School budget slashed another $1.3 million

The combination of a fourth straight year of significant budget cuts and the fifth straight year of decreasing enrollment has created a $1.3-million deficit in the Sisters School District budget.

"The two major reasons for this reduction are a drop in enrollment and increased operating costs ... due to (increased) retirement system liability (PERS)," said Superintendent Jim Golden.

Golden's address to the kick-off meeting of the budget committee Wednesday included four primary recommendations to reduce costs: 1) a reduction of as much as 20 work days for the classified (non-teaching) staff; 2) cutting five school days; 3) cutting 6.2 teaching positions; 4) using up the balance of the district's reserve funds.

"Our hope in creating this budget is to maintain what makes Sisters unique ... small class sizes, individualized student/staff relationships, arts, music, and other co-curricular activities," said Golden. "Even with the proposed cuts, Sisters School District will still have more student contact days than most schools in the state."

The cut in school days does not necessarily mean a reduction in the number of days the students are in class (contact days). In the past the cuts have come from a negotiated mix of contact days and non-contact days (teacher in-service, prep, and parent-teacher conference days).

Losing teachers in times of declining enrollment does not necessarily cut into the teacher-to-student ratio that Sisters schools now enjoy (one of the best in the state). The "local option" provides about $1.2 million in additional funds to the district. This equates to 10 to 12 additional teachers. While teachers in Bend-La Pine high schools now see over 200 kids per day, Sisters high teachers still see less than 120 students per day, significantly increasing the opportunity for one-on-one tutoring and personalized direction.

The district has been historically very conservative in their approach to budgeting, taking balanced budget cuts while maintaining a substantial "rainy day" reserve. Most of the other districts in the state used up their reserves one or two budget cycles ago. However, this budget basically eliminates the last of that rainy day fund.

"We believe we will still be offering an outstanding educational program for our students," said Golden. "However, our ability to do so after this school year will be impossible without the passage of the local option in 2013, and some form of relief from the Oregon legislature."

The decline in enrollment is not projected to recover until at least 2014. Enrollment of 1,160 is down 95 students (at $6,000 + per student ADM reimbursement) from the 2011-2012 school year, and down 325 from the peak 2006 enrollment of 1,485.

Golden said, "If you look at our incoming kindergarten classes, we have about 40 to 50 kids coming in, and (at Sisters High School) we are graduating 150."

The budget committee will be meeting between now and the July 1 deadline to submit a workable budget. The district is also in annual contract negotiations with both the classified and certified unions. The outcome of those negotiations will have a significant impact on configuration of the final budget.