News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
Figures developed by school business manager Earl Armbruster indicate that even with no growth in student population, programs may be cut as soon as next year just to meet current financial obligations.
The long range planning committee recommended that the district expand the elementary school, use the administration campus for the seventh and eighth grades and introduce year-round education (YRE).
Last November voters turned down a $5.5 million bond request to expand the elementary school without YRE ($3.5 million) and for capital improvement projects ($2 million).
The long range planning committee has determined that even if voters approved a $7.1 million, 400 student middle school for grades 6-8, along with a $3 million capital improvements proposal, the district couldn't afford to turn on the lights or heat the classrooms.
Several weeks ago the school board asked business manager Earl Armbruster to develop figures on what it would cost to operate the two options.
According to those projections, which include increased revenue from enrollment growth, in 1998-99 -- with a new middle school on line -- the district would have a shortfall of $302,181.
This includes only operating costs, and does not include any costs of construction.
If the district instead adopted the long range planning option, the operating shortfall would be $191,556 with YRE, and $102,976 without (but without YRE, the elementary school would already be out of room in that 1998-99 school year, according to Armbruster).
It may not matter. For years, the district has been making up a shortfall between revenues and expenditures from the unappropriated ending fund balance, or cash-carryover, which was $692,000 in 1992-93 and was set at $226,699 for this year, 1995-96, according to Armbruster.
Depending on revenue from the state, "It is a possibility that all of the cash-carryover will be needed in 96-97 to balance the budget," Armbruster said.
He cautioned that there are no areas of painless cuts and said he would like to see some unappropriated money to carry the district through a small emergency .
"Basically we have cut the supply budget back over the last couple of years. Expenditures cannot exceed revenues. It is against the law, so that leaves you with personnel," Armbruster said.
Therefore, there may be no money for the additional teachers, support staff or administration required for either a new middle school or expansion of the elementary and relocation of seventh and eighth grades.
There may in fact have to be cuts in these areas or in other programs, such as high school sports, with no growth at all in student population.
Board chair Bill Reed said the school board will meet this week in a workshop to review the figures, with some action anticipated at a school board meeting set for February 5.
"We are coming very close to using up our ending fund balance. With no cash carry-over, coupled with increased expenses, we are going to hit the wall in the next budget session," Reed said.
"We basically have three options: (1) to go with the long range planning committee proposal and submit the same proposal (that was defeated last November) to the voters, with some modifications; (2) to pursue a middle school; or (3) do nothing but go forward with the maintenance bond," said Reed.
Reed said he felt it is critical to go forward with the maintenance bond, which will transfer some costs out of the current operations budget and allow the district to fund improvements which will decrease other costs.
Proposed expenditures include roof work on the elementary and intermediate schools, fences to prevent costly vandalism, an irrigation system (including a new well,) a new bus barn, investments in technology education and equipment replacement.
"As to whether we proceed with a middle school or YRE, perhaps we should hold off six months until the next budget session," Reed said.
"Based on the numbers Earl has prepared, we will have a difficult time, whatever we do."
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