FAQs

The Corbett School District became a charter school district in 2009 as a way to address financial challenges and maintain funding. By converting into a charter school, the district was able to enroll out-of-district students and receive additional per-student funding, helping to stabilize its budget. The move was also intended to provide more flexibility in curriculum and operations while preserving the district’s academic programs.

About half of Corbett’s students live within the district, while the other half come from outside the boundaries. Welcoming out-of-district students has significantly boosted the annual budget, making it possible to expand programs, offer a wider variety of courses, and benefit all students. This approach has helped maintain a strong educational experience while ensuring the district remains financially stable.

Oregon public schools are primarily funded through a mix of state, local, and federal dollars, with the majority coming from the State. Here’s a breakdown of how it works:

• State Funding – The largest chunk of school funding comes from state income taxes, lottery revenues, and other state-level resources. This money is distributed to districts using a formula that considers student enrollment, special program needs, and district size. Because funding most heavily tied to student enrollment, districts with declining enrollment often struggle financially.

• Local Funding – Property taxes collected within each school district provide some funding. However, because property values vary across communities, some districts have more local revenue than others. 

• Federal Funding – The federal government contributes a smaller portion of the budget, mainly for specific programs like special education (IDEA), school meals, and Title I support for low-income students.

• Other Revenue Sources – Schools may also receive money from grants, bonds, and fundraising efforts, but these funds are typically designated for specific purposes.

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 the publicly available data, it is clear the board missed the obvious warning signs.  The graph below (LEFT) 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 

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 below (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 

Below is a summary of Corbett’s Emergency Loan Agreement with MESD

MESD has approved an emergency loan of up to $2 million for Corbett School District, which must be fully repaid by June 30, 2033, including interest.

• Loan Disbursement: Corbett will receive $1 million immediately, with the remaining $1 million available in increments of up to $500,000 between February 1, 2025, and June 15, 2025.

• Interest Rate: The loan accrues 2% interest annually on the outstanding balance.

• Repayment Schedule:

  • On June 30, 2025, Corbett must pay the interest accrued from December 1, 2024, to June 30, 2025.

  • Starting June 30, 2026, Corbett will make eight annual payments of $250,000 (or the remaining balance, whichever is less), plus accrued interest until the loan is fully repaid.

  • MESD will automatically deduct payments from Corbett’s allocated funds (such as transit funds) before distributing the remaining funds to the district

Source: MESD and CSD Loan Agreement

Ending Fund Reserves – This is the remaining balance of funds at the end of a fiscal year after all expenses have been paid. It acts as a financial cushion and can be used for future budget needs, unexpected costs, or to help balance shortfalls in the next year. The Corbett School ending fund reserves should aim to be 5% of the budget.

Emergency Reserves – These are set aside specifically for unforeseen financial crises like economic downturns, unexpected state funding cuts, or urgent school repairs. Unlike general reserves, emergency funds are typically restricted and only used in true emergencies to keep essential operations running. The Corbett School emergency reserves should aim to be 5% of the budget.

Both reserves are important for maintaining financial stability, preventing sudden budget cuts, and ensuring the district can handle unexpected challenges without major disruptions.

Corbett's taxes are unaffected by school size. Only the passage of a bond or levy would increase local school related taxes.

Key Internal Controls to Prevent Budget Issues

1. Accurate Budgeting – Use realistic revenue and expense projections based on actual data, with regular updates to multi-year financial plans.

2. Financial Oversight – Employ qualified financial professionals and require independent audits to ensure accuracy and compliance.

3. Spending Controls – Enforce strict approval policies, spending limits, and purchase orders to prevent unnecessary expenses.

4. Regular Monitoring – Provide monthly or quarterly financial reports to track actual spending against the budget and catch issues early.

5. Reserves & Emergency Funds – Maintain healthy reserves with clear policies on usage to cover unexpected costs.

6. Enrollment & Revenue Planning – Monitor enrollment trends and adjust staffing and spending accordingly.

7. Transparent Communication – Keep staff, parents, and the community informed while ensuring the School Board understands financial reports before making decisions.

8. Fraud Prevention – Conduct regular internal audits and enforce strict accountability measures against financial mismanagement.

Implementing these controls helps districts avoid financial crises, maintain public trust, and ensure long-term stability.

No. The staffing cuts, 6 furlough days, $2 million loan from MESD, and the increased enrollment for the 2025-2026 school year have stabilized CSD financially the time being. 

While the exact funding amount is not yet determined, the business manager provided an informed estimate projecting a remaining budget of $1,030,727. It has been indicated that the majority of these funds will likely be allocated toward hiring one middle school teacher and three educational aides to support student learning. The board requested in the December 18th 2024 board meeting for any other excess revenue to not be spent on payroll. 

In Oregon, state funding for schools is based on student enrollment using a formula called ADMw (Average Daily Membership weighted). This system calculates funding per student, with extra support for those in special education, low-income households, or English language learning programs.Since funding is tied to enrollment, more students bring in more money, while fewer students mean budget cuts. 

