Education Funding

Gov. Kitzhaber, Lawmakers At Odds Over School Funds

By John Gehring — February 20, 2002 2 min read
  • Save to favorites
  • Print

After clashing over how to address Oregon’s $715 million budget shortfall, state legislators ended a three-day special session with a bailout plan that Gov. John Kitzhaber has vowed to veto, at least in part.

At the heart of the debate is disagreement on whether to tap in to millions of dollars of public school trust funds.

The special session ended in stalemate Feb. 11 when most Republicans refused to sign off on the Democratic governor’s proposed tax increases, which included a 50-cent-a-pack cigarette-tax hike. The GOP legislators opted for a plan of their own.

The Republican-controlled House and Senate passed a budget-balancing blueprint that would, among other provisions, cut K-12 education funding and draw from the trust funds.

Gov. Kitzhaber opposes using school trust funds to help fill the budget gap. In an effort to bring lawmakers closer together, the governor announced that public hearings would be held as the next step toward trying to balance the state’s two-year, $12.3 billion budget.

A public hearing on the education impact of the legislature’s package was slated for Feb. 15. A second special legislative session seemed likely sometime later this month

Meanwhile, the rhetoric has been heated. Mr. Kitzhaber was joined by representatives of several education groups at a Jan. 31 news conference at which he expressed opposition to borrowing from the 143-year-old common school fund. Money in the fund is invested, and the proceeds go to help local schools.

“Use of the common school fund would constitute borrowing from the future to meet our current needs,” the governor said. He backs beer, wine, and cigarette taxes, and a repeal of a 2000 voter-approved tax cut.

During the special session, the House and the Senate voted to borrow $120 million from the common school fund and take another $100 million from a separate school endowment fund used mainly to support school construction bonds. Those votes fell mainly along party lines. Republican lawmakers defended their plan. For one thing, they say that they didn’t have the two-thirds vote needed in each chamber to raise taxes. They added that the trust funds were not being “raided,” because the state could repay the loan from lottery proceeds.

The legislative plan also would put a measure on the May ballot seeking voter approval to convert the educational endowment fund into an educational stabilization fund to help local schools during tough economic times.

Lawmakers also passed a bill that would allow the state to borrow $120 million from the common school fund if the ballot measure failed—a bill the governor is expected to veto.

“It’s a classic political standoff,” said John Marshall, the director of legislative services for the Oregon School Boards Association.

Mr. Marshall said that other cuts proposed by the legislature would eliminate funding next year for a new program that earmarks state aid to help low-performing 3rd and 5th graders in reading and mathematics. Scheduled to testify at the public hearings, he promised a simple message: “No cuts, no gimmicks—that is the short of it.”

A version of this article appeared in the February 20, 2002 edition of Education Week as Gov. Kitzhaber, Lawmakers At Odds Over School Funds

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
School Climate & Safety Webinar
There But Not Present: Rethinking Student Engagement
Learn how to recognize the early signs of disengagement and what the behavioral science reveals about which interventions actually work.
Content provided by Frontline Education
Teacher Preparation Webinar What Teacher Education Should Look Like in the Age of AI
Explore the current trends around the use of AI in teacher preparation and continuing education with data from the EdWeek Research Center.
English Learners Webinar How Can School Districts Better Support English Learners With Disabilities?
Join this webinar to hear recent findings from the EdWeek Research Center and discover practical strategies for improvement.

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 Opinion An Expert Explains How the Federal Scholarship Tax Credit Will Work
A former Ed. Dept. official predicts the program will generate $3 billion for scholarships in 2027.
•
9 min read
The United States Capitol building as a bookcase filled with red, white, and blue policy books in a Washington DC landscape.
Luca D'Urbino for Education Week
Education Funding Ed. Dept. Meets Research Spending Deadline—But Bigger Funding Challenges Loom
The Institute of Education Sciences finished spending more than $170 million set to expire Sept. 30.
3 min read
Director of the United States Office of Management and Budget Russell Vought walks down a staircase on Capitol Hill in Washington, Thursday, July 16, 2026.
Russell Vought, director of the White House Office of Management and Budget, walks down a staircase on Capitol Hill in Washington on July 16, 2026. The OMB withheld millions of dollars from the U.S. Department of Education's research arm for months, raising the possibility it wouldn't spend the money on education research and data collection in time for its Sept. 30, 2026, expiration.
Allison Robbert/AP
Education Funding Trump's Ed. Dept. Is Still Disrupting Grants—Just More Quietly Than Before
The agency is deploying subtler procedures that result in fewer new grants and less stability for recipients.
11 min read
Senate Minority Leader Chuck Schumer, D-N.Y., center, confers with Sen. Brian Schatz, D-Hawaii, talk following a Senate Democratic Caucus meeting, at the Capitol in Washington, Tuesday, Feb. 3, 2026.
Sen. Brian Schatz, D-Hawaii, (right, speaking with Senate Democratic Leader Chuck Schumer) secured a commitment from Education Secretary Linda McMahon to supply additional funding for Native Hawaiian Education Program grantees when the U.S. Department of Education hadn't launched a competition for new grants. The Trump administration practice of abruptly canceling existing competitive education grants has slowed, but the Education Department is using procedures that result in fewer new grants and less stability for funding recipients.
J. Scott Applewhite/AP
Education Funding Trump, Bucking Congress Yet Again, Cancels $100 Million for Education
A "pocket rescission" hits programs for migratory farmworkers and college-level language instruction.
7 min read
Russell Vought, acting director, Office of Management and Budget, right, and Homeland Security Secretary Markwayne Mullin listen during a cabinet meeting, Friday, July 31, 2026, at Camp David, the presidential retreat, near Thurmont, Md., Friday, July 31, 2026.
Russell Vought, director of the White House Office of Management, listens during a Cabinet meeting on July 31, 2026, at Camp David, the presidential retreat, near Thurmont, Md. The White House has announced an $810 million package of "pocket rescissions," saying it won't spend the congressionally appropriated funds before the end of the 2026 federal fiscal year, which ends Wednesday. The rescissions include nearly $100 million for U.S. Department of Education program.
Jacquelyn Martin/AP