Oregon’s education system faces critical challenges as the state grapples with allegations of underfunding its lowest-income school districts. Recent reports indicate that the state may be undercounting students living in poverty, which directly affects the funding allocations necessary for schools to operate effectively. This issue is particularly pronounced in the Reynolds School District, which serves many of Oregon’s most vulnerable children.
Concerns have been raised by leaders within the Reynolds School District, including Frank Caropelo, the district superintendent, and union leaders Jeffrey Fuller and Esper Farmer. They argue that the state’s focus on “accountability” does little to address the underlying problems of inadequate funding. Under Senate Bill 141, the Oregon Department of Education has been granted authority to intervene in local districts when they fail to meet performance benchmarks. Yet, the emphasis on accountability fails to remedy the chronic underfunding that has persisted in districts like Reynolds.
According to a report commissioned by state lawmakers and conducted by the American Institutes for Research, the funding disparities in Oregon’s education system are deeply entrenched. The analysis highlights how the state’s outdated funding formula inadequately reflects the actual costs of educating students with diverse needs, including English learners, students with disabilities, and those experiencing poverty. Such inequities exacerbate the challenges faced by Reynolds, where over three-quarters of students live in poverty.
The Reynolds School District, which encompasses five cities in East Multnomah County, is particularly affected by these funding issues. The district is struggling to meet the needs of nearly 10,000 students and 1,200 employees. Despite historical increases in state funding, these allocations have not kept pace with rising costs, leading to difficult decisions that impact both staff and students.
For the 2025-2026 school year, the district has been forced to make significant cuts, including reducing the school year by six days, which will result in students receiving less than the state’s minimum instructional time requirement. Additionally, approximately 200 layoffs have occurred over the past two years, and the district has resorted to unpaid furlough days for employees in a bid to balance its budget.
The funding formula, established over 40 years ago, does not accurately represent the current demographics of Oregon’s school districts. In Reynolds, the percentage of students from non-English speaking homes is about 50%, significantly higher than the state average of 19%. This disparity necessitates more specialized staff, such as English as a Second Language (ESL) teachers and language interpreters, than the existing funding formula accommodates.
The financial strain extends to special education, where the district spends millions annually above state allocations to meet legal obligations for students with disabilities. The current funding model does not reflect the reality of serving high-need populations, leading to labor-management conflicts and high turnover rates among staff, further complicating the educational environment.
Despite these challenges, the accomplishments of Reynolds students remain commendable. Many achieve acceptances to prestigious colleges, demonstrating resilience in the face of systemic obstacles. However, leaders in the district believe that significant changes are necessary to address the funding issues effectively.
The call to action is clear: Oregon’s Legislature must revise how it counts and funds students experiencing poverty and ensure adequate funding for special education and related high-cost services. Until the state addresses these fundamental issues, schools like Reynolds will continue to struggle under the weight of insufficient resources while being held accountable for outcomes that are often beyond their control.
As the conversation about education funding evolves, it is critical for state officials to align their accountability measures with a robust and equitable funding strategy that supports the needs of all students across Oregon.
