I write this budget message our district is piece by piece slowly adding back
programs and supports for student learning and our employees that had been
eroded over the last recession.
we move into the second year of the state funding biennium our budget is being
constrained by flat revenues and declining enrollment as expenses rise around
us. The state budget of a 50/50 split in
revenue payments to districts for this biennium has had an impact on this
budget. Historically the state would
budget a 49/51 split for a biennium that would help districts offset increases
in inflation and growth in salaries with employer related costs in the second
year. As a district we budgeted more traditionally
within our own budget to account for and offset this flat funding level to some
degree. As you will see farther back in this document, our total general fund
revenues actually went down by about $127,000.
Due to great stewardship across the district we’ve been able to
accumulate an ending fund balance this year estimated at 2.55 million
dollars. These dollars are what enables
us to present this, what I believe is, a fairly positive budget.
budget maintains all programs and improvements to student services that we’ve
been able to add back over the last two years. In addition we have been able to
cover the roll up costs associated with an average of 3% in salary increases agreed
to with our various associations over the last two years. So while this budget
is not exciting in ways that expand services or create new ones, it does
maintain all previous commitments. As recent as three years ago, our various employee groups had lost
over 35 work days and had not seen a salary increase for over 6 years. Through the bargaining process our various
bargaining groups have repeatedly asked that their associations be one of the
more important considerations when creating future budgets. This budget sets aside almost 1.1 million
dollars in future association benefits.
Through the upcoming bargaining process the specific allocation of those
funds may change but they are currently designated for association’s benefits, awaiting
the upcoming year, Three Rivers’ portion based on the Oregon Department of
Education’s calculation model of the state school fund is $44.3 million. This is based on funding created by our
current district wide ADMw as we are in a state of declining enrollment. We
estimate that decline to be approximately 95 ADM. The best case scenario would
be that our enrollment flattens and we do not lose additional students in the next
school year. Therefore, the funding will
be determined based on this year’s current average enrollment.
Again, the District’s proposed budget for 2016-2017 is based on the current
state school fund of $3.75 billion. The average daily member weighted [ADMw]
student population is 5,618 including charter schools; the district estimates
receiving $43,257,041 in total formula revenue, which includes property taxes,
transportation reimbursement, and charter school funding.
proposed budget for 2016-17 is $46,892,541 compared to $47,019,665 for the
adopted 2015-16 budget.
total revenue per student will increase from $7,541 per student to $7,669 per
student. This is a $128 per student increase
from the previous year.
District will have an estimated ending fund balance of $2,550,000 at the end of
the fiscal year on June 30, 2016 that constitutes the beginning fund balance
for 2016-2017 and is 5.4% of the budget.
District’s contingency fund will be $310,000, a decrease of $1,035,000 from
cost to maintain current programs, referred to as our “roll-up” cost, will be
approximately $1,733,363 over the current year’s budget, representing a 3.9%
Student enrollment population is estimated at a 2.2% decrease, approximately 95
Licensed and classified employees will be negotiating contracts this year. The District pays medical insurance at $985
per month for all employees. This roll
up cost is contained within this budget without any increase. Employee salary and benefit costs are subject
to the negotiation process. Step raises
have been included in this budget but no amount for COLAs.
District contributes an average of 23.51% of salaries to the PERS retirement
funds. For 2016-2017 this will total $4,733,718.
to educational programs - this budget provides for:
for library revitalization
for the last payment for textbook adoption (Elementary ELA)
• Licensed Staff: The 2016-2017 proposed budget includes 203.45
Full-Time Equivalency (FTE) licensed staff from the general fund.
Staff: The 2016-2017 proposed budget includes 213.33 Full-Time Equivalency
(FTE) classified support staff from the general fund.
Staff: The 2016-2017 proposed budget includes 23.98 Full-Time Equivalency (FTE)
administrative staff from the general fund.
Staff: The 2016-2017 proposed budget includes 6.0 Full-Time Equivalency (FTE)
confidential staff from the general fund.
state school fund, local taxes, federal forest fees and the beginning fund
balance comprise the majority of the general fund revenues. The District will
also receive approximately $285,500 in other revenue. This includes tuition,
gate receipts, participation fees, user fees for facility use, miscellaneous
donations and interest earnings. In addition the Southern Oregon Education Service
District provides $800,000 in service credits.
addition, the district projects it will receive approximately $200,000 from
Construction Excise Tax receipts. These
funds may be used to address district wide capital projects approved by the
board in the long range facility plan. The ending CET fund balance on June 30,
2016 will be approximately $300,000. The
total available for long-range facility projects during the 2016-17 school year
would be the sum of those amounts.
conclusion, we believe that this budget continues to represent a step forward
in the resurrection of many student services, educational opportunities and a
move toward creating first class educational environments in every school
across our district.