SPS shares budget outlook and next steps

Development of the 2026-27 Springfield Public Schools operating budget is underway. The District is committed to utilizing a thoughtful, transparent, and collaborative process designed to ensure community resources are used responsibly.

While these conversations are always challenging, the District’s focus remains clear: supporting students, supporting staff, and maintaining the high-quality education our community expects and deserves.

As the process continues, the District is sharing an overview of its current financial outlook, how the budget is developed, and how the community can stay involved.

At this time, Springfield Public Schools is projecting a $7.9 million deficit for the 2026–27 school year. This represents an improvement from an earlier estimate of a $10.4 million deficit.

Several factors are contributing to the projected shortfall. Declining enrollment continues to reduce state funding. The District has also relied on one-time reserves to fund the 2025-26 school year. Rising costs, including salary increases, insurance, and operational expenses, continue to add pressure to the budget.

Like many districts across Oregon, Springfield has experienced declining enrollment in recent years. Because Oregon’s school funding formula is largely based on student enrollment, fewer students means fewer state dollars for school districts.

Developing the budget is a collaborative process that takes place over several months. Staff review financial data and projections to understand available resources. District leadership then draft a budget aligned with School Board goals.

The Budget Committee, made up of five School Board members and five community members, reviews the proposal, asks questions, and works with District leadership before forwarding a recommended budget.

The next official step in the process will take place on May 7, when the proposed budget is presented. The Budget Committee may meet up to three times to review the proposal and discuss adjustments. After that, a public hearing will provide another opportunity for community input. The School Board will then consider the budget for final adoption before the new fiscal year begins on July 1.

Approximately 79% of the District’s operating budget supports staffing. Because of this, financial decisions often involve difficult conversations about how resources are allocated.

Springfield Public Schools has made intentional investments over the past decade, based on research and best practices. As a result, the District has seen meaningful growth in academic outcomes and graduation rates. 

As the District works through these financial challenges, we must decide what to reduce. 

Over the past year, several steps have been taken to reduce costs:

• In spring 2025, staffing reductions were made related to enrollment. 
• In summer 2025, staffing reduction due to classified and administrative cost-of-living increases. 
• In January 2026, staffing reductions due to anticipated licensed cost-of-living increases. 
• In February 2026, the District implemented a spending and hiring freeze. 

Additional enrollment-related and rising cost reductions are being considered in spring 2026 as part of the 2026-27 operating budget process.

In the weeks ahead, District leadership will continue to carefully review options, use School Board goals to guide decisions, consider community feedback, and work with the Budget Committee to address the projected deficit.

The public is invited to provide feedback at any and all of our upcoming community forums:

• March 30 (Admin Building): 10 - 11 a.m.
• March 31 (Thurston High School):  6 - 7 p.m.
• April 1 (Admin Building): 1 - 2 p.m.
• April 2 (Springfield High School):  6 - 7 p.m.

As part of this process, Springfield Public Schools is asking the community to reflect on several  important questions:

1. Given our current reality, what do you believe has had the greatest impact on student achievement and success, and why?
2. How have these investments had positive impacts on historically marginalized students? (for example., increased access to learning, supports, and/or opportunities?)

The District will use feedback from staff, families, and community members to better understand priorities and help inform budget decisions as leaders work to address the projected deficit.

Get answers to more than 30 Frequently Asked Questions developed from staff-generated questions, comments, and suggestions collected during budget planning discussions.