For Corbett, this means the district receives about $12,000 per enrolled student, making enrollment the primary source of revenue for the annual budget. 

Simply put: more students mean more funding, while fewer students result in budget cuts.

The only viable solution to restore staff and avoid another budget crisis was to increase student enrollment for 2025-2026. During a board meeting on December 18th, after a 5.5-hour debate, the board reluctantly agree to raise enrollment for the 2025-2026 school year from 1,082 to 1,224 students to help stabilize funding.

Sports Divisions are based on a 3-year average of the number of 9th-11th grade students. Corbett Sports is classified as "District 3A," but football is classified as "District 2A” because of a request from a few years ago. 

Corbett Sports will keep its current classification. Corbett High School, with 235 students, falls within the 146-310 student division. With enrollment expected to grow by 50 students to 285, the division remains unchanged unless the three-year average exceeds 310 students.

Source: https://www.osaa.org/governance/handbooks 

Class sizes will vary by grade level, with high school classes generally being larger than those in the lower grades. However, Kindergarten and 1st grade class sizes will stay the same and won’t be affected by any increases. Here is the proposed change from the December 18th, 2024 board meeting.

Kind - 1st: 23

2nd - 3rd: 30

3rd - 4th: 31

4th - 5th: 31

6th: 31

6th - 8th: 32

9th - 12th: 33

Source: Proposed enrollment

A school that serves both in-district and out-of-district students has benefits and challenges. Here’s a breakdown of the pros and cons:

Pros:

✅ Increased Funding – More students mean more per-student state funding, helping to stabilize the budget and prevent cuts to programs and staff.

✅ Expanded Course Offerings – A larger student population can justify offering more electives, advanced classes, and extracurricular activities.

✅ Diverse Learning Environment – Bringing in students from different backgrounds enriches the school community and promotes a broader perspective.

✅ Program Sustainability – Specialized programs (e.g., music, arts, AP courses) are more likely to continue when enrollment is strong.

✅ Prepares for Enrollment Fluctuations – Accepting out-of-district students helps offset declining in-district enrollment, keeping class sizes balanced.

Cons:

❌ Community Tensions – Some in-district families may feel their students should be prioritized over out-of-district enrollees.

❌ Transportation & Logistics – If the district doesn’t provide transportation for out-of-district students, accessibility could become a challenge.

❌ Strained Resources – More students can put pressure on school facilities, staff, and transportation if not properly managed. 

• Setting the Vision and Goals – Defining the mission and big-picture goals to ensure students get a quality education.

• Managing the Budget – Overseeing and approving the district’s budget to make sure funds are used wisely and benefit students.

• Creating & Enforcing Policies – Setting rules for how the district operates, from academics to student behavior and staff expectations.

• Hiring & Evaluating the Superintendent – Choosing the right superintendent to lead the district and ensuring they’re doing the job well.

• Connecting with the Community – Keeping the public informed, listening to concerns, and ensuring they are transparent and responsive.

• Advocating for Schools – Working with local, state, and federal officials to push for policies and funding that support education.

• Ensuring Student Success – Tracking student performance and district progress to make informed decisions that improve outcomes.

• Creating a Safe and Inclusive Environment – Making sure schools are welcoming, secure, and supportive for all students and staff.

• Approving Contracts and Managing Facilities – Overseeing school construction, maintenance, and vendor agreements.

• Supporting Teachers and Staff – Providing the resources, training, and encouragement educators need to do their best work.

• Be a Registered Voter – Must be a legally registered voter in the state of Oregon.

• Live Within the School District – Must reside within the Corbett School District boundaries for at least one year before the election or appointment.

• Not Be an Employee of the District – Cannot be currently employed by the Corbett School District.

• Meet Local and State Election Rules – Must follow all applicable state and local election laws for candidacy and campaign procedures.

Source: May 2025 Special District Election webpage. 

Please reach out to us if you are interested! csdbudgetcrisis@gmail.com 

Any qualified voter who desires to be a candidate for an office listed below must file with the Multnomah County Elections Division, 1040 SE Morrison Street, Portland, Oregon 97214, no later than 5:00 p.m., March 20, 2025. A candidate guide, which includes position qualifications, and filing forms are available on the May 2025 Special District Election webpage.

Source: May 2025 Special District Election webpage. 

The budget committee is responsible for reviewing and recommending the district’s budget but does not make educational policy decisions—that authority remains with the School Board. The committee evaluates financial programs, reviews the superintendent’s proposed budget, and can suggest adjustments, but it cannot add new programs, approve hiring, or increase salaries.

The committee consists of seven appointed community members and the elected School Board members. The final budget hearing and adoption are handled by the School Board. All budget committee meetings are open to the public, ensuring transparency and community involvement.

Source: Budget Committee DBEA