Oregon Public Broadcasting

Two weeks ago governor Kulongoski announced a nine percent across-the-board funding cut for all state agencies. That's translating into cuts for that range from about $19 million to the Portland Public schools, to a couple of thousand dollars for smaller districts.

Some districts have cash reserves they can use to help plug the hole, but not Gresham's Centennial school district. It's already spent down its reserves and laid off 37 teachers this year. Amelia Templeton reports on how the district is handling news of the most recent cuts.

Its about 3 pm at Centennial Middle School in Gresham. Students pour out of the front doors and enjoy a moment of freedom before heading home. Several dozen pile on to a yellow bus. School buses are just one service that has been severely cut back in the centennial school district.

Rick Larson: "We only transport students who are legally required to receive a school bus transportation"

That's Rick Larson, the Business manager for the Centennial district. He says property values in the neighborhood aren't very high. About two-thirds of Centennial's funding comes from the state's general fund.

And Larson says that's not a reliable source.

Rick Larson: "As soon as people lose their jobs and quit working, and as soon as business loses money, they stop paying taxes. Our state income goes down and we have no reserves to fall back on. " Centennial lost about 12 percent of its state funding this year. That was before Governor Kulongoski announced a revenue shortfall and a 9 percent cut to all state agencies.

Federal stimulus funds for 2010 helped Centennial a little. But Larson says they still had to lay off about 10 percent of their staff.

Rick Larson: "That was made up of about 37 teachers, 11 support staff, two administrative people. We also had some additional supplies and services. As well as spending down three-quarters-of-a-million dollars in reserves."

Laura Barth has a fourth grader and a sixth grader at Butler Creek Elementary, in the district. She says physical education and arts were the first things to go:

Laura Barth: "When my older son was in fourth grade he got to learn the recorder. That's not an opportunity my younger son will have." 

The latest round of cuts will reduce Centennial's budget by about $3 million, or 5 percent. That's the equivalent of laying off about 35 more teachers or cutting about 15 school days.

Larsen says the district will have to do some of both. He expects class sizes to go up to about 30 students in kindergarten and first grade, and 38 or 39 for fifth and sixth graders. That worries mom Laura Barth.

Laura Barth: "There's a part of me that starts going, well I might as well home school him."

Barth says she knows about ten families that have applied to a nearby charter school or will send their kids to private school next year.

Barth says she supports the district's teachers. But she thinks their union hasn't been flexible enough in its response to the economy

Laura Barth: "I mean particularly in Centennial we have the issue of the cost of living rate that is exceptionally high. It was a four percent, each year for three years. Yet my husband last year took a ten percent pay cut because of things that are happening in our economy. "

Erik Perkins is the president of Centennial Education Association and a fifth-grade teacher at Lynch Meadows Elementary. He says the union had agreed to delay its four percent cost of living increase for half a year to save the school district money, and to prevent some layoffs.

Erik Perkins: "And then the news came out Tuesday. And all the work we had done was derailed, put on hold. And that's where the conversation ended. Till we figure out up from down."

Perkins says that with the latest round of cuts, he can't guarantee his fifth graders will succeed:

Erik Perkins: "This year in my classroom, 83 percent of my kids met the benchmark for reading and math. I have 24 kids and I can do that. I don't know what it would look like to teach 40. I can't promise the same results."

As tough as the situation is at Centennial and other districts, it is likely to get worse next year when federal stimulus funds run out. And the state has also increased its estimate of the revenue shortfall for the next biennium by about $300 million.

Dr. Robert McKean is the Superintendent of the Centennial school district.

Robert McKean: "Unless something happens that currently I don't see in the cards, we're in trouble. It's quite straightforward. And I mean as a state, not just Centennial."

Congress is considering legislation that would provide federal funding to prevent teacher layoffs across the country. Oregon Senators Jeff Merkley and Ron Wyden have co-sponsored the bill.