Sean C. Morgan
School District 55 can expect to receive more than it budgeted this year in state revenues meaning that some programs may be restored and potential raises for its staff, but it will come with a price, a likely increase in taxes.
District 55 made program cuts this year to meet an anticipated decrease in state revenues. This followed decreasing revenue projections over the course of the last year.
A budget deal within the Oregon Legislature was in the works on Friday funding education at approximately $5.25 billion statewide, Rep. Jeff Kropf, R-Sublimity, said. Whether that number is firm, “I don’t know. It’s an extremely fluid environment.… It’s crunch time, and everything changes moment by moment.… I would say there is increasing momentum to sending out some kind of tax increase.”
The legislature would need to raise about $700 million in taxes to get this proposal done, Rep. Kropf said. “I am adamantly opposed.”
Rep. Kropf favors a no-new-taxes approach, though he is sure a tax increase will be included. He also figures a budget deal will not be completed until after Aug. 28’s revenue forecast is released. Until a budget deal is reached, the state will be able to continue funding schools at the current level. Just because a budget has not been completed, the state is still receiving revenues that can be managed at last year’s levels.
District 55 created its budget for 2003-04 based on statewide funding of $4.78 billion.
The state will meet the basic goals education model target numbers at $5.179 billion, Rep. Kropf said. A plan he endorses would fund education at $5.179 billion. With savings under new Public Employee Retirement System (PERS) legislation, it would mean $5.3 billion in revenues to districts. This includes $83 million in additional property taxes from the elimination of the early payment discount in the biennium.
“From my perspective, I think that’s enough,” Rep. Kropf said. Districts might be in better shape “if local school boards had held the line (on insurance and pay) like we did.”
Although he favors local control of school districts, “I have a fiduciary responsibility to my constituents,” Rep. Kropf said. He listed a number of large companies that laid off employees, did not give out raises or even reduced pay.
“Some people in the public sector need to step up to the plate like the private sector and just make do with what they’ve got,” Rep. Kropf said. “Local school districts have decided not to go that route.”
The budget deal under discussion Friday, $5.25 billion, did not include potential PERS savings, which may be challenged in court.
Sweet Home faced fewer cuts than other districts earlier this year, but the district did make some cuts. The district planned to spend some $300,000 of its $750,000 in cash carryover for this school year along with what Supt. Larry Horton dubbed “funny money,” an accounting maneuver called “accrual” that will let the district count $240,000 this year without actually receiving it this year. That money would be sent to the district in July, 2004.
The district cut sports spending. It is receiving help from the City of Sweet Home to fund the pool this year, and it is trying to raise revenue by selling to residential lots. The district cut approximately two classified, five teaching and one administrative position.
A statewide funding level of $4.9 billion would mean another $220,000 for District 55, Supt. Larry Horton said. Every $100 million past that would mean about another $170,000 for the district, meaning the district could receive $220,000 to about $900,000 more than anticipated from the state. In addition, the district is beginning this year with about $250,000 more in its cash carryover than it budgeted.
The first thing additional funds will be used for is step increases for employees, Supt. Horton said. The district does not yet have contract settlements with its teachers and classified employees. Under state law, the district must continue the previous contract, which includes step increases.
The district had been talking with the unions about wage freezes or keeping any raises cost neutral to the district by using offsets in benefits and other areas.
The district would implement step increases for teachers on Aug. 26 when they return to work, Supt. Horton said. The district has a meeting with the teachers union on Aug. 25, but without final numbers from the state, he does not anticipate a settlement that day.
After that, the district will begin looking at programs and staff cuts and return those that make sense to add back in this year, Supt. Horton said. He expects discussion about what to restore at the School Board’s September meeting.
The district will not want to restore some cuts among personnel this year, Supt. Horton said. One would be alternative education. The district has changed its alternative education program, which will cost less.
The principal that was cut would be a low priority to restore, Supt. Horton said. “It wouldn’t make sense this time of year to make changes.”
Principals are already getting settled into their schools.
To add junior high and high school staff back now would cause problems in scheduling, Supt. Horton said. Cuts there may be added back next year if money is available.
Elementary school enrollment has been falling, and the district would have been looking at teacher reductions there anyway, Supt. Horton said.
Other uses for the money may be to eliminate the accrual, Supt. Horton said. “If there’s enough money, I’d rather not get into the funny money business.”
Much of how the money is spent will depend on negotiations with teachers, classified employees and administrators, Supt. Horton said.
“I really hope that we end up with a budget within the next two weeks,” Supt. Horton said. He would prefer bringing back needed staff prior to school starting, which is far less disruptive to children.