About 1,200 people who fill in as substitute teachers, instructional assistants, and custodians in Salem-Keizer Public Schools no longer work for the district.
They work for Edustaff, a national private staffing company based in Grand Rapids, Michigan.
The transition took effect Wednesday, July 1, according to a district announcement posted May 27.
Superintendent Andrea Castañeda and the district's executive team made the decision, citing persistent staffing shortages as the driving reason, Salem Reporter reported Thursday, July 24.
Salem-Keizer is far larger than most Oregon districts that have outsourced substitute management. Edustaff says it serves more than 600 school districts nationwide and already operates in Oregon. Corvallis School District, which serves about 6,800 students, partnered with the firm in 2018.
Its substitute pool grew 54% in the first year, according to a case study published by Edustaff itself.
What changes for workers
Substitutes who completed the switch before July 1 kept their accrued sick time and will continue earning the same pay rates the district previously set, according to the district's announcement.
Edustaff now handles onboarding, payroll, and day-to-day support.
Workers who did not complete the transition by the deadline cannot continue serving as substitutes in Salem-Keizer schools.
The district required applicants to schedule a 30-minute "Right Start Meeting" at the Portland Road Professional Center, 4760 Portland Road NE, during sessions held in late May and early June.
Budget pressure behind the decision
The outsourcing fits a broader pattern of cost-cutting at Oregon's second-largest school district, which serves about 38,000 students. Castañeda spent much of the past year restructuring staffing to close a $23 million budget deficit for 2026-27.
An additional $5 million funding reduction hit in February when the Oregon Department of Education revised the district's state allocation.
The school board adopted a $1.12 billion total budget for 2026-27 on June 9, which included staff reductions and what the district called "district efficiencies."
"We anticipate the coming years of K-12 funding in Oregon will be lean, and though we have made difficult spending reductions, we still have to rely on using our reserves," Castañeda said when the board adopted the budget. "The state is not keeping pace with the rising costs of running schools."
What's next
Edustaff-employed substitutes will begin working in classrooms when school starts Tuesday, September 8, for grades 6 and 9, and Wednesday, September 9, for all other grades.
The district is still recruiting substitutes through Edustaff, with signs posted at Sprague High School as of July 21 directing applicants to the company's website.
