Oregon City School District Seeks Mediation In Negotiations With OCEA (Photo) - 02/18/26
FOR IMMEDIATE RELEASE
OREGON CITY, Ore - Feb. 18, 2026 - Oregon City School District (OCSD) and their employee association (OCEA) are facing a challenging task: how to balance limited funding resources with the needs of school staff.
On April 10, 2025, OCSD started the bargaining process with their Oregon City Education Association (OCEA) union team. Over the last 10 months, with a two month summer hiatus at the request of OCEA, they have worked to try to reach an agreement and find common ground. During this time there have been many difficult and important good faith discussions reflecting progress and collaboration. Yet, an agreement has not been reached at this time.
In the next few years OCSD will be facing very impactful budget challenges. In the 2026-2027 school year alone, they will experience a budget deficit of $5 million due to employer required payments for PERS (public employee retirement system). They also expect to receive less revenue from the state school fund due to decreased enrollment predominately due to low birth rates resulting in smaller elementary classes. Additionally, there may be other impacts due to federal or state fiscal changes which remain unknown at this time.
At the same time, several significant issues remain unresolved on the bargaining table, and direct negotiations have not moved to a final agreement. The 150-day threshold for direct bargaining was reached in December, and under Oregon law, either party may now request mediation. As of February 18, 2026 OCSD, like many other districts in Oregon, is choosing to take this step out of a sense of urgency to reach a settlement. Working with a mediator is the best option to help both sides bridge the remaining differences. Mediation is an independent voice to support both OCSD and OCEA in moving through these challenging choices and to consider all options.
Currently, OCSD and OCEA have reached tentative agreement on 16 articles with 9 outstanding, two of which are new additions by OCEA. OCSD’s goals in mediation are straightforward:
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Support safe, stable, and well-staffed schools for students
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Provide competitive, sustainable compensation for educators
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Protect student programs and services over the long term
Overall OCSD can expect a total budget short fall of $7 to $9 million for next year, which is partially impacted by the cost of living increase to be agreed upon with OCEA. This could equate to a reduction of at least 50 staff in their schools and increased class sizes to 30 or more among other possible reductions. The following year they are also expecting to see increases in PERS payment, however, state funding will not be known until next spring; continued intentional planning is essential. As almost 85% of funding goes directly to staffing the district, reductions to staff would be necessary to balance the budget.
Oregon City School District values their educators and their experiences. They are eager to work towards an agreement with the mediator and the OCEA negotiation team. Please see the bargaining webpage under Human Resources on the OCSD website for timely information throughout this process.
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