DATE: September 5, 2003
TO: Creswell School Board
FROM: Judy Hillman, Business Manager
2003-04 School Funding
I don't have definitive answers to give you on school funding. ODE had expected to have estimates out, but they have had to seek a legal opinion regarding a portion of the formula. They hope to have something out early next week.
OSBA is cautioning school districts that the portion of this budget not affected by the income tax surcharge is $4.8 billion. Keep in mind, we've been estimating $100,000 per each million of state school budget, but that is per year of the biennium. It could be a double hit for 2004-05 if the tax goes to a vote and fails, because at this point the plan is to take the entire reduction in the second year of the biennium.
I have enclosed a Hot Topics sheet sent out by OSBA detailing the state school funding as it stands now.
The first box at the top of the page is a summary section.
Line 1 The General Fund/Lottery/Local Revenue portion is front loaded for 2003-04 by about one million more than 2004-05. This line item includes the new income tax surcharge.
Line 2 The Education Stability Fund is a little hard to nail down. I've been told it was created because the legislature wants to have a say in how the districts spend the money. It will come with strings attached, but it is unclear what the strings will be.
Line 3 The combination of those two lines total the $5.21 billion projected for the biennium.
Line 4 There is an additional $100 million subject to economic triggers in the second year.
The second box shows a breakout of the funding sources.
Line 1. General Fund includes the new income tax surcharge.
Line 2. Lottery Fund, projects an increase in lottery revenue. $22 million is projected by increasing the number of poker machines in bars and taverns from 5 to 6 machines. The source of the remainder of the increase has not been determined, because the choices are politically unpopular.
Line 3. Other Fund--local revenue deposited into the State School Fund. Evidently this will be a result of property tax discounts and deferrals that have been eliminated. I don't understand why the first year is so low, and the second year is so high, and I haven't been able to get an explanation yet.
The Education Stability Fund and amounts subject to trigger are the same as in the first box.
Business Office Report
September 03 Board Meeting
Energy Conservation Projects
Senate Bill 1149 has been in effect about three years. It created a Trust through the Office of Energy to fund energy conservation measures. It is funded by a surcharge on monthly bills of customers of specific utility companies. An amount determined by the district ADM is set aside. The current balance for Creswell is $15, 946. Payments into the trust are scheduled to continue for about nine more years.
The State contracted with Willamette ESD to coordinate the projects. A survey of the schools in the District was competed in March 2003. The study has been paid for with money set aside in the Trust for our district.
If the district decides to go ahead, the ESD will proceed with final bids for the work. The district will take out a loan or pay for it out of our Capitol Project Fund. The district will then bill Willamette ESD quarterly over the next 10 years to recoup 80% of the cost of the measures.
Two summaries are included with Item 16 of the Board Packet. One is a scaled down project for lighting only. The other includes the lighting and other measures at an additional cost of about $4,000. The Finance Committee has recommended that the District proceed with the entire project.
The first page of each summary breaks the conservation measures down by building, lists each measure, the cost, the annual savings, and the number of years it would take to pay for itself. The next two pages detail the budget. The line item BETC shown in the Project Revenue section at the bottom of the page means Business Energy Tax Credits. Businesses can contribute to the project in exchange for the tax credits. Willamette ESD would help with the procedure for the BETC. They may have companies available for our project, but are not sure at this time.
If you have questions, please call. I will contact Jim Bell at Willamette ESD and get answers. We do have a copy of the complete report available. It is about 45 pages long per building.
Food Service Supervisor
Susan Ogawa has been hired as the Food Service Supervisor, subject to Board approval. She was a houseparent and cook at Looking Glass Transition Shelter for about three years. She owns her own fabric and design business. From 1979 to 1997 she was a teacher at Thurston High School's Family and Consumer Studies Department and was named Vocational Teacher of the Year in 1993. Everyone I talked to about her gave very impressive references. Her work here has also been impressive. She really hit the ground running. She is going to be great to work with.