How is Hillsboro funded, and why is it cutting again?
State-formula funded, second year of budget cuts
Most of Hillsboro's day-to-day money comes from two places: Oregon's State School Fund, which pays districts by a weighted count of students, and local property taxes at the district's fixed permanent rate of $4.9749 per $1,000 of assessed value. Together they make up about 87% of General Fund revenue. Because the state formula follows students, falling enrollment means less money. The district says its costs grew about 19% in the 2025-27 state budget period while the State School Fund grew 11%, so it cut $20 million in 2025-26 and planned another $10.2 million in reductions for 2026-27. Building repairs and construction are paid separately, by voter-approved bonds, which is why the board has put a $430 million bond on the November 3, 2026 ballot as Measure 34-355.
Fewer students means less state money
The district counted 18,318 students on October 1, 2025, down 409 from a year earlier. Its demographer expects resident enrollment to drop another 2.5% over five years and 5.1% over ten, with the biggest drop in middle schools.
A second round of cuts reaches classrooms
The adopted 2026-27 budget plans $10.2 million in reductions, affecting about 49 positions (36.5 licensed, 11 classified, 1.4 administrators), including higher staffing ratios in middle and high schools. That follows a $20 million cut in 2025-26 that removed about 149 positions.
An Intel tax break ending raised local taxes, not total funding
Property tax collections rose about 30% in 2025-26 because Intel's Strategic Investment Program exemption expired. Oregon's formula counts local tax money against state aid, so the State School Fund grant in the General Fund drops from about $139 million to about $113 million in 2026-27.
Reserves are thin but meet policy
The 2026-27 budget holds an ending balance of about $11.9 million, 4% of the General Fund, the board's minimum target. The board has asked staff to rebuild reserves toward 8% over time.
The district's 2024-25 audit found no material weaknesses or findings, and it received a budget award. The cuts reflect a statewide funding squeeze and falling enrollment rather than any documented mismanagement.
Where the district stands
2026-27 General Fund budgetverified
$309,922,434
Down from $316.0 million budgeted for 2025-26 (-1.9%). Includes beginning fund balance. All funds total $459.4 million.
Planned 2026-27 budget reductionsverified
$10,200,000
About 49 positions affected. Follows a $20 million cut in 2025-26, which the district calls its largest single-year cut.
Students enrolled, October 1, 2025verified
18,318 students
Down 409 (2.2%) from October 2024 and about 10.7% since 2016. 576 students left for virtual charter schools. The October 27, 2026 board packet reports 17,901 students on October 1, 2026, down another 417.
Total staff positions (FTE), 2026-27verified
2,359 FTE
Down from 2,503 in 2024-25 and 2,385 in 2025-26, all funds.
Operating cost per student, 2024-25verified
$15,035
District's own figure: $279.5 million in operating costs divided by 18,587 students (average daily membership). About $7,061 of that goes to classroom instruction and $3,322 to special education.
Budgeted General Fund ending balance, 2026-27verified
$11,920,094
4% of the General Fund, the board's minimum target; the board wants to rebuild toward 8%. The 2024-25 audited balance was $11.9 million, down from $21.3 million a year earlier.
Measure 34-355 bond amountverified
$430,000,000
On the November 3, 2026 ballot. Estimated levy about $1.84 per $1,000 of assessed value; without a new bond the district projected its bond rate would fall to about $0.91.
Major projects
Measure 34-355: November 2026 capital construction bond ($430 million)
On the November 3, 2026 ballot
A citizen Bond Development Committee met eight times from September 2025 to April 2026 and recommended a package. Urgent needs were estimated at nearly $380 million and all requests at about $640 million. On May 26, 2026 the board voted 7-0 to place a $430 million bond on the ballot. The district says it would fund roofs, seismic upgrades, HVAC, plumbing and lighting; doors, locks, fencing and cameras; career-technical classrooms; kitchen remodels and buses, with work at every school. On September 22, 2026 the board approved a contract of up to $6.27 million with Cornerstone Management Group as owner's representative for bond projects, and adopted a resolution urging a yes vote on Measure 34-355.
Next: Voters decide on November 3, 2026. If it fails, the district says the listed projects would not be done.
Bond Development Committee holds first meeting
Board agrees to poll voters on the higher-rate option; options ranged from $312 million to $430 million
Bond Development Committee presents its recommendation to the board
Board votes 7-0 to put the $430 million bond on the November ballot
Board hires bond owner's representative and urges a yes vote on Measure 34-355
Election day
Funding
General obligation bonds repaid by a property tax levy estimated at $1.84 per $1,000 of assessed value, plus a $6 million state matching grant and a $6.6 million grant that depend on the bond passing.
The 2017 bond was $408 million.
2026-27 budget reductions
Adopted June 16, 2026
After a $20 million cut in 2025-26, the 2026-27 budget plans another $10.2 million in reductions, affecting about 49 positions, with higher staffing ratios in middle and high schools. Early retirement and separation incentives agreed with the classified union (February 24, 2026) and the teachers' union (March 4, 2026) were meant to reduce layoffs, saving about $1.2 million. New elementary math materials and a K-12 science adoption have been postponed because of reductions.
Next: 2027-28 budget planning begins in winter 2026-27; the October 27, 2026 agenda again notes the K-12 science adoption is postponed.
Board acknowledges postponed math and science materials due to financial reductions
Budget outlook and enrollment projections presented to the Budget Committee
Board approves retirement/separation incentive with classified union
Board approves retirement/separation incentive with teachers' union
Budget Committee approves the proposed budget 14-0
Board adopts the 2026-27 budget
Funding
General Fund reductions
Proposed pension obligation bonds
On the October 27, 2026 agenda
The board is scheduled to consider joining the Oregon Education Districts Pension Bond Program by issuing full faith and credit pension bonds. The district already repays pension bonds issued in 2005 and 2015 through 2034.
Next: Board vote on October 27, 2026.
Work session presentation and scheduled board vote
Funding
Full faith and credit pension obligation bonds (amount not stated in the agenda)
Local elections & school board members
Elections & votes
BondScheduled
Measure 34-355: Hillsboro School District $430 million capital construction bond
Hillsboro School District 1J (Washington and Multnomah counties) · $430,000,000
Measure 34-355. On May 26, 2026 the board voted 7-0 to put a $430 million general obligation bond on the November 2026 ballot. The district estimates a levy of about $1.84 per $1,000 of assessed value and says it would pay for roofs, HVAC, safety, accessibility, career-technical and other projects at every school, and unlock a $6 million state match. If it fails, the district says those projects would not be done.
Facts badged verified come from documents collected from the district's own websites (hsd.k12.or.us and bond.hsd.k12.or.us): board agendas, complete board packets and minutes from October 2025 to October 2026, 2026 Bond Development Committee slides and minutes, the 2026-27 Approved and Adopted budgets, and the 2024-25 Annual Comprehensive Financial Report. Board meeting recordings come from the district's official YouTube channel, using automatic captions.
Get alerts for Hillsboro School District 1J
We read every agenda, packet, recording, and set of minutes, and write up the decisions that affect families — each one linked to the document it came from.
