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

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

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

5. The District continues to drop in enrollment.

6. 7/1/11 rate increase added approximately $3 million in costs. 7/1/13 projected rate increase will add an additional $1.1 million.

7. 2011-13 funding was slightly higher. Source: Legislative Revenue Office 2011-13 funding was well below what is necessary to maintain existing programs. 2013-15 funding will still be well below what is necessary to maintain existing programs.

8. 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

10. 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

11. Russell Allen, Business Director Randy Lary, Human Resources Dir. budgetquestions@albany.k12.or.us