The Salem-Keizer school district is the second-largest district in the state. Salem-Keizer has more than 37,000 students across 65 schools. Due to the number of students, Salem-Keizer’s cost is rising fast.
On September 22, 2026, Superintendent Andrea Castañeda announced that the Salem-Keizer public school district is projecting a 46 million dollar budget reduction for the upcoming 2026-27 school year.
Castañeda mentioned rising costs in the Oregon Public Employees Retirement System and healthcare benefits. Castañeda said the district has also faced a negative revenue adjustment for the current school year, due to Oregon’s funding formula relying on a federal census student poverty estimate. Ongoing operational costs are outpacing incoming revenue, compounded by declining enrollment and state funding shortfalls.
Castañeda said the 46 million dollar budget estimate is an early forecast and cautioned that changes are likely. Castañeda estimated the particulars of the latest reduction will not be available until the winter.
Salem-Keizer school district will not have final information about what the budget is until it is almost time to adopt one, as the budget will also have to go through the legislative process. The district will adopt a budget in May. The 2027 legislative session is scheduled to begin in January and end in June.
In the meantime, Castañeda said the district will continue to focus on classrooms and schools.
