Flanked by 14 students in the library of Roosevelt Elementary School in Medford, Gov. Ted Kulongoski signed a bill Tuesday giving $42 million in unexpected lottery revenue to the state's public schools.

The allocation, passed during a special legislative session Thursday, marks the first time in decades that lawmakers have increased school funding in the middle of the state's two-year budget cycle.

"The most important investment we can make is to make sure students get a good education," Kulongoski said. "This funding helps you achieve this objective."

The lottery money means about $63 more per student based on the state's per-pupil funding formula. It brings per-pupil spending in Jackson County up to $5,795 on average.

That equals out to $910,718 for Medford, the county's largest school district, and $4,359 for Pinehurst, the county's smallest.

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"We anticipated a budget deficit, so this will give us some breathing space," said Phil Long, superintendent of the Medford School District. "Because it's a one-time infusion and not a sustainable resource, we are going to be really careful with the money."

How the additional funds will be used in Medford schools will be determined during the district's budget process, said Larry Nicholson, chairman of the Medford School Board. The board is expected to approve a 2006-07 budget by the end of June.

Medford district officials said they want the state legislature to provide steady and sustainable funding for schools, sufficient to meet federal and state academic standards.

Adequate funding is at the center of a pending lawsuit a group of school districts and parents recently filed against the state.

Dwindling enrollment and declining state funding since late 2001 has caused some school districts to slash expenses in Jackson County and elsewhere.

Among the cutbacks, facing steep declines in enrollment the Ashland School District has shuttered two schools since 2003. Since late 2001, the Medford district has cut elementary music programs and laid off teachers, teachers aides, librarians and childhood development specialists, who work with troubled elementary students.

Kulongoski, who is seeking re-election, said he plans to recommend $6 billion for public schools in the state's 2007-09 budget, $775 million more than existing funding levels.

His proposal for an education investment fund would build the K-12 budget up to more than $7 billion by 2009-11. That is about 90 percent of what is needed to bring students up to state standards in reading and math, Kulongoski said.

During his visit to Roosevelt, Kulongoski answered questions from fourth-graders and quizzed them on their knowledge of state government.

Some of the 14 students chosen to witness the signing of the lottery bill said they see the impact of district budget cuts every day.

Fifth-grader Rachel Warren said cutbacks in funding for music programs means she can't take choir.

Elementary choir, orchestra and band are now only offered after school in the sixth grade.

Students said they also miss art and debate programs, both of which have been eliminated over the years to trim costs.

Students also complained about the school library's offerings.

There is only one copy of each book and the selection of higher-level books for fifth- and sixth-graders is limited.

"The books are kind of worn out," said fifth-grader Bryson Nelson.