Schools alerted to economic woes

A slumping economy may take the wind out of the sails of the smooth-riding Sisters School District budget later this year.

An economic slowdown in Oregon may leave the state's general fund strapped for cash, facing a possible cut in programs of $211.8 million.

Schools superintendent Steve Swisher presented the bleak forecast numbers from the Oregon Department of Administrative Services at the school board meeting on September 24.

The state general fund provides the lion's share of school support funds. Almost half the budget goes to the schools.

While the forecast could translate to an estimated loss to the school district of $600,000 over a two-year period, Swisher cautioned that the real impact is speculative and the economy could well pick up.

"I'm not putting out the panic warnings to the district, but it's prudent that we be prepared," Swisher said.

He acknowledged that the district would have to start looking at cuts in January if the picture does not improve.

Sisters budget has filled out with has local option tax dollars. However, a worsening economy could wipe out the gains made.