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An unexpected shortfall in state school support has districts around the state,
including Sisters, scrambling to cover this year's budget and start next year
with at least a little cash.
"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.
