2012-13 Revenue Outlook

(An email to all staff on January 12, 2012)

Many of you have asked about the budget outlook for 2012-13, and you’ve been very patient as we’ve waited for economic forecasts and new projections to emerge. This patience has allowed us to keep an emphasis on teaching and learning, and I greatly appreciate your efforts to maintain this focus.

At the school board meeting last night, I shared an overview of what we know at this point regarding revenue for the 2012-13 school year. Here are the highlights.

The legislature allocated approximately $5.7 billion dollars for the 2011-13 K-12 State School Fund (SSF). Funds were divided for distribution across two school years:

2011-12 SSF Allocation – $2.868 billion
2012-13 SSF Allocation – $2.843 billion

As you can see, there is an overall reduction in the distribution to schools for the 2012-13 school year in the amount of $25 million. For Creswell SD, this means a reduction in our SSF allocation of approximately $58,000.

Another factor for us to consider for 2012-13 is the loss of Federal Forest Fees. You may recall that the 2011-12 school year is currently the last year of this revenue source. This year Creswell SD, received approximately $87,000 in revenue from Federal Forest Fees.

Since 2006, our beginning fund balance has slowly decreased as we used it to offset reductions in SSF allocations. Our beginning fund balance in 2006 was $1.7 million. Our projected beginning fund balance for 2012-13 is currently estimated to be $200,000.

On the plus side, we are predicting a slight increase in enrollment that could minimally offset some of the decrease in our SSF allocation.

Considering these factors and other sources that combine to determine our General Fund revenue, our preliminary estimates inform us that revenue for 2012-13 will be approximately $113,000 less than the current 2011-12 budget. While this preliminary number will likely change over the course of our budget development, I wanted you to hear this initial information sooner than later.

Over the next month, administrative staff will begin looking at projected expenditures for 2012-13. I will continue to share information as it becomes available and as we move forward with the budgeting process. Please feel free to ask questions and participate as your time permits. Your help and insight will be greatly appreciated.

Thank you again for working so hard to keep a quality focus on teaching and learning.

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