1. Budget Overview 2004-2005 PARKROSE SCHOOL DISTRICT MARY LARSON DIRECTOR OF BUSINESS SERVICES MICHAEL TAYLOR SUPERINTENDENT JANUARY 26, 2004

2. Enrollment Projections  Schools are funded largely by the State of Oregon based on student enrollment or weighted Average Daily Membership (ADMw)  That is the sum of resident students plus adjustments for special education, ELL and other factors

3. Enrollment Projections  It appears that our enrollment this year is flat compared to 2002-2003 –02-03 was 3576 (January 2003) –03-04 is 3578 (January 2004) –04-05 projected to be flat

4. Enrollment History

5. Enrollment History Five Years

6. Flat Enrollment Growth  Since funding is based on the number of students, flat or declining enrollment gives no growth for revenues  Declining enrollments result with less revenues  There is a one-year “hold harmless”

7. Review of 03-04 Budget  The Parkrose Adopted budget is based on $5.05 billion Governor's budget for 03-04  The Adopted budget included $3,457,500 from the Multnomah County Income Tax

8. Multnomah County I-tax  Multnomah County Personal Income Tax, passed by voters on May 20, 2003  Personal income tax of 1.25% imposed effective January 1, 2003 on residents of Multnomah County  $863 per student county wide

9. Multnomah County I-tax  I-tax will be reduced if State funding levels exceed $4.8 billion  County officials have reduced the original estimates of the amount to be received from the I-tax  Parkrose’s estimated revenue was reduced from $3.4 million to $2.6 million  $863 versus $618 per student county wide

10. Multnomah County I-tax Used For  Restore staffing in the schools – a total of 19.2 FTE  Classroom sizes average 26:1 elementary  Outdoor School reinstated  Added support staff for English Language Learners, technology and elective classes  Replaced outdated math textbooks

11. Multnomah County I-tax Used For  Textbook adoption cycle current  Technology replacement funded  Elementary Custodial positions reinstated  Building sustainability for three years and stretching I-tax to four years

12. State Funding Review  Legislature appropriated $5.2 billion for K- 12 schools for 2003-2005 with another $100 million possible if revenue targets are met  Parkrose’s budget is based on $5.05 billion for 03-04 (plus I-tax dollars)  I-tax will be reduced if state funding exceeds $4.8 billion

13. State Funding Review  Imposed a three-year tax increase package to fund the State budget.  A special election is scheduled for February 3, 2004 on whether to repeal the tax increase package

14. State Funding Review  Repeal of the State tax measures reduces SSF funding by $503 per ADMw or $2.2 million less for Parkrose  All of this funding reduction would occur in the 2004-2005 budget year

15. Potential Revenue Shortfall  Revenue Shortfall Causes –Ending fund balance decline –If State tax increase is repealed - $2.2 Million –County collections for I-tax

16. Outlook for 2004-2005  If the tax increase is repealed, we will likely face a revenue shortfall in the range of $1.0 million to $1.5 million –Assumes discretionary and “one-time” spending is cut from county tax funding –Assumes halt of PERS litigation reserves –The reductions of $1.0 million to $1.5 million would need to be made after the above cuts

17. General Fund Revenues 2004-05

18. Summary  If the State tax increase is upheld, Parkrose can continue with our plan for use of the county tax revenue  The District needs to carefully monitor enrollment trends and be prepared to deal with the implications of declining enrollments

19. Summary  The State tax election will be very important to Parkrose. A $1.0 million budget reduction cannot be absorbed by the county income tax and fund balance  Our challenge will be to maintain current service levels if the tax is repealed

20. Summary  I-tax can make up some of the shortfall but will not fund all the state loss  REMEMBER TO VOTE

21. 2004-05 Budget Process

22. Conclusion  Questions  Presentation at www.parkrose.k12.or.uswww.parkrose.k12.or.us  Contacts: –Mary_Larson@parkrose.k12.or.usMary_Larson@parkrose.k12.or.us –Michael_Taylor@parkrose.k12.or.us