School board sets budget as it heads into labor negotiations

Representing the 10-member school budget committee, committee chair Jeff Smith made a final budget recommendation to the school board Wednesday night. The recommendation of a $15 million total budget was approved by the board on a 5-0 vote. The budget committee was thanked for their work and dissolved.

As recommended, the budget represents a $500,000 cut from last year's budget. That represents less than the $800,000 shortfall than was projected in recent months. Business manager Sandy Tartaglia explained the difference to The Nugget:

"Since our original Financial Impact Analysis for the 2014-15 budget that we did back in December, the following projected revenues have been increased :

• Beginning fund balance was increased by $100,000. (This is from a spending freeze this year to increase our ending fund balance that would carry over to next year.)

• Projected tax revenue was increased by approximately $70,000 based on updated projections.

• Transfers were increased by $120,829 from reserves (originally projected to be $97,400 less than this year's budget).

• State School Fund increased by $40,000 due to prior year's finalized payments to be received next year.

"These are the major areas where we were able to lessen the shortfall. The remainder of the budget was balanced by cutting salaries and associated payroll costs."

The budget committee is made up of five community members, living within the school district boundaries, appointed by the school board to three-year terms, along with the five elected school board members. They serve as the district fiscal-planning advisory committee. The budget committee reviews and approves the budget document to be presented to the board for final adoption for the upcoming school year beginning July 1 of each year.

At the school board meeting that followed, Superintendent Jim Golden shared his views on the current shortfall.

Golden said, "The 2007 enrollment was 1,376. We are down 234 kids from that number as of this month. That is the source of the challenge. However, we have only six less kids than last year. Sisters Elementary is up 35, Sisters Middle School is down seven from last year, and Sisters High School down 34 from last year.

"Enrollment is a major issue. This is the result of the structural issues (in Sisters) of affordable housing and jobs. The budget cutting is in no way reflective of poor practice. In fact I would give our employees miraculous grades for maintaining and even improving instructional outcomes for our kids given the amount of cutting we have done," said Golden.

The superintendent will now move into negotiations with the certified and classified labor unions to determine what combination of reduced expenses, school days and personnel will be needed to achieve the approved budget.

In other board news: The board approved an agreement with the City of Sisters for an easement to allow for the construction of a 20-foot-wide multiuse path (10 feet paved) between the Timber Creek/Rolling Horse subdivision and the Larch Street entrance to Sisters Elementary School.

Funded by an ODOT grant spearheaded by City Public Works Director Paul Bertagna, the fenced path will run along Highway 20 roughly from the southeast corner of the Sisters Elementary School grounds, to the corner of Larch and Highway 20. The City will extend the existing sidewalk to meet the path.

The agreement was approved by the City council the following evening.

Bertagna indicated that the bids for the project will be in by May 15, and construction will start shortly after. The path will be ready for the beginning of school in the fall. The City will present details once the project is finalized.

On the financial front, board chair Don Hedrick announced the formation of a task force to research and make recommendations for a possible school bond election in November. Paperwork must be submitted to the county in early September so the task force report will be reviewed at the July board meeting.