Skip to main content
District

Funding for School Facility Projects

Funding for School Facility Projects

How are school facility projects funded?

K-12 education funding in Oregon is complex, and funding for capital projects, including new construction and renovations, remains primarily the responsibility of local school districts and is usually financed through bond sales. Less than one percent of the district’s total year-to-year budget (often called the State Schools Fund allotment or SSF) is available for facility projects.

    • Our children are educated in safe, secure, quality learning environments
    • Local contractors are hired, whenever possible, to complete facility projects
    • The local economy prospers, and
    • Home values increase.
  • Small amounts of money are available, but are limited in scope and may require a bond to be approved by voters before the funding is available. Examples include:

    • The Oregon Department of Education offers Technical Assistance Program (TAP) grants to help school districts plan for capital improvements and expansion. The grant covers or offsets the cost of conducting a Facility Condition Assessment and Long-Range Facility Plan. OTSD has been awarded TAP funds.
    • Oregon’s School Capital Improvement Matching Program (OSCIM) provides up to $6 million in one-for-one matching grant funds, but requires a capital improvement bond to be approved by voters.
    • OTSD’s Facility Improvement Fund receives funds from the Construction Excise Tax, Senate Bill 1149 (utility surcharges), property leases, and fees that cover school facility use. The funds are used to support a small percentage of critical/urgent maintenance and campus repairs.
  • During the 2023-24 school year, the fund supported about $2M in projects, including:

    • Boring Middle bus loop and fencing
    • Modular classroom installation at Boring Middle
    • Sandy High North sports turf replacement, and
    • Welches School extended security fencing

     

    For the 2024-25 school year, the fund will support about $1.6M in projects, including:

    • Sandy High stadium sports turf replacement
    • Cedar Ridge library roof replacement
    • Bathroom fixture replacement in several elementary schools, and
    • Security film installed on windows at several schools
  • School bonds work a lot like home loans. Once authorized by the district’s voters in an election, a bond set at a specific amount can be issued by a school district to pay for capital projects, including maintenance and renovations, new school construction, and property purchases for future schools. Passing a bond measure authorizes the taxes that pay back the bond over several years.

    • A locally appointed Citizens Bond Oversight Committee would monitor progress of bond projects as well as ensuring funds are expended responsibly.
    • OTSD has a proven track record at handling multiple school projects and accomplishing them on time and within budget, as evidenced by the successful 2008 and 2002 facility bond projects.
    • OTSD has prioritized fiscal responsibility and maintained a balanced budget, even adding staff and programming while other districts throughout the state and the region experience cuts. This financially sound approach has helped to drive improved student achievement and increased graduation rates.
    • As per state law, OTSD produces an annual financial report that is audited by an independent audit firm. These reports are posted on the district’s website.