Oregon's school system ranks 48th in the nation, according to a study released on July 21.
The finding underscores the challenges facing districts like Hillsboro, which cut $20 million from its 2025-26 budget to address a structural deficit.
The personal finance company compared all 50 states and the District of Columbia across 32 metrics measuring school quality and safety.
Oregon landed fourth from the bottom, behind only New Mexico, Alaska, and Oklahoma.
The numbers are stark. Oregon ranked 45th in fourth- and eighth-grade math scores, 44th in reading scores, and 43rd in pupil-to-teacher ratio.
The state also placed 45th for school safety and 49th for the share of graduates taking the ACT or SAT.
"Oregon's ranking as the fourth-worst school system in the country reflects weaknesses across several school-quality measures rather than one glaring deficiency," WalletHub Analyst Chip Lupo told KOIN 6 News.
He noted that while Oregon ranks 10th nationally for its share of licensed and certified teachers and 22nd for median SAT scores, "those strengths are outweighed by below-average academic outcomes and limited classroom resources."
WalletHub identified Oregon as part of a cluster of states it says spend heavily on education but produce weak results.
Hillsboro's budget picture
For the Hillsboro School District, the statewide rankings arrive during a period of financial strain. The district made staffing and programmatic decisions to reduce its 2025-26 budget by $20 million compared to what a status quo budget would have required, according to the district's Budget Matters page.
The gap: state funding grew 11% in the 2025-27 biennium, but HSD expenses grew roughly 18%.
Oregon funds K-12 schools based on enrollment through Average Daily Membership, meaning declining enrollment directly reduces district revenue. The district has said it anticipates further budget reductions heading into the 2026-27 school year.
State response
Oregon Department of Education spokesperson Peter Rudy pointed to the Education Accountability Act, passed in 2025, as a framework to hold districts accountable and track progress in real time.
Rudy said the state's most recent graduation rate showed "the highest on-time completion rate in state history" and cited improvements in third-grade language arts and eighth-grade math proficiency.
Gov. Tina Kotek said at a July 14 press conference in Portland that her forthcoming 2027-29 budget would prioritize education and summer learning programs.
The Oregon Legislature made summer learning grants permanent in 2025, allocating $35 million for 2025, $35 million for 2026, and $12 million for June 2027 through House Bill 2007.
Kotek also suggested lawmakers may tap state reserve funds, including the $1.27 billion Education Stability Fund, during the 2027 legislative session.
