The Oregon Senate has voted down a $6.55 billion budget for primary and secondary schools after one Democrat and all 14 Republicans said it didn't provide enough money.
The vote on Monday complicates efforts to put together a state budget.
The budget would have increased school funding by $1 billion and allowed most school districts to avoid cutting teachers or school days.
But Republicans refused to support the budget without steeper cuts in public-employee pensions, which would allow school districts to save money on retirement costs.
Democratic Sen. Chris Edwards of Eugene joined GOP opponents, saying his district was one of a handful that would still face budget cuts next year. Edwards wants a combination of pension cuts and increased tax revenue