Oregon Public Broadcasting

The $117 million headed to Oregon to help prop up public schools is creating a big dilemma. As Rob Manning reports, school districts have to decide whether to spend everything this year, or save for next year.

The education bailout bill that President Obama signed last week is worth less than $5,000 to the tiny Ashwood district in Jefferson County. But it means more than $9 million for Portland.

Whatever the dollar figure, state and federal officials say the money is clearly intended for this coming year. But the feds' official advice says districts that have money left over MAY use those funds on the next school year.

One of Oregon's largest districts, Salem-Keizer, is among those intending to save as much money as possible for a year from now.

State officials say if most districts decide to sock money away, Oregon will ask for explicit permission to do that.

Many district leaders are hesitant to take immediate action, since the budgets for the next two years could worsen soon. The next revenue forecast comes out next week.