The Oregon Department of Education has agreed to reimburse the Klamath County School District more than $2.5 million after it underpaid school districts by using federal forest funds to offset State School Fund allocations.
The state’s decision to reimburse school districts comes a year after the KCSD Board of Directors sent a resolution to Gov. Tina Kotek and state leaders, urging the Oregon Legislature to authorize payments to school districts owed three years of back payments from the National Forest Payment to States program.
ODE underpaid KCSD and other districts between 2018 and 2020. KCSD is owed $2.574 million, the most of the 82 districts impacted by the underpayments. Klamath Falls City Schools is owed nearly $1.1 million.
In a “Statement of Payment” memo sent on July 18, 2024, ODE Director Dr. Charlene Williams said the state intends to make payments to districts before Oct. 1, 2025, contingent on legislative appropriations.
KCSD Superintendent Glen Szymoniak commended the district’s Board of Directors for their ongoing advocacy at the state level and state Rep. Emily McIntire’s persistent support working with the Oregon Department of Education.
“The work done by our school board and Rep. McIntire is making a direct and positive impact on our district and on public education statewide,” he said. “Their focus is on ensuring our students get the resources they need, and we appreciate their efforts.”
The Oregon Department of Education cited a discrepancy between state and federal law as a reason for the underpayments. That issue was identified and fixed, and in April 2022, Secure Rural School Act money from the National Forest Payment to States program was removed from the state’s definition of “local revenue.” The federal Act had been amended in 2018, adding a provision that none of the forest funds could be used to offset a state funding source for schools or educational purpose.
Under the National Forest Payments to States program, states are entitled to 25% of timber sales revenue on federal lands within their borders. Those payments are then distributed to counties based on federal forest acreage, and counties are required to spend the funds on schools and roads.
