Over 32 years in education, School District 55 Supt. Larry Horton has never seen a funding crisis like the one that governed the construction of the 2003-04 budget.
The district budget committee approved the proposed budget on May 6. The budget must be published, and the School Board must hold a hearing before adopting the budget on June 9.
The 2003-04 budget was based on a $4.8 million state funding level, the same provided in 1999, Supt. Horton said. “This is a major step backward for the quality of education in the State of Oregon. School districts all over our state are cutting programs, support personnel, days of instruction, administrators and teachers in an attempt to keep the doors of our public schools open.
“The state’s economy is at one of its lowest points. Our own community has been deeply impacted. More and more of our parents are facing the hardships and stresses of reduced working opportunities and unemployment. More and more of our families are in need of assistance. Our local food banks are regularly falling short of the demand placed upon them.”
Oregon’s economic picture has presented quarterly challenges to the district this year, Supt. Horton said. Each decline in projected revenues was accompanied by a decline in school funding. With that, Supt. Horton started the budget process in November by asking staff for possible reduction ideas. Those were shared with the board, staff and community at three work sessions and board meetings. Those ideas were used to develop the budget.
“You will hear recommendations that are not conducive to a quality educational system,” Supt. Horton said. “However, given the current conditions and funding levels provided to the Sweet Home School District, these are the best recommendations that can be made at this time.”
The approved general fund budget, the majority of the district’s budget document, is about $14.9 million down from $15.7 million.
Total district budget is $32.5 million. Of that, $14.9 million is part of the district’s facilities improvement bond, approved by voters two years ago. The remainder of the budget is in special funds, including grant programs.
State revenues are up slightly for the budget from $10.6 million to $10.7 million. The main difference in funding for the budget is in the beginning cash balance, or carryover from the previous year. In 2002-03, the current budget year, the district had a beginning fund balance of $1.7 million.
Approximately $1 million of that was used to offset revenue reductions and balance the budget in the current year. The district will have a carryover of about $750,000 in 2003-04. About $300,000 of that carryover will be used to help balance the budget.
Other steps taken to balance the budget for 2003-04 were reductions in programs, savings in some line items, reduction in the carryover and “accrual,” a special accounting maneuver authorized by the legislature to count state payments in June. Those payments will actually be made in July, the beginning of the next fiscal year.
The budget includes the accrual of some $205,000.
The budget offsets some of the revenue shortfall with about $250,000 reduced payments for PERS costs through two bond pools it has joined to finance the retirement funding shortfall.
The district hopes to raise at least $43,000 through the sale of two residential lots. The budget reflects the sale of only one since it may be assuming too much to think both will sell given the local economy.
Among reductions were the swimming pool at $30,000. The City of Sweet Home budget committee has agreed to fund $20,000 for pool operations this year, and Supt. Horton believes the district will be able to find the remaining $10,000 to keep the pool open for the three months it was to have closed.
Supplies and materials were reduced by about 10 percent, about $40,000. The junior high sports program was reduced by $8,000, about 20 percent.
The high school sports program was cut by $20,000, about 10 percent.
Assistant time has been reduced by .94 full-time equivalents (FTE), about $15,000.
The talented and gifted assistant was reduced by .6 FTE, about $10,000.
Secretarial time in the superintendent’s office was reduced by .25 FTE, about $7,000.
One administrative FTE was reduced for $93,000.
Alternative education was reduced by $5,000.
Secretarial time in the Instructional Services Department was reduced by .25 FTE for $7,000.
Custodial time was reduced by .5 FTE, $13,000.
Energy costs were reduced based on conservation efforts by $30,000.
The district reduced teachers by 5.33 FTE, $215,000.
Supt. Horton reduced his salary by 4 percent, $7,800.
Textbook funds were reduced by $35,000.
Several issues remain unresolved. At this time, the legislature has not adopted a balanced budget for the new biennium, 2003-05. The district remains in negotiations with both teachers and classified staff, but the budget document assumes a pay freeze, and new PERS rates may be affected by legislation and a court challenge.