State releases budget update
![Photo of Salem State Capitol Building]([{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_1/v1770332671/ttsdschoolsorg/dgsvrneftzr0wk98zsxi/Screenshot2026-02-05at30307PM.png","width":256},{"url":"https://resources.finalsite.net/images/f_auto,q_auto,t_image_size_2/v1770332671/ttsdschoolsorg/dgsvrneftzr0wk98zsxi/Screenshot2026-02-05at30307PM.png","width":512},{"url":"https://resources.finalsite.net/images/f_auto,q_auto/v1770332671/ttsdschoolsorg/dgsvrneftzr0wk98zsxi/Screenshot2026-02-05at30307PM.png","width":770}])
State budget forecasters shared some good news this week: Oregon is expected to bring in a bit more money than predicted just three months ago. Still, schools and other public services face ongoing financial challenges.
The new forecast shows the state will collect about $106 million more in taxes during the 2025–27 budget period, mostly from corporations. Even so, lawmakers are trying to close a budget gap caused by changes in federal tax law, and they want to keep reserves for emergencies. That gap is estimated at about $650 million.
This news offers modest relief for the State School Fund, which is set at $11.4 billion for the current budget cycle and helps determine school district funding, including for TTSD. While it now seems less likely the fund will be reduced mid-year, uncertainty remains. Rising costs for pensions, transportation, food assistance programs, and Medicaid are expected to create pressure in the next budget cycle, making cautious planning essential.
Lawmakers may use rainy day funds and are considering a bill to reverse some federal tax changes, which could restore about $342 million. The short legislative session runs through March 8, and fast-moving budget decisions are expected. School advocates will continue pushing for stable funding, including at a lobby day on February 17.