Though Oregon's school finance system has been in place for decades, it can no longer meet the needs of our schools, nor the expectations of policymakers and communities. The current design does not provide the level of detail to clearly understand how funds are allocated, how they are used, and the outcomes they support. Through S.B.141 and ongoing legislative direction, state and executive branch leaders have made it clear that Oregon's education system needs greater fiscal transparency, stronger alignment between investments and results, and more consistent data for accountability.
Modernization is about advancing the Program Budgeting and Accounting Manual (PBAM) and the Chart of Accounts to support the delivery of more timely, reliable, and transparent information for every level of Oregon's education system. By strengthening the connection between data, funds, and outcomes, modernization of the Chart of Accounts will upgrade an administrative requirement into a strategic tool for decision-making that supports the statue's written goals of transparency, comparability, and continuous improvement.
Modernization gives Oregon a clearer view of how our investments align with our shared goals for students, and that is the heart of accountability.
Current Working Program Budgeting and Account Manual (PBAM) and Chart of Accounts Material
Oregon Department of Education (ODE) will maintain the most current draft versions here. These materials include updates made following the second Public Comment period and the State Board’s first read.
Versions before the State Board of Education for second reading on April 16, 2026:
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New PBAM Draft - State Board - First Read - 3.19.26
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New Chart of Accounts Draft - State Board - First Read - 3.19.26
Implemenation Date: July 1, 2028 (Fiscal Year 2029)
Why This Work is Happening
The legacy PBAM and Chart of Accounts system has resulted in:
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Limited transparency and timeliness: Financial data arrives well after the school year and does not include all required information to make timely, informed decisions.
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Redundant and inefficient reporting: Districts frequently report the same information in multiple formats to meet different state and federal requirements.
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Limited visibility for communities and decision-makers: Current systems make it difficult to clearly see how education funds are used to support students.
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Challenges with insight into fiscal health: Limited insight into district finances lead to unexpected shortfalls, weak long-term planning, and possible disruption to student services.
Significant challenges to access of timely and reliable financial data impacty:
- Legislators and the Governor’s Office, who need financial information to guide policy and budget decisions.
- Communities and families, who deserve transparent information about how resources support students.
- Financial insitutions and other external reviewers, who evaluate fiscal health.
- Federal Agencies, who require more detailed and standardized reporting.
Acknowleding The Scale of The Change
Updating the PBAM and Chart of Accounts is a significant shift for districts, education service districts (ESDs), and charter schools. The project will affect coding practices, workflows, and reporting systems at every level. Because of the scope and impact of these changes, ODE is engaging in meaningful collaboration throughout the modernization and implementation process.
ODE acknowledges the ongoing contributions of school districts, ESDs, charter schools, software companies, auditors, and supporting education associations. Their feedback has and will continue to help refine the updated drafts, chart the course for implementation, and confirm where support is needed.
Engaging the Field to Support Successful Implementation
ODE is committed to ongoing collaboration throughout implementation.
Technical design feedback collected across two public comment periods and through direct engagement with districts, ESDs, charter schools, the Chart of Accounts Committee, auditors, software vendors, and education associations raised several consistent themes:
- The scope of the change requires additional time for system testing.
- Codes needed to be clear, intuitive, and meaningful.
- Training, clear guidance, and implementation support needed.
- Clarity on how the new structuire affects budgetiung and reporting.
- Technology integration and vendor alignment.
In response to this feedback, ODE has:
- Received approval from the Governor's Office to extend the implementation date an additional year to July 1, 2028 to add an Early Adopter phase for testing and further collaboration.
- Applied feedback to reduce the size of the proposed chart of accounts and refined codes.
- Committed to building additional guidance, tools, training and partnerships.
As phases of the project continue, ODE is committed to continuing engagement to those directly impacted by this work through:
- An Expanded Chart of Accounts Committee: Including additional school district, charter school, and ESD representation.
- An Early Adopter Phase: Working directly with a subset of education agencies on early implementation.
- Vendor Partnership: Weekly meetings with accounting software vendors to support transition.
- Agency Wide Readiness: Deep collaboration within ODE to ensure all agency resources are prepared to support modernization.
Early Adopter Phase
The newly added Early Adopter Phase helps validate system functionality, identify issues early, and refine training and guidance before statewide implementation. Additional information will be shared through ODE communications about how Districts and ESDs can express interest in participating.