Salem-Keizer Public Schools Superintendent Andrea Castañeda has proposed a $646.5 million general fund budget for the 2024-25 school year.

That’s about $21.5 million, or 3.4%, more than the current school year’s budget.

But it’s not enough to keep up with rising costs, said Castañeda, who blamed increasing personnel expenses and the loss of federal COVID-19 aid.

“Salem-Keizer’s 2024-25 budget reflects a predicted moment in Oregon and across the nation: The final, grim intersection of flawed and failing school funding policy and school systems attempting to meet the rapidly escalating needs of their students,” she said Tuesday night in her presentation to the district’s budget committee.

Castañeda took over as superintendent last July. This is her first budget in the district.

The proposal cuts the equivalent of 224 full-time teachers and 138.75 support workers.

“We acknowledge and grieve the pain of this budget, but we cannot allow ambivalence or hesitancy to interfere with our fiduciary and ethical responsibilities for Salem-Keizer Public Schools,” Castañeda said.

Decreasing enrollment in Salem-Keizer district, increasing costs

Salem-Keizer’s enrollment is projected to decrease again next year, from about 38,648 to 38,061 students. That’s about the same enrollment as during the 2006-07 school year.

Since 2006-07, the district’s staffing has grown 47% across all employee groups.

Students now are more difficult and expensive to serve, requiring more staff, Castañeda said.

“We are funded to provide an education,” she said. “But we are expected to provide medical care, solutions for food and housing insecurity, social work, laundry, crisis intervention, mental and behavioral health services, and more.”

In addition, special education costs are growing, and students and families are still suffering the impacts of the COVID-19 pandemic, she said.

Castañeda’s proposed budget includes $48 million for mental and behavioral health services, the largest amount in district history.

All-funds budget for Salem-Keizer Public Schools decreases

The general fund is the district’s main day-to-day operating fund.

Other funds include capital projects, grants and self-supporting services.

In all, the district plans to spend $1.1 billion next school year. That’s $187 million, or 14%, less than the current school year’s budget.

Much of that decrease is accounted for by reduced spending of a 2018 voter-approved construction bond. Spending in that fund will fall from $202 million this year to $46.2 million next year as construction projects wrap up.

The district also expects to get $46.7 million less in grants, including federal COVID-19 funding.

$60 million left unspent

Castañeda’s proposal will leave $60 million unspent in the general fund at the end of the 2024-25 school year.

That balance, which will be carried to the following year’s budget, has been controversial, with the district’s unions and some parents urging that it be spent to maintain current programs.

Castañeda has said the balance is necessary for the district to continue paying its bills in the event of unforeseen circumstances, such as delays in disbursement of state school fund payments.

The budgeted general fund carry-over is lower than it has been for at least five years, totaling 9% of planned spending. That falls within the school board’s target of 7% to 10%.

Public input opportunities

Now, the district’s budget committee, made up of the seven school board directors as well as seven appointed community members, will take public testimony on the proposed budget.

The committee will make a recommendation to the school board, which must approve the final spending plan before June 30.

Here are upcoming dates:

• 6 p.m. Tuesday, May 14: The budget committee will hear public testimony and will consider the proposal.

• 6 p.m. Monday, May 20: The budget committee will hear public testimony, will consider the proposal, and may vote on it.

• 6 p.m. Tuesday, May 21 and Wednesday, May 22: Tentative meetings are scheduled if further debate is needed before a vote. Public comment may or may not be received.

Meetings will be held in person at the district’s boardroom, at 2575 Commercial St. SE in Salem, as well as streamed live.

More information is available at https://salkeiz.k12.or.us/about/budget.

Tracy Loew covers education at the Statesman Journal. Send comments, questions and tips: tloew@statesmanjournal.com or 503-399-6779. Follow her on Twitter at @Tracy_Loew

This article originally appeared on Salem Statesman Journal: Salem-Keizer schools superintendent proposes ‘grim’ budget