee Retirement System will rise this year.
  • Contracts ending: 4J’s teacher’s union and administrator employee group will also go into bargaining for new contracts later this year, likely resulting in higher employee costs.

Other board happenings

  • Immigration policy: Chief of Staff Carmen Xiomara Urbina presented a new policy required by the state about how districts interact with immigration enforcement and how they inform the public about these interactions. The district will pass its policy before the end of the month, per Oregon requirements.
  • School meal update: Jill Cuadros, director of nutrition services, presented the communication campaign her department has done to inform families about the district’s scaled-back free meal program this year and how to put money in students’ school lunch accounts. All students can get one serving of breakfast and one serving of lunch for free this year, but any servings beyond this will cost families. 4J is partnering with the Eugene Education Foundation and Metro Rotary for scholarship money to assist families who cannot pay. Food for Lane County will also partner with 4J to provide free granola packets available to students throughout the day. Cuadros said the district is also working with schools to build programs that send backpacks of food home to families in need on weekends.
  • A call for new budget committee members: The board launched its search for four new budget committee members.

Lilly is a graduate of Indiana University and has worked as a journalist at the Indianapolis Star and in Burlington, Vermont, as well as working as a foreign language teacher in France. She covers education and children's issues for Lookout Eugene-Springfield.