Local Tax to Fund Staffing Considered as District Weighs Closing Rural School

By Rebecca Wallis

Newberg, OR – January 25, 2026

The Newberg School District 29J is preparing to ask voters to approve a new local option property tax levy, potentially as soon as the May 2026 election. District officials say the levy is needed to restore instructional time and stabilize finances. A closer look at what has been presented publicly, however, shows a more specific purpose.

The proposed levy is largely about pay, benefits, and contractual obligations, not expanding programs or adding classrooms.

A Question of Timing and Process

On January 23, Boundary Committee members and families received a districtwide email stating that the school board would begin discussing the levy and restructuring options at its January 27 meeting, when the board would formally hear the committee’s recommendations.

An earlier step had already occurred.

The school board received a detailed levy update on January 13 during a regular board meeting. While this was not the formal hearing of the Boundary Committee’s recommendations, district leadership presented the levy as a central option alongside school closures, boundary changes, and grade reconfiguration. Financial figures and committee vote results were discussed publicly, framing the available choices before the committee’s recommendations have been formally presented on January 27.

The distinction matters. The Boundary Committee was still being described as part of a forward-looking process, even as key options were already being outlined to the board and the public.

How the Levy Is Being Framed

The discussion took place during the January 13th board meeting where district leadership repeatedly framed the levy as a way to:

• Restore five furlough days

• Return students to a “full school year”

• Avoid disruptive restructuring

That framing emphasizes student time. The financial breakdown tells a more specific story.

Where the Money Would Go

District officials identified approximately $4.5 million in annual funding needed to maintain the current system:

• $1.3 million to restore five furlough days eliminated as a cost-saving measure

• $2.29 million (estimated) for already-negotiated cost-of-living adjustments and contractual pay increases for licensed and classified staff

• Remaining costs tied to rising mandatory expenses, such as retirement contributions, health care, transportation, and operations, which were not fully itemized

More than half of the levy need presented is directly tied to compensation, with the remainder tied to rising fixed costs rather than new services.

District leadership stated explicitly that the levy is not intended to add administrators, expand technology, or launch new programs. The stated goal is to maintain existing staffing levels and contractual obligations.

Instructional Time vs. Compensation

While the district’s public messaging centers on restoring instructional time, the furlough days cited were implemented as a cost-containment measure tied to payroll pressure and extremely tight budgeting.

Bringing those days into next year’s budget requires the funding that supports staff pay and benefits.

That distinction matters for voters weighing whether this is a levy primarily for students or a levy designed to sustain union labor agreements during a period of declining enrollment.

What NDPS Taxpayers Already Pay

Before voters are asked to approve a new local option levy, it is important to state clearly what school taxes are already in place.

According to the district’s certified property tax levy filing, Newberg School District 29J’s permanent operating tax rate is $4.6616 per $1,000 of assessed value.

The district currently has no local option levy.

In addition to the permanent rate, the district levies a separate bond levy to repay voter-approved general obligation bonds. For the current year, the district’s bond levy totals approximately $6.5 million districtwide, with the effective bond rate varying by year and by property based on assessed value.

Any local option levy approved by voters would be new and additive, layered on top of the existing permanent operating rate and the ongoing bond levy.

About the Levy Rate

Under Oregon law, local option levies are structured as a rate per $1,000 of assessed value. The exact rate for a new Newberg-Dundee local option levy has not been proposed or approved. District leadership emphasized that polling and additional board discussion would guide any eventual proposal.

During the January 13 meeting, Superintendent Dave Parker referenced examples from neighboring districts to provide context, citing districts with local option levies generally in the range of approximately $1.25 to $1.50 per $1,000 of assessed value.

A Note on Oregon’s Tax Limits

Any local option levy would be added on top of the district’s existing tax rates, but Oregon’s Measure 5 limits can reduce how much of that levy is actually collected, and the district has not yet shown how compression would affect a proposed levy.

2025-2026 property tax summary and how taxes are assessed in Yamhill County can be viewed here and for more information you can visit https://or-yamhillcounty.civicplus.com/167/Assessor-Tax-Collector.

Context From Past Budget Coverage

This is not the first time the district’s financial outlook has shifted mid-narrative.

In earlier budget discussions, initial projections showed a significant deficit for the 2023–24 school year. That information was later corrected through audit, and the year ultimately closed with a surplus. The earlier reporting error was acknowledged publicly, though staffing reductions had already occurred based on the projected shortfall.

The current levy discussion follows a similar pattern. While enrollment decline and structural challenges are real, district officials have acknowledged that the district is currently operating close to break-even, not facing immediate insolvency. Reserves have declined, but no new deficit has been identified without further action.

School Closure Recommendations Include District’s Most Rural Campus

As part of the levy discussion, district leaders have acknowledged that school closures remain under consideration if voters do not approve new local funding. Identified in that conversation is Ewing Young Elementary located on North Valley Rd, the most rural school in the district. Ewing Young serves families outside the city limits and draws from a geographically dispersed attendance area, setting it apart from neighborhood schools located within Newberg’s urban boundary.

District presentations have pointed to Ewing Young as a campus affected by declining enrollment and long-term structural challenges. Closing the school would require students to travel farther, increase transportation demands for rural families, and shift enrollment pressures onto other elementary schools.

What Happens If the Levy Fails

District leadership has said that approval of a local option levy would pause restructuring efforts for several years. If the levy does not pass, restructuring options, including school closures, boundary changes, grade reconfigurations, and larger class sizes, would move forward.

For rural families, that context matters. The levy discussion and the closure recommendations are being presented together as part of the district’s broader response to enrollment decline and financial pressures. While some view this framing as part of the district’s effort to maintain staffing and compensation levels, for families outside the city core it could mean longer travel times, adjustments to childcare arrangements, and added strain on work-life balance.

If the levy passes, the district has indicated the current K–5 neighborhood school model would remain in place, restructuring would be paused for the levy term, and staffing and compensation levels would be maintained.

Why This Matters

Local option levies are not neutral tools. They establish new taxes for a defined period and are often used to stabilize labor costs during enrollment decline.

Voters deserve clarity about what they are being asked to fund and how much that funding is.

Based on the public information presented to date, this proposed levy is not primarily about expanding classroom services or adding new academic programs. It is about maintaining the current system, including staffing and compensation, in the face of declining enrollment and rising costs.

That does not make it illegitimate.
But it does make transparency essential.

From the Boundary Committee Email Sent From District Leadership:

How to share feedback now

We need to hear from you. We are using ThoughtExchange to gather questions, concerns, and perspectives.
ThoughtExchange is:

• Anonymous
• Not a vote
• A way to identify themes and concerns as we move forward

Please share your input here:  https://tejoin.com/scroll/258990940
Thank you for staying engaged in a difficult conversation. Our commitment is to be straightforward about the realities before us, while also protecting what is strong about Newberg-Dundee schools and keeping students at the center of every decision.

Sincerely,
David Parker
Superintendent
Newberg-Dundee Public Schools

Photo Credit: Yamhill County News File