Education Funding

Oregon to Vote on Ed. Trust Fund; Kitzhaber Vows to Fight GOP Plan

By Karla Scoon Reid — March 13, 2002 2 min read
  • Save to favorites
  • Print

A political impasse over Oregon’s budget troubles continued this month, following the end of a second special legislative session to resolve a funding gap of almost $1 billion in the state’s current two-year budget.

The special session ended March 1 with the Republican-controlled House and Senate supporting the use of education trust funds to make up a shortfall in revenue and an increase in state expenditures.

Included in the Republican plan to balance the budget is a ballot measure in May asking voters to transform the state’s Education Empowerment Fund into an education stabilization fund that would support schools financially in emergency situations.

In addition, the ballot measure seeks to use $220 million from that new stabilization fund to apply to the deficit.

Mark Simmons, the Republican speaker of the House, describes the stabilization fund as “landmark legislation.” He added that the new fund would protect the “financial health” of schools in the future.

As it now stands, the $5.2 billion education budget for 2001-2003 has been cut by about $112 million, which includes aid that emphasized literacy programs for elementary school students.

But Democratic Gov. John A. Kitzhaber vows to fight the GOP ballot measure because he believes it does not address the long-term fiscal needs of the state.

Mr. Kitzhaber plans to veto the legislature’s use of $67.5 million in tobacco-settlement money for the budget and will let the budget bill become law without his signature. In a news release, the governor said the budget would create a “huge financial cliff for the net biennium—particularly for public education.”

“This is stunningly irresponsible,” he added.

Ongoing Battle

The first special session, which ended Feb. 11, sparked a standoff when GOP legislators bypassed Mr. Kitzhaber’s proposed budget and adopted a plan of their own that relied on money from trust funds. (“Gov. Kitzhaber, Lawmakers at Odds Over School Funds,” Feb. 20, 2002.)

This week, the governor plans to announce $87.5 million in additional cuts to make up for restoring the tobacco fund and other funds in the GOP budget.

In the recent session, Republican lawmakers once again balked at Mr. Kitzhaber’s budget solution, which included tax increases for cigarettes, beer, and wine and a repeal of a 2000 voter-approved tax cut.

Republicans believe that they are seeking a temporary financial solution while Oregon and the nation work out of the recession.

“We did not need a long-term tax increase to solve a short-term problem,” Mr. Simmons said in a statement.

Jean Thorne, the governor’s education adviser, said Mr. Kitzhaber would oppose the May 21 ballot measure that would scuttle the Education Empowerment Fund. The fund was established in the mid-1990s, using 15 percent of the annual revenue generated by the state lottery to support education.

Currently, Ms. Thorne said, the fund is being used for needs-based college scholarships and to pay debt service on lottery- backed bonds for school operations.

Meanwhile, the ballot measure puts Oregon’s education advocates in a difficult position. While the governor vows to campaign to defeat adoption of what is being called the “rainy day fund,” the state’s schools could be left with a $220 million deficit—about $330 per student—if the measure doesn’t pass.

A version of this article appeared in the March 13, 2002 edition of Education Week as Oregon to Vote on Ed. Trust Fund; Kitzhaber Vows to Fight GOP Plan

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Artificial Intelligence Webinar
Managing AI in Schools: Practical Strategies for Districts
How should districts govern AI in schools? Learn practical strategies for policies, safety, transparency, and responsible adoption.
Content provided by Lightspeed Systems
Education Funding Webinar Congress Approved Next Year’s Federal School Funding. What’s Next?
Congress passed the budget, but uncertainty remains. Experts explain what districts should expect from federal education policy next.
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Student Absenteeism Webinar
Removing Transportation and Attendance Barriers for Homeless Youth
Join us to see how districts around the country are supporting vulnerable students, including those covered under the McKinney–Vento Act.
Content provided by HopSkipDrive

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding School Mental Health Projects Get 3-Month Reprieve as Court Rules Against Trump
The projects to expand school-based services have faced nearly a year of funding uncertainty and legal limbo.
5 min read
A student adds a note to others expressing support and sharing coping strategies, as members of the Miami Arts Studio mental health club raise awareness on World Mental Health Day, Tuesday, Oct. 10, 2023, at Miami Arts Studio, a public 6th-12th grade magnet school, in Miami.
A student adds a note expressing support and sharing coping strategies during a World Mental Health Day activity on Oct. 10, 2023, at Miami Arts Studio, a magnet school in Miami. Most recipients of two federal school mental health services grants the Trump administration has attempted to cancel over the past year will see their funding continue at least through June 1.
Rebecca Blackwell/AP
Education Funding Some Halted Federal Funds for Community Schools Will Flow, But More Remain Frozen
Schools in Illinois will regain access to some federal grant funds, but programs nationwide continue to struggle.
5 min read
Image of money symbol, books, gavel, and scale of justice.
DigitalVision Vectors
Education Funding The Trump Admin. Says It Supports Career-Tech. Ed. It Canceled CTE Grants Anyway
Nineteen projects—many in rural areas—lost funding that was helping students prepare for college and careers.
12 min read
As part of the program, the Business students at Donald M. Payne Sr. Tech Campus in Newark, NJ on Feb. 26, 2026m have access to computers with subscriptions to the latest software to help them prepare for the workforce.
Business students at the Donald M. Payne Sr. School of Technology in Newark, N.J., work in a computer lab on Feb. 25, 2026. A U.S. Department of Education grant was helping students in business and other fields at the school access enrichment programming, college courses, and financial support after graduation. But the department terminated the grant, along with 18 other similar awards across the country, last summer.
Oliver Farshi for Education Week
Education Funding Educators Warn Flat English Learner Funding Falls Short of Growing Demand
Educators remain uncertain about the future of federal funds for English learners.
3 min read
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025.
Pictures show what mouth shape different sounds make on the walls of Diana Oviedo-Holguin’s class at Heritage Elementary School in San Antonio, Texas, on Sept. 3, 2025. While educators feel relieved that federal dollars for supplemental English-learner resources will continue in the next fiscal year, they remain uncertain for the years to come.
Noah Devereaux for Education Week