Members of the Lebanon Community School District Budget Committee are wrestling with how to keep sports – particularly middle school football – intact, while cutting $2 million from the budget for the 2026-27 fiscal year, which starts July 1.
At their initial budget meeting, held Thursday, May 14, members made it clear that they were not comfortable with eliminating any sports, and they discussed how cuts to coaching staffs should be “equitable.”
The committee is composed of all five School Board members – Melissa Baurer, Loralee Engler, Mike Martin, Nichole Piland and Clyde Rood, and appointees William Barish, Jeff King, Roger Maurer, Anthony Morelos and Kelly Tucci.
They agreed to meet again at 5 p.m. Thursday, May 21, to further discuss the issues.
The School Board is scheduled to adopt a final budget following a public hearing on June 11.
Supt. Jennifer Meckley opened the meeting by acknowledging questions and concerns raised about various aspects of the budget, particularly the proposed cuts to athletics.
She reminded members and the audience that “this is a proposed budget”
“Throughout this process, our priority has been to keep reductions as far away from the classroom as possible, while also striving to make reductions equitable across employee groups and departments,” she said. “Balancing the many competing priorities within our district has been extremely challenging, especially because each area represents important and meaningful work that supports our students and community.”
Budget Proposal Overview
Meckley introduced the proposed $99.4 million budget, noting that it includes $2 million in cuts in areas such as personnel, which accounts for approximately 80% of the total, as well as departments and programs, due to a three-year decrease in student enrollment, similar to other school districts across Oregon.
“These reductions were not made lightly,” she said, adding that district leaders thoroughly reviewed the options, “carefully weighing the impact of every decision” with regard to the district’s five focus areas: academic achievement; safety and belonging for students, staff and families; maintaining financial integrity; maintaining effective facilities; and strengthening community connections.
Steven Prososki, the district’s director of finance, later fleshed out various aspects of the budget that were summarized in Merkley’s budget message.
The superintendent highlighted “several bright spots” from the last year: growth in early literacy, a high school graduation rate of just under 90%, and close to 80% participation in Career and Technical Education programs. Also, she said, preschool offerings were expanded over the past year, and the district continues to seek grant funding for its programs.
Meckley reported that the district’s unemployment liability, the legal obligation for employers to pay state and federal payroll taxes to fund temporary unemployment benefits for workers who lose their jobs through no fault of their own, have risen “sharply” from $39,641 three years ago to a projected $250,000 in 2026-27.
Also, she said, insurance premiums have nearly doubled over four years, from $463,838 to an estimated $891,393. Lebanon schools’ PERS liability has increased by $2.65 million since 2023, reaching an estimated $11 million for the upcoming year, she said.
The budget, Meckley said, includes an $4.88 million (7.49%) ending fund balance, which is intended to cover “unexpected expenses, economic fluctuations or enrollment changes” without immediately disrupting student programs and staffing. Also, she added, a “healthy” EBT strengthens the district’s financial credibility “and reduces the likelihood of more drastic budget reductions in future years.”
The School Board on April 9 authorized staffing reductions that, Meckley said, have resulted in the elimination of 4.25 certified positions (with the potential for a fifth) and 12 classified positions, all but one, she said, of which are being reduced through attrition.
Two District Office administrative positions, Chief Operations Officer and Director of Communications, have also been eliminated.
Other reductions include cuts to nutrition services, capital projects, athletics and transportation, all, she said, intended to limit “impacts to students and staff while responsibly addressing the district’s financial challenges.”
She said the district is likely to continue to face financial challenges due to declining enrollment, “which will likely require further budget reductions next fiscal year,” including more staff cuts. She explained that enrollment numbers dictate how much funding the district gets from the state: “Fewer students result in reduced revenue,” as the district’s costs rise.
She pledged that district staff will stay on top of changes and “we are committed to navigating these challenges with transparency, care, and supporting the success and well-being of every student we serve.”
Student Enrollment Declining
Prososki reported that the district lost 99 students between Oct. 1, 2025 and May 11 of this year, down to 3,773 students in buildings, plus 101 online.
“Enrollment is declining at an accelerated pace,” he said, adding that state funding of $11,611 per student for the upcoming school year, multiplied by a reduction of approximately 200 students over the past year, “that’s $2.3 million, which is equivalent to what our reduction is for 2026-27.”
He said that enrollment in state online virtual schools has risen 25%, from roughly 19,500 in 2024-25 to nearly 24,000 this year. Specifically, he noted that Baker Web, Fossil and Silvies, “which are well-known in our area,” together increased by 70% from 2022-23 to 2025-26, from 5,051 to 8,574 students.
“This is a trend that we’re continuing to see and it’s accelerating for some reason,” Prososki said.
Unemployment, Insurance and PERS
Prososki reported that Oregon SB 489, which expanded unemployment compensation parameters for classified staff, such as classroom aides, custodians and food service workers, in the state’s school districts, has increased Lebanon’s costs from $8,270 in 2022-23 to $130,107 this year, with $250,000 proposed for the 2026-27 budget year, a nearly 3,000% increase.
He reported that property and liability insurance premiums have risen from $390,270 in 2022-23 to $761,656 this year, with $892,093 proposed for 2026-27.
