Russell Allen, Business Director Randy Lary, Human Resources Dir.

Staff costs now comprise 89.0% of all GF expenditures (up from a 88.5% in 09/10 and a traditional 85%).

State General Fund revenue is heavily dependent on employment. Source: Oregon Office of Economic Analysis Pre-Recession Employment Level Not Until Late 2014.

The District continues to drop in enrollment.

7/1/11 rate increase added approximately $3 million in costs. 7/1/13 projected rate increase will add an additional $1.1 million.

funding was slightly higher. Source: Legislative Revenue Office funding was well below what is necessary to maintain existing programs funding will still be well below what is necessary to maintain existing programs.

General Fund Revenues Are Expected to Increase – Not Estimated To Be Sufficient – Need >$8 million Now to Restore 08/09 Service Levels Costs Will Again Go Up – Another PERS Rate Increase (min. 3 % points) – Textbook Adoption (assumed in model) Assumed Increase In Labor Costs – Assumed 3% Annual Increase in Employee Costs – Assumed 5% Annual Increase in Insurance Costs

The Economy Is Improving – However, Oregon Needs To See Significant Job Growth District Continues To Face Uncertain Future – Anticipated Expenditures Outpace Revenue District Must: – Manage Costs – Maintain A Quality Program (including quality staff) – Call On The Legislature For Adequate Funding – Attract & Retain More Students! – Collaborative Relationship

Russell Allen, Business Director Randy Lary, Human Resources Dir.