News and Opinion from Sisters, Oregon
News and Opinion from Sisters, Oregon
"The amount the state sent us (for the current 1995-96 school year) was less than the state said they would send us, and less than we budgeted," said Sisters School District Business Manager Earl Armbruster.
"We had budgeted to receive $1,735,131 for state school support funds for this school year. We actually received $1,548,420, about $186,711 short," said Armbruster.
"We have a cash flow problem. We are running out of money. That $186,000 didn't show up and we still have obligations, such as payroll, telephones, lights and fuel," Armbruster said.
While the Sisters schools did receive a refund of about $27,574 from the 1994-95 school year, the state also informed Sisters that the district is likely to receive about $30,000 less next year, 1996-97, than anticipated.
Next year's budget has already been slashed to cover pay increases guaranteed during salary negotiations this year.
Cocurricular has been reduced from $147,558 in the 1995-96 budget to $128,019 in 1996-97. One of two school nursing positions has been dropped. The budget has been cut for teaching assistants as well as for other classified positions, such as custodians.
Armbruster talked to Walter Koscher, Coordinator of School Finance and Data Information Services with the Oregon Department of Education, on Friday, May 17.
"He indicated the major problem was we had more children enrolled in the state of Oregon than they had projected. Therefore, they had to split the pie into smaller pieces. Everyone got less per kid than they anticipated," Armbruster said.
The Bend-LaPine Schools also took a hit. According to Al Frickey, Assistant Superintendent with the Bend School District, Bend schools will see a drop in $470,000 in revenue next year as a result of the adjustments.
Sisters received information about the shortfall on Monday, May 13. Since that time, Armbruster has been meeting with principals Dennis Dempsey, at Sisters Middle/High School and Tim Comfort at Sisters Elementary.
"We have been gnawing and chewing on this. The biggest impact will be on next year's budget. We will not have money to carry forward as we had anticipated," Armbruster said.
"We had projected to carry $150,000 into next year's budget. That $150,00 has disappeared. Now we have to go into the budget and find another $150,000 if we want to keep a contingency," Armbruster said.
With no contingency, he indicated, there would be no cash to cover expenses if the same type of shortfall or other problems arose next year. "If the state figures are again $100,000 in the hole in May, 1997, there is no way I can make that up. In fact, our auditor (Dick Donaca of Donaca Battleson & Co.) has said he feels we should have more than $150,000," said Armbruster.
While the final figures are not in for locally collected property taxes, they are unlikely to erase the impact of the state funding shortfall.
"Right now we are looking at options we might have at all levels. We are also waiting to see the outcome of the bond election," Armbruster said.
If it passed (the election was tallied after the deadline for this story) the bond could allow the district to pay off some long term debt and leases which could free up $120,000 in the 1996-97 budget, he indicated.
Other than that, the district is probably looking at further cuts in cocurricular activities and possibly teacher cuts at a time of anticipated enrollment growth.
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