The Jefferson County School District 509J is heading into the 2026–27 school year leaner, after finalizing a $2 million reduction to its annual budget — part of a statewide wave of cuts hitting Oregon school districts as enrollment declines and a key state funding formula shifts.
Despite the significant dollar figure, district officials say no employees will be laid off. Instead, the district is eliminating 16 to 18 positions through attrition — retirements, resignations, and staff who chose not to return — and reassigning others to different schools or roles within the district.
What's Being Cut
Superintendent Jay Mathisen said the district aimed to spread reductions across all departments rather than targeting any single program or school.
"We're reducing, it looks like, between 16 and 18 positions, and they're across all of our different employee groups. We're doing a proportional cut across all of our departments. Pretty much everywhere takes a little bit of a cut," Mathisen said.
The Jefferson County Middle School has already seen changes, with two sections of Career and Technical Education courses being closed for lack of enrollment. The district has been careful to protect athletics, music, and other high-demand student programs.
The Statewide Picture
Jefferson County is not alone. Across Central Oregon, school districts are grappling with similar pressures:
- Bend-La Pine School District is cutting approximately $7 million and eliminating 41 positions — all through attrition.
- Redmond School District is cutting $3.5 million.
- Crook County School District made minor adjustments, with its overall budget largely stable.
Why Is This Happening?
Oregon's school funding formula recently changed how it calculates poverty weighting — the additional per-student funding districts receive for children who need extra support. Special education students receive twice the base funding, but only for up to 11 percent of the student population. Many districts, including those in Jefferson County, serve a far higher percentage of students needing those services.
"We have one of the lowest models for funding special education in the country, and so those kinds of issues impact our overall revenue source," said Bend-La Pine Superintendent Steven Cook.
Falling enrollment compounds the problem. As student headcounts decline, per-pupil state funding follows, even if fixed costs like buildings and administration don't shrink proportionally.
What's Next
The Jefferson County School District Board of Directors adopted the 2026–27 budget this spring. Community members with questions about specific program changes are encouraged to contact the district offices in Madras or attend an upcoming school board meeting.