Budget Overview 20042005

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Budget Overview2004-2005

• PARKROSE SCHOOL DISTRICT
• MARY LARSON
• DIRECTOR OF BUSINESS SERVICES
• MICHAEL TAYLOR
• SUPERINTENDENT
• JANUARY 26, 2004

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Enrollment Projections

• Schools are funded largely by the State of Oregon
  based on student enrollment or weighted Average
  Daily Membership (ADMw)
• That is the sum of resident students plus
  adjustments for special education, ELL and other
  factors

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Enrollment Projections

• It appears that our enrollment this year is flat
  compared to 2002-2003
• 02-03 was 3576 (January 2003)
• 03-04 is 3578 (January 2004)
• 04-05 projected to be flat

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Enrollment History
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Enrollment History Five Years
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Flat Enrollment Growth

• Since funding is based on the number of students,
  flat or declining enrollment gives no growth for
  revenues
• Declining enrollments result with less revenues
• There is a one-year hold harmless

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Review of 03-04 Budget

• The Parkrose Adopted budget is based on 5.05
  billion Governor's budget for 03-04
• The Adopted budget included 3,457,500 from the
  Multnomah County Income Tax

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Multnomah County I-tax

• Multnomah County Personal Income Tax, passed by
  voters on May 20, 2003
• Personal income tax of 1.25 imposed effective
  January 1, 2003 on residents of Multnomah County
• 863 per student county wide

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Multnomah County I-tax

• I-tax will be reduced if State funding levels
  exceed 4.8 billion
• County officials have reduced the original
  estimates of the amount to be received from the
  I-tax
• Parkroses estimated revenue was reduced from
  3.4 million to 2.6 million
• 863 versus 618 per student county wide

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Multnomah County I-taxUsed For

• Restore staffing in the schools a total of 19.2
  FTE
• Classroom sizes average 261 elementary
• Outdoor School reinstated
• Added support staff for English Language
  Learners, technology and elective classes
• Replaced outdated math textbooks

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Multnomah County I-taxUsed For

• Textbook adoption cycle current
• Technology replacement funded
• Elementary Custodial positions reinstated
• Building sustainability for three years and
  stretching I-tax to four years

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State Funding Review

• Legislature appropriated 5.2 billion for K-12
  schools for 2003-2005 with another 100 million
  possible if revenue targets are met
• Parkroses budget is based on 5.05 billion for
  03-04 (plus I-tax dollars)
• I-tax will be reduced if state funding exceeds
  4.8 billion

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State Funding Review

• Imposed a three-year tax increase package to fund
  the State budget.
• A special election is scheduled for February 3,
  2004 on whether to repeal the tax increase package

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State Funding Review

• Repeal of the State tax measures reduces SSF
  funding by 503 per ADMw or 2.2 million less for
  Parkrose
• All of this funding reduction would occur in the
  2004-2005 budget year

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Potential Revenue Shortfall

• Revenue Shortfall Causes
• Ending fund balance decline
• If State tax increase is repealed - 2.2 Million
• County collections for I-tax

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Outlook for 2004-2005

• If the tax increase is repealed, we will likely
  face a revenue shortfall in the range of 1.0
  million to 1.5 million
• Assumes discretionary and one-time spending is
  cut from county tax funding
• Assumes halt of PERS litigation reserves
• The reductions of 1.0 million to 1.5 million
  would need to be made after the above cuts

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General Fund Revenues 2004-05
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Summary

• If the State tax increase is upheld, Parkrose can
  continue with our plan for use of the county tax
  revenue
• The District needs to carefully monitor
  enrollment trends and be prepared to deal with
  the implications of declining enrollments

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Summary

• The State tax election will be very important to
  Parkrose. A 1.0 million budget reduction cannot
  be absorbed by the county income tax and fund
  balance
• Our challenge will be to maintain current service
  levels if the tax is repealed

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Summary

• I-tax can make up some of the shortfall but will
  not fund all the state loss
• REMEMBER TO VOTE

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2004-05 Budget Process
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Conclusion

• Questions
• Presentation at www.parkrose.k12.or.us
• Contacts
• Mary_Larson_at_parkrose.k12.or.us
• Michael_Taylor_at_parkrose.k12.or.us