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Superintendent's Office

 
  Office of the Superintendent

Dave Valenzuela - Superintendent

541-862-3111  ext.5222

Shelly Quick - Executive Assistant to the Superintendent

541-862-3111  ext.5217


SUPERINTENDENT BUDGET MESSAGE

2016-2017

As 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.

As 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.

This 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 that process.

Budget assumptions:

For 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.

• Our proposed budget for 2016-17 is $46,892,541 compared to $47,019,665 for the adopted 2015-16 budget.

• The 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.

• The 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.

• The District’s contingency fund will be $310,000, a decrease of $1,035,000 from last year.

• The 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% increase.

• Student enrollment population is estimated at a 2.2% decrease, approximately 95 less students.

• 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.

• The District contributes an average of 23.51% of salaries to the PERS retirement funds.  For 2016-2017 this will total $4,733,718.

Improvements to educational programs - this budget provides for:

·          $45,000 for library revitalization

·          $133,000 for the last payment for textbook adoption (Elementary ELA)

District Demographics-

Licensed Staff:  The 2016-2017 proposed budget includes 203.45 Full-Time Equivalency (FTE) licensed staff from the general fund.

•Classified Staff: The 2016-2017 proposed budget includes 213.33 Full-Time Equivalency (FTE) classified support staff from the general fund.

•Administrative Staff: The 2016-2017 proposed budget includes 23.98 Full-Time Equivalency (FTE) administrative staff from the general fund.

•Confidential Staff: The 2016-2017 proposed budget includes 6.0 Full-Time Equivalency (FTE) confidential staff from the general fund.

Additional Revenue-

The 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.

In 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.

In 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.

Dave Valenzuela

Superintendent Three Rivers School District