Budget Committee Approves 2013-14 Proposed Budget

Use of $2M in discretionary reserves will save teaching positions

 

At its meeting on Thursday, May 9, the Hillsboro School District Budget Committee approved the proposed budget for the 2013-14 school year.

 

The Committee, which is composed of all seven members of the School Board and an equal number of appointed citizens, listened to information presented by administration and asked questions over the span of more than two hours before voting unanimously to approve the budget and impose and categorize the tax rate as defined by law.

 

As presented, the Proposed 2013-14 Budget did not include the use of any discretionary reserves to help fill the $8.5 million gap between revenues and expenditures.  However, after reading his budget message, Superintendent Scott, acting on feedback and suggestions received from members of the Budget Committee, recommended that instead of using $2 million of discretionary reserves toward completing high-needs facility maintenance projects, those projects instead be paid for out of Construction Excise Tax (CET) funds, and that the $2 million from reserves be used to offset increases to the staffing ratio—which had been proposed to go up to approximately 31:1 with a loss of 38 full-time equivalent (FTE) licensed positions.  The $2 million infusion will save approximately 22 FTE licensed positions, for an overall loss of approximately 16 FTE licensed positions due to increases in the staffing ratio (commonly referred to as class size).  The other recommended reductions to licensed staff, totaling 12.2 FTE will not be affected; therefore, the total proposed licensed FTE reduction is 28.2 (down from 50.2).

 

Human Resources will now revise staffing allocations accordingly and re-release those to schools. 

 

The School Board still needs to adopt the Approved 2013-14 Budget; this is anticipated to occur at their June 11 meeting.  It should also be noted that the Legislature has not yet approved the 2013-15 K-12 budget, which could come in at, below, or above the $6.55 billion number our proposed budget was based on.  In addition, the five furlough days included in the proposed reductions still have to be bargained with our licensed employee union.

 

2013-14 Draft Budget Information Shared

Approximately 35 people were in attendance at the Listening Session at Brown Middle School on Thursday, April 25, to hear Superintendent Scott explain the projected budget realities for 2013-14. Click here to see the presentation he shared.

At an assumed statewide K-12 funding allocation of $6.55 billion for the 2013-15 biennium, along with $200 million in PERS employer rate reductions, Hillsboro School District is looking at a gap between revenues and expenditures of nearly $8.2 million next school year. This will be the sixth straight year of cuts for the District, which has reduced $61.3 million from its General Fund budget since 2008-09 to deal with shortfalls.

A list of the recommended reductions is available here. It is likely with this proposal that the District will go into layoffs; the full extent of the layoffs will not be known until all resignations and retirements have been received and Human Resources has a chance to determine staffing implications.

The public is reminded that the Legislature has not yet finalized the budget and there is still time to advocate for additional K-12 funding. Please contact your elected officials to let them know your position on educational funding.

 

Join Superintendent Scott and our Local Elected Officials for an Education Town Hall 3/21

 

Join Representatives Ben Unger and Joe Gallegos, Senator Bruce Starr, and Superintendent Mike Scott for an Education Town Hall on Thursday, March 21, from 7-8pm in the Century High School Lecture Hall (2000 SE Century Blvd., N225).  Learn more about the progress of the 2013 Legislative Session, bills that would affect education, and current thinking around the statewide K-12 budget allocation for 2013-15.  Questions will be taken via lottery system; Spanish translation will be provided.

 

 

Sequestration Update - March 8, 2013

The Oregon Department of Education sent out this update on the status of federal-level sequestration today.  It appears that sequestration cuts of 5% will affect our funding for IDEA (special education), Title 1 (low income) and other programs in the 2013-14 school year if nothing to reverse sequestration takes place in Congress.  If reductions are also made to the funding allocation for these programs (as compared to 2012-13 funding levels), the estimated net effect could be reductions of up to 10%.

 

Superintendent Scott Releases Budget Message - March 5, 2013

Superintendent Mike Scott prepared a message in response to the announcement of the 2013-15 proposed budget by the Co-Chairs of the Joint Ways and Means committee.  The Co-Chairs' budget calls for a $6.55 billion revenue allocation, and an additional $200 million in PERS Employer Rate decreases, for K-12 education.  The proposed allocation would result in a shortfall of more than $8 million in Hillsboro in the 2013-14 school year. 

 

Legislative Priority Discussion and Advocacy Training Event

The 2013 Legislative Session is currently under way. Many bills will be put before elected officials that will either directly or indirectly affect education, so we urge staff, students, parents, and community members to familiarize themselves with the issues, understand where to go to track progress in the session, and know how to advocate if they so choose.

Legislators from both parties have expressed how important it is to their decision-making process to hear from their constituents, and it doesn’t have to be time consuming or intimidating to do so.

Please join us on Monday, February 11, from 6:00 to 7:30 p.m. in the Liberty High School library (21945 NW Wagon Way, Hillsboro 97124) to learn more about some of the top education concerns and how to effectively advocate for change.

