Eugene School District 4J is projected to spend more than $30 million in reserves just to make ends meet this school year. 4J has been a strong steward of public funds, building the reserve to cover costs in times like this. However, 4J is facing numerous complicating factors: a continuing decline in birth rates and enrollment, increased staffing and PERS retirement costs, and complete termination of federal COVID-relief funds. As a result, 4J must pare down its spending to better match resources provided by the state and stabilize services.
Starting last month, the Finance Department embarked on a 16-stop Budget Roadshow across the district that explained 4J’s current budget situation. You can view this information in three ways:
Interim Superintendent Colt Gill will present up to $25 million in reductions to the school board and Budget Committee in March. These reductions are necessary to ensure that 4J continues to operate within its means while prioritizing student learning, equity and safety in light of changing financial realities.
Reduction Impacts
We recognize that budget reductions impact our students, staff and families. Every position, program and resource contributes to student success, and while these adjustments are difficult, they also reflect our commitment to protecting our highest priorities.
While the reductions are substantial, we do not anticipate involuntary layoffs at this time. Staffing reductions will primarily happen through attrition – opting not to fill vacant positions, and taking advantage of planned retirements and resignations. More than half of the proposed reductions will come from non-staff expenses, such as supplies, materials, contracted services and operational costs.
However, we understand that staffing shifts will impact schools, departments and staff members. Some employees may need to transition to different schools, programs or roles. We deeply appreciate the dedication, flexibility and resilience of our educators and staff as we navigate these changes together.
"Every person in every position and every resource we invest in plays a vital role in serving our students. We know these reductions will have an impact, and we do not take them lightly,” Gill said. “As we navigate this challenge, our commitment remains to keep student learning, well-being and equity at the center of our decisions. While funding realities require us to adjust, we will continue working together to support every student, every day."
Why are Reductions Necessary?
Over the past four years, 4J strategically expanded staffing by 37 percent, in part, through the use of temporary federal COVID relief funds. These funds allowed us to reduce class sizes, provide additional mental health support for students, and enhance instructional coaching. With these funds now expired, the district must adjust spending to align with ongoing revenue.
ENROLLMENT VERSUS STAFFING, 2015-2029
While 4J extended these resources longer than many other districts in Oregon, we now face financial challenges similar to those affecting school systems across Oregon. We recognize that every reduction impacts our ability to provide the best possible outcomes and experiences for students. These decisions will not be easy. However, the proposal being put forward is designed to protect our highest priorities—centering student equity, learning, mental health and safety through our budget values framework.
Complicating Federal Impacts
These reductions come at a time when we are faced with uncertainty about the continuation of federal funds that are targeted to support some of our most vulnerable populations including students with disabilities, Native American students, students from migrant families, houseless students, emerging bilingual students, and economically disadvantaged students. The district receives millions of dollars annually in federal funds to support learning and provide school meals, after-school and summer learning opportunities, safe routes to school, Career and Technical Education programs, teacher pathways, early learning, and more.
The district is taking action to secure existing federal funding by joining in a lawsuit with the American Federation of Teachers and other partners to challenge the legality of a February 14, 2025, “Dear Colleague” letter from the U.S. Department of Education, including the district’s retention of Democracy Forward to represent it on a pro bono basis.
Looking Ahead, Sharing Your Voice
This year, there will be fewer positions available, and some employees may need to transition to new roles, schools, or programs. We acknowledge the uncertainty and emotions this may bring, and we are committed to providing support during this transition.
Looking ahead, the proposed reductions will be presented to the Budget Committee in March. The process will include multiple opportunities for review, input and refinement:
- March 11 and April 15, 22, & 29: The Budget Committee will review and refine the proposal and approve a budget for the school board to consider and adopt
- May 7: The school board will hold a public hearing on the approved budget
- May 21: The board plans to adopt a final budget, with a required deadline of June 30
Public input remains a vital part of this process. Each Budget Committee in April and Board meetings in March, April, May, and June will include opportunities for public comment. These can be difficult and emotional topics to consider. We encourage our community, students, and staff to share their perspectives in caring and kind ways. Every program and effort in 4J holds value, we’d prefer to hold on to all we have. We understand that these are challenging times, and we are committed to navigating this process with transparency, care, and a steadfast focus on supporting our students and staff.
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