Sean C. Morgan
If Gov. John Kitzhaber’s proposed budget and retirement system reforms are approved, School District 55 may receive more funding from the state in the next biennium, but it will likely be offset by increasing expenditures.
Based on the governor’s proposal, Sweet Home could expect to receive $600,000 to $800,000 more next school year, 2013-14, said Business Manager Kevin Strong.
The governor is proposing a statewide figure of $6.15 billion for the next biennium, 2013-15, up from $5.75 billion this biennium. Sweet Home’s share of that increase is three-tenths to four-tenths of a percent, Strong said. He cautioned that this is a rough estimate based on the governor’s proposal.
“Our PERS (Public Employees Retirement System) costs are scheduled to increase by almost $500,000 next year unless the legislature agrees to meaningful PERS reform,” Strong said. “Our PERS rates, even with the reform, will likely go up next year.”
The reforms mean the increase will be less, he said, and based on what he’s hearing, district officials think the proposed reforms would be challenged in court if implemented.
“Also, a proposed reduction in education service district funding along with the cost of negotiated labor agreements could add between $100,000 and $300,000 in expenses to next year’s budget.”
The teachers have negotiated a 1 percent cost-of-living increase, a step increase and a $30 per month increase in insurance benefits with the district for next school year, Strong said. The COLA is the teachers’ first since 2009.
Negotiations begin with the classified employees, who provide support services, in the spring, Strong said.
Kitzhaber’s PERS reform proposals would limit cost-of-living increases for those who receive PERS pensions to $480 per year and end a tax break for out-of-state retirees, Strong said. The proposals would save the district approximately $400,000.
“I’m hopeful that our elected officials in Salem will realize that PERS is a jobs issue and an education issue,” Strong said. “Due to the rising PERS pension costs, school districts have had to cut jobs, increase class sizes and eliminate programs. Gov. Kitzhaber’s PERS reform proposals are pro-jobs and pro-education.”
The School District will begin its budget process in January when the board meets in a work session scheduled for Jan. 9 to discuss budget priorities and issues to help staff members develop their budgets, and the board will set its budget schedule during its regular meeting on Jan. 14.