Spanish translation will be provided, and patrons from surrounding communities are welcome to attend as well.

This is a non-partisan, information-only event.

 

Hillsboro Holds Legislative Briefing

On Wednesday, January 9, Superintendent Mike Scott and the Board of Directors held a briefing with local elected officials on the Board’s priorities for the 2013 Legislative session.

In attendance were Senator Bruce Starr, Representative Ben Unger, Representative Joe Gallegos, Representative Jeff Barker, Hillsboro City Council President Aron Carleson, Washington County Commission President Andy Duyck, Washington County Commissioner Greg Malinowski, Field Representative John Valley (U.S. Senator Jeff Merkley), and Field Representative Ryan Mann (U.S. Congresswoman Suzanne Bonamici), along with several staff, Board, and Budget Committee members.

Superintendent Scott kicked off the meeting by discussing the Hillsboro School District budget situation and projections for the 2013-15 biennium based on Governor Kitzhaber’s proposed allocation to K-12 education. He then shared the Board’s 2013 Legislative Priorities (to see the full Legislative Priorities brochure, click here or visit the Budget Matters webpage):

• Support stable and adequate funding for education.
• Support PERS reforms that are deemed constitutional, lead to long-term stability of the system, and value current, former, and future public employees.
• Oppose or modify laws, mandates, or reporting requirements that do not come with the corresponding funding for their implementation.
• Revise legislation that places an undue or unreasonable burden on public schools.
• Support education funding at the federal level that aligns with mandated program delivery.

Finally, a brief discussion ensued around effective advocacy efforts. The elected officials in attendance agreed that the two most effective elements of advocacy are a common message, and personal stories from constituents.

The advocacy sub-committee, led by Communications Director Beth Graser, will be scheduling some information and training events in the coming weeks for parents, community members, and even staff who are interested in learning more and taking an active role in advocating for education in this legislative session. Stay tuned to the website for more information, or feel free to contact Beth directly via e-mail or phone: 503-844-1772.

Superintendent Budget Message 12/6/12

Following the December state revenue forecast and release of Governor Kitzhaber's budget for the 2013-15 biennium, Superintendent Mike Scott prepared a budget message for staff, parents, and community members.  The message outlines the Governor's proposal for K-12 education and what it would mean to the Hillsboro School District.
 

Board Adopts Priorities for 2013 Legislative Session

At their meeting on Tuesday, November 27, the School Board adopted five priorities for the 2013 Legislative Session: Funding—Support stable and adequate funding for education; PERS Reform—Support PERS reforms that are deemed constitutional, lead to long-term stability and sustainability of the system, and value current, former, and future public employees; Unfunded Mandates/Reporting—Oppose or modify laws, mandates, or reporting requirements that do not come with the corresponding funding for their implementation; ORS Restrictions—Revise legislation that places an undue or unreasonable burden on public schools; and Federal-Level Advocacy—Support education funding at the federal level that aligns with mandated program delivery.  These priorities will become working tools for conversations with elected officials from the Hillsboro area, and with legislative leaders in key committee assignments and leadership roles at the state and federal level.  The use of consistent priorities also makes it possible for individual Board members to participate in the process while maintaining a common voice with their fellow Directors.  Additional details are available in the 2013 Legislative Priorities document.

 

Board Adopts 2012-13 Budget, Tables Local Option Levy Ask

At its meeting on Tuesday, June 12, the School Board officially adopted the budget for 2012-13, which included a previously unexpected additional $852,271 from the state, and agreed that a local option levy should not be placed on the November ballot.

News of an additional disbursement of over $852K to the Hillsboro School District came just one day after the Budget Committee unanimously approved the Proposed Budget for 2012-13 in May. The money was a result of revised estimates to the 2011-12 State School Fund in three areas:

1. Additional allowances for the number of students above the 11% cap receiving special education services;
2. Additional allowances for students in Foster and Neglected Delinquent Care; and
3. An addition to the per-student (average daily membership—weighted, or ADMw) disbursement due to declining enrollment in the state.

The additional funds were used to restore ten elementary teaching positions, which brought the average staffing ratio at elementary schools down from 30.6:1 to 29.8:1. These additional funds, along with response to an early retirement incentive and contract concessions from licensed staff members, a reduction of classified hours across the District, five reduced days from the 2012-13 calendar, and other reductions, allowed the District to balance its budget without laying off any non-temporary licensed employees. In addition, all classified employees were offered positions. This is an amazing result given the many years of consecutive budget reductions the District has faced as well as the dire situation districts around us are facing, and is a testament to the hard work and collaboration of all staff and Board members.

Prior to the regular session, Board members heard a report from consultant Rebecca Ball of DHM Research Associates on the results of a public opinion poll conducted to assess potential support for a local option levy ask in November 2012. The firm placed over 10,000 calls in the span of three days in late May to complete 300 twelve-minute phone surveys of registered voters who closely match the demographics that would be expected to turn out in our area during a presidential election.

