Budget Overview2004-2005

PARKROSE SCHOOL DISTRICT

MARY LARSONDIRECTOR OF BUSINESS SERVICES

MICHAEL TAYLOR SUPERINTENDENT

JANUARY 26, 2004

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

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

Enrollment History

Prescott Russell SacramentoShaver Middle High TotalSept. 419 384 408 423 959 1121 3714Oct. 397 391 441 424 907 1091 3651Nov. 405 389 447 424 898 1061 3624Dec. 405 389 447 425 898 1057 3621Jan. 402 390 437 419 897 1031 3576Feb. 402 390 437 419 897 1033 3578March 411 396 436 408 884 1026 3561April 406 396 438 417 882 1016 3555May 406 391 438 412 875 994 3516June 406 391 439 412 875 994 3517

Prescott Russell SacramentoShaver Middle High TotalSept. 373 386 434 390 891 1181 3655Oct. 377 390 435 383 891 1173 3649Nov. 376 397 427 393 871 1137 3601Dec. 367 398 425 385 859 1111 3545Jan. 370 404 434 387 868 1115 3578Feb. 0 0 0 0 0 0 0March 0 0 0 0 0 0 0April 0 0 0 0 0 0 0May 0 0 0 0 0 0 0June 0 0 0 0 0 0 0

Enr ol l ment 2003-2004

Enr ol l ment 2002-2003

Enrollment History Five Years

Enrollment History- 5 Years

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1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

School Year

To

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istr

ict

En

rollm

ent

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”

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

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

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

Parkrose’s estimated revenue was reduced from $3.4 million to $2.6 million

$863 versus $618 per student county wide

Multnomah County I-taxUsed For

Restore staffing in the schools – a total of 19.2 FTE

Classroom sizes average 26:1 elementaryOutdoor School reinstatedAdded support staff for English Language

Learners, technology and elective classesReplaced outdated math textbooks

Multnomah County I-taxUsed For

Textbook adoption cycle currentTechnology replacement fundedElementary Custodial positions reinstatedBuilding sustainability for three years and

stretching I-tax to four years

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

Parkrose’s 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

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

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

Potential Revenue Shortfall

Revenue Shortfall Causes – Ending fund balance decline– If State tax increase is repealed - $2.2 Million– County collections for I-tax

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

General Fund Revenues 2004-05

$5.2 BILLION FEBRUARY BM 30 DIFFERENCESTATE FUNDING ELECTION FAILURE

PROPERTY TAXES $11,750,000 $11,750,000TRANSPORTATION $30,000 $30,000INTEREST INCOME $175,000 $175,000EXTRA CURRICULAR $51,500 $51,500LOCAL REVENUE $6,000 $6,000MESD TRANSIT $95,000 $0 -$95,000COUNTY MCIT $2,682,488 $3,998,455 $1,315,967CITY BIT $310,825 $310,825STATE SCHOOL SUPPORT $10,974,026 $8,771,892 -$2,202,134DRIVER EDUCATION $4,000 $4,000MEDICAIDE REVENUE $40,000 $40,000TRANSFERS $10,000 $10,000BEGINNING FUND BALANCE $2,723,230 $2,723,230

TOTAL GENERAL FUND $28,852,069 $27,870,902 -$981,167

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

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

Summary

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

REMEMBER TO VOTE

2004-05 Budget Process

ACTIVITY DATE RESPONSIBILITY

BUDGET PREPARATION JANUARY/FEBRUARY DISTRICT STAFF

SET FISCAL GOALS FEBRUARY BOARD OF DIRECTORS

ESTABLISH ALLOCATIONS FEBRUARY DISTRICT STAFF

SPECIFIC BUDGET DEVELOPMENT FEBRUARY/MARCH BUILDING STAFF

SITE DEVELOPMENT WITH CSIP PLAN MARCH BUILDING STAFF

PRESENTATION OF BUDGET TO COMMUNITY MARCH/APRIL BUILDING STAFF

DISTRICT BUDGET DEVELOPMENT MARCH/APRIL DISTRICT STAFF

PRESENTATION OF BUDGET TO COMMITTEE MAY DISTRICT STAFF

BUDGET COMMITTEE APPROVAL MAY BUDGET COMMITTEE

ADOPTION OF BUDGET 2004-05 JUNE BOARD OF DIRECTORS

Conclusion

QuestionsPresentation at www.parkrose.k12.or.usContacts:

– Mary_Larson@parkrose.k12.or.us– Michael_Taylor@parkrose.k12.or.us