Is the Corbett Financial Crisis over?
No, we are still in a financial crisis. Teachers and staff are dealing with pay cuts, bigger class sizes, less staff, and fewer resources, while students miss out on opportunities like Spanish in middle school and choir. On top of that, we’re stuck repaying a loan with no financial safety net.
The current School Board failed to manage finances responsibly, created tension with staff, lacked transparency, and have been reluctant to put students first. To move forward, we need strong leadership and real solutions to rebuild trust and support our schools.
About this website
We are a committed group of parents, teachers, and community members who care about the future of Corbett schools. This website keeps the community informed about Corbett School District's (CSD) financial challenges and the School Board's decisions. Here, you'll find clear, factual, and up-to-date information on the district's budget issues, their impact on students and staff, and what they mean for the community.
For years, the School Board outsourced financial services to an employee from the Multnomah Education Service District (MESD). The budgets they provided did not accurately reflect the district’s financial deficits which the School Board failed to notice. It wasn’t until 2024, when CSD hired an in-house Business Manager, that these accounting mistakes were uncovered. Both MESD and CSD accept the responsibility for the CSD budget challenges.
In 2020, the School Board made a controversial decision to reduce student enrollment, which directly lowered the district’s annual revenue. While state and federal funding is often tied to student numbers, the School Board did not adjust spending accordingly, creating a financial gap.
The district relied on federal COVID relief grants to fund additional staff and programs, but when that funding expired, there was no long-term plan to replace it. The School Board did not adjust spending accordingly, so without an alternative revenue source, CSD struggled to cover the costs, contributing to the growing budget deficit.
At the December 2024 Board Meeting, the Board Chair stated that the current Board couldn’t have foreseen the budget crisis, attributing it entirely to accounting errors by the previous accountant. They encouraged the community to review past Board Financial Summaries, asserting there was no indication of the crisis and nothing the Board could have done to prevent it. After reviewing publicly available data from Board meetings, it is clear the board missed the obvious warning signs. The graph to the right shows the "Actual Ending Fund Balances" for the CSD General Fund from the Board Financial Summary packets published in 2021, 2022, 2023, and 2024. The graph clearly shows a steady decline in the fund balance year after year beginning in 2022, ultimately turning negative in 2024.
Source: https://meetings.boardbook.org/Public/Organization/1554
Ending Fund Balance from CSD Board Packets
In addition, the third-party independent accounting firm Umpqua Valley Financial reviewed the Corbett School District financials and presented its findings during the January 15th, 2025 regular board meeting. The graph that Umpqua Valley Financial prepared is provided to the right, and shows the same "Ending Fund Balance" trend as identified in the Board Financial Summaries presented to the board over the last 4 years.
Source: https://meetings.boardbook.org/Public/Agenda/1554?meeting=671039
Ending Fund Balance from Umpqua Valley Financial
These measures were necessary to navigate the financial crisis, but they also come at a cost— fewer resources for students, heavier workloads for remaining staff, and long-term debt.
The district laid off 3 teachers, 4 classified staff, and 3 administrators to reduce payroll costs. The loss of teachers and support staff deeply impacted both students and remaining staff, straining resources and increasing workloads.
Spending was restricted, limiting purchases of classroom supplies, technology, and facility maintenance.
Despite not being responsible for the financial crisis caused by the School Board’s mismanagement, teachers and staff selflessly took on the burden, accepting six furlough days and a 10% pay cut to help keep the district afloat and ensure students remained the priority.
Music instruction has been reduced, limiting opportunities for students to engage in arts education. As part of these cuts, the district lost a beloved and highly talented strings teacher, whose departure is deeply felt by both students and the community.
Spanish has been eliminated from the middle school curriculum, limiting students' access to early language learning opportunities. This reduction impacts academic enrichment and future preparedness, as students now have fewer options for developing bilingual skills before high school.
The budget crisis created uncertainty and stress for both students and staff and disrupted daily school life. Staff faced heavier workloads and pay cuts, while students lost valuable instructional time and support services. The lack of transparency and delayed decisions only deepened frustration, leaving many feeling undervalued, unheard, and uncertain about the future.
To stay afloat, the district borrowed $2 million from Multnomah Education Service District (MESD), offering short-term relief but adding to long-term debt. Link to letter of acceptance of the loan
Despite clear warnings from the superintendent, business manager, and community, the School Board resisted increasing enrollment—the only viable solution to restore staff and avoid another budget crisis. During a board meeting on December 18th, after a 5.5-hour debate and strong community involvement, the board reluctantly agree to raise enrollment for the 2025-2026 school year from 1,082 to 1,224 students to help stabilize funding.
The increase in enrollment for the 2025-2026 school year prevents further budget cuts, and allows for new investments in our schools. This positive shift means we can bring back 3 educational aides, hire an additional teacher, and start rebuilding financial reserves, ensuring stronger support for students, staff, and programs.
Corbett Sports is classified as "District 3A," but football is classified as "District 2A.” Corbett Sports will keep their classification even if CSD's student population increases to 1,224, as Corbett High School can take in 72 more students before reaching the threshold that changes classification.
The Corbett School Board plays a key role in managing the district’s finances, overseeing leadership, and keeping the community informed. However, years of relying on inaccurate financial reports with inadequate oversight as well as improper planning led to a multi-million-dollar deficit. Communication gaps further complicated the situation, leaving the community without timely updates or a clear path forward. By not fulfilling their core responsibilities the School Board’s mismanagement has directly impacted the quality of education and stability of Corbett schools.