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
College & Workforce Readiness Webinar
Smarter Tools, Stronger Outcomes: Empowering CTE Educators With Future-Ready Solutions
Open doors to meaningful, hands-on careers with research-backed insights, ideas, and examples of successful CTE programs.
Content provided by Pearson
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
Reading & Literacy Webinar
Improve Reading Comprehension: Three Tools for Working Memory Challenges
Discover three working memory workarounds to help your students improve reading comprehension and empower them on their reading journey.
Content provided by Solution Tree
Recruitment & Retention Webinar EdRecruiter 2026 Survey Results: How School Districts are Finding and Keeping Talent
Discover the latest K-12 hiring trends from EdWeek’s nationwide survey of job seekers and district HR professionals.

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 ‘Terminated on a Whim’: The AFT Sues Trump’s Ed. Dept. Over Funding Cuts
The AFT and a Chicago-area nonprofit argue the cuts happened without following required procedures.
Randi Weingarten speaks at a press conference at Murrell Dobbins Career & Technical Education High School in Philadelphia, Pennsylvania on September 2, 2025.
Randi Weingarten, the president of the American Federation of Teachers, speaks at a press conference in Philadelphia on Sept. 2, 2025. Weingarten says that cuts to federal education funds by the Trump administration "are only hurting young people."
Rachel Wisniewski for Education Week
Education Funding School Mental Health Projects Canceled by Trump Might Still Survive
The end of funding could still be days away, but a new court order offers some hope for grantees.
6 min read
Reducing, removing or overcoming financial barriers, financial concept : US dollar bag on a maze puzzle.
William Potter/iStock
Education Funding 'A Gut Punch’: What Trump’s New $168 Million Cut Means for Community Schools
School districts in 11 states will imminently lose federal funds that help them cover staff salaries.
10 min read
Genesis Olivio and her daughter Arlette, 2, read a book together in a room within the community hub at John H. Amesse Elementary School on March 13, 2024 in Denver. Denver Public Schools has six community hubs across the district that have serviced 3,000 new students since October 2023. Each community hub has different resources for families and students catering to what the community needs.
Genesis Olivio and daughter Arlette, 2, read a book in one of Denver Public Schools' community hubs in March 2024. The community hubs, which offer food pantries, GED classes, and other services, are similar to what schools across the country have developed with the help of federal Community Schools grants, many of which the U.S. Department of Education has prematurely terminated.
Rebecca Slezak For Education Week
Education Funding Federal Funds for Community Schools Fall Victim to a New Round of Trump Cuts
The latest round of grant cuts hits a program that helps schools provide more social services on site.
6 min read
Parents attend a basic facts bee at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024.
Parents attend a "basic facts" bee at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024. The school has been a recipient of a federal Full-Services Community Schools grant that has allowed it to add an on-site health clinic, a parent-resource room, a therapy dog, and other services parents would otherwise have to seek elsewhere.
Samuel Trotter for Education Week