Central Oregon School Districts Face Major PERS Contribution Increases

Central Oregon school districts are facing significant increases in employer contributions to the Public Employees Retirement System (PERS), with Bend-La Pine Schools projected to incur over $11 million in additional costs for the 2025-27 budget cycle. This increase marks a rise in the PERS rate from 17% to 21% of salaries, placing further strain on already tight budgets. The district has implemented a 10% cut in discretionary spending and anticipates cutting 120 staff positions in the coming school year. A failed local option levy has compounded these challenges, denying the district crucial funding needed to sustain educational programs after pandemic relief funds have ended. The uncertainty surrounding Gov.

Tina Kotek’s proposed $515 million in education funding leaves school districts in a precarious position as they begin their budget-making processes. District officials acknowledge that the upcoming PERS cost increases could negate any benefits from the proposed funding, creating a challenging financial outlook. Bend-La Pine's communications director has emphasized the need to understand the allocation from the State School Fund before finalizing the budget for the next biennium. As negotiations with employee unions approach, the district must navigate these financial pressures while prioritizing educational outcomes.