Oregon Legislators Push to Scrap School Funding Model After Years of Declining Performance and Enrollment
Oregon lawmakers are being asked to consider proposed new legislation to abolish the existing 27-year-old school district funding model in an effort to improve the state’s poor academic record.
Source: Oregon Department of Education / Oregon Statewide Report Card 2024/25
Dailytidings.com
Senate Bill 1555 was presented to the Senate Education Committee on Tuesday by Democratic co-sponsors, Sen Janeen Sollman of Hillsboro and Rep. Ricki Ruiz of Gresham.
The Proposal Will Reshape How Billions of Education Dollars Are Distributed
The two lawmakers believe that changes to the existing Quality Education Model (QEM) are long overdue.
They are calling for a nonpartisan research group to develop a new costing model specifically designed to address the unique needs of both urban and rural schools.
The lawmakers say a new costing will expand the goals that school districts are called to meet. The proposal will essentially reshape the way in which billions of education dollars are distributed to school districts throughout the state.
Sen. Sollman told the committee that a clear costing blueprint is needed to ensure that ninth-graders earn sufficient credits to meet graduation dates, to improve the reading levels of third-graders, and to improve the attendance rate of children attending kindergarten.
The existing QEM is incomplete at best and inaccurate at worst, according to legislative analysts who voiced their opinion some months ago.
They concluded that the Oregon Department of Education had failed to channel nearly $2 billion in business tax dollars to support initiatives and specific groups of students.
Oregon School Enrollments Have Dropped by 30,000 Students Over the Last Five Years
Oregon has experienced a significant decline in school enrollment, losing more than 30,000 students over the past five years.
Yet, despite fewer students and bigger budget amounts allocated by lawmakers, many school districts are forced to cut costs as overheads continue to climb.
SB 1555 is also a governance overhaul – it will abolish the QEM and the Legislature’s adequacy review committee, shifting who controls school funding “cost assumptions” as much as the model itself.
Here is what the bill would change about who builds the costing model and how often it updates:
| Provision in SB 1555 | What it would do |
|---|---|
| Abolish Quality Education Commission | Ends the current commission role tied to the Quality Education Model process. |
| Shift cost model work to Legislative Policy and Research Office | Requires LPRO to contract with a public or private entity to build the education cost model. |
| Move the sufficiency report to Joint Ways and Means | Transfers the funding sufficiency reporting role away from the Joint Public Education Appropriations Committee. |
| Update the goals used as the basis for the cost model | Sets new quality goals including fully licensed educators and statewide targets tied to SB 141 (2025). |
| Change how often the cost model is rebuilt | Requires a new cost model every 8 years, with interim dollar updates tied to inflation and other costs. |
| Require prototype schools and educator panels | Calls for prototype schools reflecting diverse settings and professional judgment panels of practicing educators. |
| Emergency clause | Takes effect on passage. |