Oregon is going to get a bail-out from the federal government, something that had school district officials hopeful about restoring some planned cuts for the 2010-11 school year; but state revenue projections have continued decreasing, meaning local school budget cuts are likely to stand.
On Aug. 26, state revenue forecasters announced a $377.5 million decline in projected revenues for 2009-11 biennium.
In an Aug. 26 statement, Gov. Ted Kulongoski, Senate President Peter Courtney and House Speaker Dave Hunt outlined a plan to rebalance the state budget while assuring school districts that additional cuts to K-12 as a result of this forecast will not be necessary.
They pledged to maintain funding at the June level, which resulted in $1.1 million from School District 55’s 20010-11 budget finalized by the School Board in August.
“With school about to start, we want to assure Oregon families and their school districts that even with this revenue shortfall, there will be stability for school budgets, while also maintaining a responsible level of reserves for the last three quarters of this budget period,” said Governor Ted Kulongoski.
In addition to the $118 million in federal assistance recently approved by Congress, the governor, Senate president and speaker agreed that in order to protect schools, approximately $34 million of the state reserve funds will be committed to K-12 when the legislature convenes in February 2011.
The $1.1 million in cuts remains following this news, Strong said.
“Given the weak economy, it’s not surprising that income tax revenue continues to decline. We understand if the revenue isn’t there, we’re going to have to further reduce our spending to make up for it.
“I think the key thing is that we’re facing difficult economic times, and it’s very important we have a healthy private sector. Right now we’re feeling the impact from not having a healthy private sector. It’s sad that in past elections we’ve often polarized issues as public sector versus private sector. This just goes to show we need each other.”
District officials were awaiting news last month about the federal bailout money as they finalized their cuts, which included priorities for restoration. The federal money would have triggered the return of one of four school days that were tentatively cut in an effort to save money. The four days were cut in an agreement among the district, administrators, classified personnel and teachers.
“I’ve been pleased with the willingness of our staff and our community to work together in difficult economic times, and I trust we will continue to do so,” Strong said.
After the state government’s commitment to schools, approximately two-thirds of the State Education Stability Fund and Rainy Day Fund will remain in savings to address the uncertainty of the last three revenue forecasts of the 2009-11 biennium.
“It’s raining. It’s clearly the right time to use the rainy day funds we’ve set aside to protect kids, services for seniors and vulnerable Oregonians to help them through this global recession,” said Hunt, D-Clackamas County. “We are continuing to provide services for more Oregonians with less resources.”
“We’re putting the priorities of Oregon families at the front of the line. Our plan keeps the doors of our schools open and the gates of our prisons closed. It maintains care for our senior citizens, assistance for people with disabilities and healthcare for our most vulnerable,” said Courtney (D-Salem/Gervais/Woodburn). “We have taken a deliberate and cautious approach and achieved these priorities without the need for a special session.”
The governor will ask state agencies to begin developing plans to implement the cuts needed to rebalance the budget for the remainder of this biennium, which amounts to 8 percent reductions with nine months remaining in the 2009-11 biennium.
Through the bipartisan Legislative Emergency Board and the 2011 session, funding will be restored to maintain K-12 schools at their current funding level; maintain critical services for our seniors and vulnerable Oregonians; protect public safety and prevent prison closures for the remainder of the current biennium.
“This plan is fiscally responsible, provides stability and certainty for Oregonians and does not require a special session,”
Kulongoski said.
Information about cuts to specific agencies, the cost of the services the E-board will restore and the exact sequence of events will be determined prior to the E-Board meeting on Sept. 23.