Oregon ranks near the bottom nationally in K–12 education, enrollment is shrinking, and Portland is considering school closures. Yet labor groups continue pushing new taxes while taxpayers wait for better results.
WalletHub’s 2025 study ranked Oregon 47th among the 50 states and Washington, D.C., for public-school systems. U.S. News & World Report placed Oregon 44th for pre-K–12 education.
Schools already receive the largest share of Oregon’s property taxes. According to the Oregon Department of Revenue, K–12 schools and education service districts accounted for 41% of property taxes imposed statewide in fiscal year 2025–26 more than any other category. Individual tax bills vary, but statewide, education takes the biggest portion while student outcomes remain disappointing.
Fewer Students, Growing Financial Pressure
A recent Oregon Catalyst article, credited to the Taxpayers Association of Oregon/OregonWatchdog, describes Portland Public Schools facing a $64 million shortfall and considering closing 14 schools.
The article reports enrollment has fallen 15%, with a 34% decline among the youngest student population. It also attributes roughly 60% of the budget shortfall to costs associated with Oregon’s Public Employees Retirement System, or PERS.
Gov. Tina Kotek has urged the district to cut administrative costs before closing schools, according to the Catalyst account. That is a sensible starting point. Families deserve a transparent accounting of spending before losing neighborhood schools.
Emergency funding might buy time, but one-time money cannot fix an ongoing budget imbalance.
Taxpayers Deserve Results
Meanwhile, Oregon Catalyst reports that teachers’ union and labor groups have supported a proposed $2 billion tax targeting Nike, while unions are also promoting a proposed $72 million CEO tax known as the Fair Share Tax.
Before asking taxpayers and businesses for more, supporters should explain how that money would improve achievement, address declining enrollment and prevent another financial crisis.
As the 2027 legislative session approaches, lawmakers should demand spending transparency, administrative discipline and measurable academic improvement not simply another revenue source.
Oregon families deserve schools that deliver. Taxpayers deserve proof that additional money will produce something more than another request for higher taxes.
Acknowledgment: This commentary draws on Oregon Catalyst’s “Kotek jumps into school feud (… new taxes loom),” credited to the Taxpayers Association of Oregon/OregonWatchdog. Portland budget, enrollment, pension and tax-proposal figures are attributed to that account.
