State Revenue Forecast brought mixed news regarding Oregon’s budget deficit
While the immediate projected shortfall for the current biennium has significantly shrunk from $372.7 million to $63.1 million, this improvement is temporary. The change is primarily driven by an unexpected surge in corporate tax receipts, money state economists warn is not a reliable long-term trend.
The Key Takeaway:
The underlying cause of the budget struggles, the long-term impact of the federal tax bill HR 1 is still in place. Legislative leaders, as quoted in the media, are acknowledging this uncertainty and the ongoing struggles of working families. Proposed Cuts Threaten K-12 and Higher Education.
Despite the temporary improvement in the forecast, the Oregon Legislature is moving forward with 5% budget reduction scenarios. If enacted, these proposals will lead to fundamental and devastating restructuring of education funding.
The total proposed impact on the Oregon Department of Education (ODE) and the State School Fund (SSF) is nearly $748.5 million in reductions.
State School Fund: $583.6 Million Reduction, significant decrease in per-pupil funding, affecting all districts.
High School Success Grants (Measure 98): $27.3 Million Elimination, Eliminated in Year Two (2026-27).
Educator Advancement Council: $26.7 Million Elimination, Eliminated in Year Two (2026-27).
Other Programs (STEM Grants, Educator PD, etc.): Millions in Eliminations, These key support programs are scheduled to disappear entirely in the 2026-27 school year, creating "cliff effects" that disproportionately impact rural and underserved communities.
GPEA Local Update
Mid-Year Cuts Unlikely: the legislature is set to make final decisions in February/March
Board Meeting Topics: Board meetings have included discussions on middle school boundary lines, proposal for week-long Thanksgiving break
Action Is Needed NOW: Contact Your Legislators
The proposed cuts are not final decisions, and coordinated advocacy is essential to scale back the most harmful elements during the upcoming 2026 legislative session. The OEA is urging members to act now.
The core issue remains HR 1, which provides special tax breaks for the wealthiest and biggest corporations, resulting in a $15 billion reduction in federal funding to Oregon over the next decade.
What You Can Do Today: Email Your Legislators
Use the OEA’s online action tool to email your legislators immediately and urge them to take action to fight back against these cuts and protect working families.
GPEA Public Statement on Changes to Library Material Selection Policy
The Grants Pass Education Association strongly opposes efforts by the Grants Pass School Board to take decisions about library and classroom materials out of the hands of highly trained experts and instead hand them over to a political committee made up largely of non-professional personnel. Not only would this decision place an enormous burden on librarians and other educators who are simply trying to do their jobs by requiring bureaucratic approval of all books and supplementary materials used in our classrooms, it would also create the potential for a highly politicized review process that could result in the censorship and banning of library materials.
We urge the board to abandon this attempt to circumvent trained educators, like librarians, who are experts in their fields and instead maintain a district policy the empowers educators to do the jobs for which they were trained and hired.