He said the district used to see “a larger gap” between actual PERS costs and what was budgeted – “up to $1 million), because some employees, who came to the district from non-government jobs, would have to wait a period to qualify for PERS, which meant the district didn’t have to pay until they did.
“What we’re seeing now is more staff retention and most new staff coming in already qualify on Day 1 for PERS,” Prososki said. “A lot of them are coming from another district. So that difference is shrinking.
PERS costs have risen from $8,354,272 in 2022-23 to $10,016,306 so far this year ($10,671,705 is budgeted) and the proposal for 2026-27 is $10,826,762.
“I think of utilizing those funds for new kids coming into our district that have needs that we need to support,” Prososki said.
Ending Fund Balance
Prososki reported that the district is proposing a beginning fund balance of approximately $8 million, which represents 12.27% of the total General Fund, which finances most day-to-day district operations and accounts for all financial resources that are not legally restricted or required to be accounted for in a separate fund.
The budget proposal includes the “one-time use” $3.12 million of the beginning balance funds to offset expenditures, leaving a $4.88 million for 2026-27.
Prososki noted that “careful budget management” has resulted in the $2 million in reductions the district is making for the upcoming fiscal year.
“Given these factors, I do not personally believe that there is additional capacity to further draw from the fund balance at this time,” he told the committee.
- The adjustments, which total $1,514,000, include $350,000 from the Textbook Fund, which has been built up over recent years and has enough for textbook purchases as needed this year, Prososki said, adding that adjustments to that fund will be made down the road. Other adjustments include:
- $50,000 from Capital (facility construction and improvement projects) Fund,
- $25,000 from the Athletic Fund. Prososki added that the district would need $100,000 to maintain programs at the current level of services and coaching “with expenses continuing to increase each year.”
- $225,000 from the Bus Replacement Fund – “We’re not buying any new buses this year,” Prososki said, explaining that $130,000 in leases the district is already contracted for will be funded from the General Fund.
- $50,000 in reductions from the Food Services Fund, money which, he said, would have funded the remodeling of counters at Seven Oak Middle School, which may not happen or may be delayed.
- The district’s debt service, which is $114,039 this year, will be paid off on June 1 of this year, which is another savings, he said.
He reported that one addition is $150,000 under the Unemployment Fund, which was not funded this year but Prososki expects will be necessary in the upcoming year.
Prososki noted that the district receives various grants that fund a wide variety of programs. Among those are Title I and II federal grants, which, he said, the district expects to be reduced by some $115,000. Typically, he said, rather than cut programs, the district finds funding via other General Fund sources.
Proposed Cuts to Athletics
Prososki said he met with the athletic directors and principals from both the high school and middle school to figure out how to cut $100,000 from the athletics budget for the upcoming year. The proposed reductions they came up with include:
- $35,000 from middle school football;
- $15,000 from middle school coach stipends;
- $25,000 from high school coach stipends; and
- Increasing athletics participation fees to add $25,000 to get to the $100,000.
“This is a big ask of the committee on how we want to handle that,” he said.
Multiple committee members recalled how they missed football before it returned to Seven Oak within the past 10 years, though they acknowledged that Lebanon has to deal with transportation costs due to the distance between its league rivals.
Piland and others noted that there are two alternatives to middle school tackle football in Lebanon, Pop Warner and “club” league youth football.
Costs for those range from $150 to $350, plus transportation costs for parents to ferry their kids to games. Both offer scholarships, committee members noted.
Meckley said the district cost per middle school football player totals out to $450 each.
Melissa Baurer said she was concerned that cutting football would reduce opportunities for students whose families may not be able to afford the youth football league prices.
“We don’t have a lot to do for kids in Lebanon,” she said, “and so this is taking one opportunity away from them.”
She also said she didn’t like increasing participation fees to $250.
“Other districts are waiving fees; we’re increasing them.”
Piland observed that football gives kids incentive to attend school and keep their grades up.
Piland and Baurer both questioned the cutting of the girls basketball position and the dance assistant position, while cheer, which had 35 participants this year to 13 for dance, retains three coaching positions.
“They’re keeping three coaches in cheer; dance is losing one coach. To me that’s just not equitable. That’s where my concern is,” Baurer said.
Piland echoed her concerns.
Meckley told the committee she was open to direction on what the funding priorities should be.
“If the committee and the board don’t want to make the cuts in athletics, we’ll have to find another lever to pull,” she said, adding that may mean further reductions to the EFB or staffing cuts.
“ I love athletics; kids need it,” she said. “But then we’re putting $400,000 in capital projects. How do you balance that? How do you reconcile ‘Well, I need to have money over here for this boiler and this roof and this fire alarm, and the community thinks we don’t take care of our schools – let’s just be honest, or do you take staff? It’s a puzzle,” she said with a mirthless laugh. “A big puzzle.”
“If we want to pause on any reductions, we could do that, and do them through the year,” Meckley said. “We’re just trying to find a way to have some sort of reining in of athletics. If we continue, this will be a million dollars the following year.”
Rood suggested that the community could provide volunteer help or funding, citing his own experience as a youth track coach.
“People like me are willing to step in, fill gaps,” he said, adding that he’d be willing to donate “out of my own pocket” to keep middle school students from paying higher fees.
At that point, it was time to begin the School Board meeting, so the budget meeting was adjourned to May 21.