Sean C. Morgan
School District 55 is anticipating an unexpected boost to its funding this year, which should help maintain programs next year.
“The Sweet Home School District received good news on Feb. 27 when the Oregon Department of Education released its latest school revenue forecasts,” Business Manager Kevin Strong said. “Based on the state estimate, the district will receive a modest increase in this year’s funding. This additional revenue will help offset a portion of next year’s reductions.
“I’m hopeful that we will be able to hold the line on programs and staffing through the 2004-05 school year. That’s our goal as we prepare next year’s budget.”
The state is projecting that Sweet Home will receive approximately $500,000 more than was forecast last fall, Strong said. In comparison, Sweet Home’s funding is forecast to decrease by $1.9 million next year. Sweet Home will need to draw down on its general fund balance to make up the difference.
The forecast changes are the result of three factors, including the following:
— The state’s school funding formula provides additional support for special education students. The formula limits the number of special education students that are counted to 11 percent of the district’s average daily membership.
Sweet Home has 14 percent of its students enrolled in special education programs. It successfully applied for and received a waiver, which gives the district additional support for all of its special education students.
— Enrollment declined statewide, which means the state’s pool of money is spread among fewer students, boosting per student revenues from where they would have been.
– State revenue projections have improved.
The district also hopes to use a portion of the additional revenues to settle employee contracts for this year and next, Strong said. In addition, the district must set aside some funds to prepare for a 19.9 percent increase in the district’s Public Employees Retirement System debt service payments, which will occur in the 2005-06 school year.
Having sold bonds to help cover PERS obligations, the district is facing a smaller increase than districts that did not enter the bond program, Strong said. The increase in PERS spending will use about $300,000 of the additional revenues.
“That leaves us with $200,000 that we can spend on settling employee contracts, maintaining programs and staff levels (while) paying higher insurance and utility expenses,” Strong said.
The district also has received a school facilities grant related to the construction bond project. The $141,000 grant may be used to furnish and equip the high school, which is scheduled for completion next summer.
“Right now, we’re just starting to work on preparing next year’s budget,” Strong said. “There’s still a lot of uncertainty.? I believe we can still maintain an ending fund balance above 3 percent.”