The poll showed that just 51% of people would vote for a local option levy if the election were held today, while 43% would vote against, and 5% were undecided.

Additional questions revealed that a majority of people who indicated they would vote against the levy would do so because of personal financial concerns—they are against property taxes in general, have too many taxes, or don’t feel they could afford it. They also revealed that a majority of all voters are generally supportive of public education and are concerned about the financial situation our District faces. Finally, they indicated that people would like more information about how the District manages its finances and how any additional money would be spent before making a final decision about whether or not to support a local option levy.

Given those results, the knowledge that November will have a very crowded ballot, and that there is typically a “sucking effect” of support for ballot measures that increase taxes as elections draw nearer, the Board agreed with staff’s recommendation not to move forward with a local option ask at this time. They also agreed that a committee of staff, Board, and other interested parties should convene to strategize on how to better communicate with our community on the issues surfaced by the survey. If you are interested in participating on the communications committee, please contact Communications Director Beth Graser via e-mail or by calling 503-844-1772.

Budget Committee Approves Proposed Budget on May 10, 2012

The Budget Committee, which consists of all members of the School Board and an equal number of appointed citizens, met for their official review of the 2012-13 Proposed Budget on Thursday, May 10, at 7:00 p.m. in the Administration Center Board Room.  After electing a Budget Committee Chair, Helen Noonan-Harnsberger, the Committee heard the Budget Message from Superintendent Mike Scott, and an explanation of the information contained in the Proposed Budget from Chief Financial Officer Adam Stewart.

Prior to the meeting, Adam and his team received several questions about the Proposed Budget and provided answers, but there was also time during the meeting for additional questions and discussion.

Most of the discussion centered around the inadequacy of funds available for K-12 education throughout the state, an acknowledgement that we are trying to select the best of bad choices, recognition that the forethought and conservatism of past Boards has allowed us to mitigate the effects of continually declining revenues, and a desire to start the budget planning process even earlier next year and engage in tough conversations about what we will be able to provide to students moving forward.

The Budget Committee approved the Proposed Budget unanimously.  The Proposed Budget will now advance to the Board for an adoption vote on Tuesday, June 12, 2012; that meeting will begin at 7:30 p.m. in the Administration Center Board Room and is open to the public.  To see the detailed list of cuts for 2012-13, please click here.

Licensed Staff Negotiations Could Help With Budget Gap for 2012-13

A tentative agreement was reached with our licensed bargaining unit on Thursday, April 5.  That agreement has various components, but the most pertinent ones for the purpose of discussing necessary budget reductions for 2012-13 are the provisions for five reduced calendar days (already reflected in the adopted 2012-13 calendar) and a delayed implementation of step increases on the salary schedule for licensed staff members who are eligible.  Those items, if passed by the licensed membership and approved by the Board on April 24, will result in the following savings:

Savings from 5 day reduction - Licensed staff:	$1,608,469
Savings from delayed step - Licensed staff:	1,398,000
Savings from 5 day reduction - Classified:	539,366
Savings from 5 day reduction - Administrative & Supervisory/Technical	___185,735
Total	$3,731,570

In addition, the budget for our online school, Hillsboro Online Academy, was revised to reflect a District contribution of just $125,000 instead of $200,000.  That $75,000 savings, added to the above, brings the total adjustment to our budget gap to $3,806,570, leaving a remaining gap of $4,343,430 for the Board and Budget Committee to consider.
 

Community Budget Meetings Being Held at Each School

As the spring has progressed, the District has gotten clearer about its budget deficit for the 2012-13 school year—$8.15 million.

In early February, all eyes were on the state’s March revenue forecast (released February 8) and the first even-year session of the Legislature for cues about the state of the budget.

The revenue forecast was down $35.1 million, which brought the total shortfall since the close of the regular legislative session in 2011 to $341.1 million. Since $460 million had been set aside by the state to absorb those shortfalls, the Legislature determined no further reductions to K-12 budgets were required for this school year; as long as the next five revenue forecasts of the biennium (ending June 30, 2013) don’t exceed that $460 million cushion, K-12 schools can be reasonably assured they will receive the money that was allocated to them for the biennium.

Based on that information, the District calculated the gap between anticipated revenues and expenditures for the 2012-13 school year to be $7.65 million. We also know we need to spend $200,000 on our new online school, Hillsboro Online Academy, and $300,000 for technology replacement in our schools, which brings the total shortfall in Hillsboro to $8.15 million.

District staff have been sharing information about the budget gap with our Board, Budget Committee, and principals, and our principals are now sharing information with their staff, parents and community members. We want to make sure all our patrons understand the state of the budget and have an opportunity to share their thoughts on system values and priorities as we endeavor to make reductions in the most responsible, sustainable way possible.

For more information and to see a list of school-based budget meetings, please review the presentations, FAQs, and other documents on this page.  Please also plan to attend our upcoming Superintendent Listening Session on Thursday, April 19, 6:15-8:30 p.m. at Poynter Middle School (1535 NE Grant Street, Hillsboro).