District Begins Budget Process for 2018-19
Newberg Public Schools is looking to increase district financial stability for the future. Given the complexity and volatility within state school funding, the district is recommending to the Budget Committee that the upcoming budget contain a reserve of $1.3 million general fund dollars, or 2.5% ending fund balance for the 2018-19 school year. This first step will aid the district in a long-range goal of building and maintaining an ending fund balance in the 5-7% range.
“Having a strong ending fund balance keeps funding ripples from turning into waves,” explained Director of Finance, Ilean Clute. “Our Board is working on an ending fund balance policy that will guide the district in determining how much money will be held in reserves. It really is best practice.”
At the beginning of this school year, the district unexpectedly saw a sharp decrease in enrollment. This presented a challenged to administrators to cut $1.5 million just weeks into the school year. Unanticipated expenditures, like a drop in enrollment, can sometimes be offset with dollars from the ending fund balance. These reserve funds are not the only solution to volatility in state funding, but they can provide short-term cash flow protection and funds to absorb costs from emergencies.
The district also expects increases in salaries, benefits, utilities, and transportation costs to outpace expected revenue by $3 million. As the district starts working on its budget for the 2018-19 school year, it is looking to propose a reduction in expenditures of $4.3 million.
Newberg Public Schools has a long-standing history of keeping reductions out of the classroom. The district plans to solicit feedback from all stakeholders on spending priorities to ensure funding is aligned with goals and core values.
“We want everyone to have a voice in this process. We’ll work together to make certain our budget is a reflection of our district’s priorities,” said Superintendent Dr. Kym LeBlanc-Esparza. “We plan to actively engage with staff and our community to help prioritize spending.”
The district will evaluate initiatives and programs as a part of the budget process. Administrators will also engage the district’s associations throughout the process to work together to find cost savings.
“While we face some financial challenges in the months ahead, our commitment to our students hasn’t changed. We must all work together to ensure their success as we build long-term financial stability for our district,” said Dr. LeBlanc-Esparza.
The Board of Directors approved the budget calendar at its February 6 meeting. The Budget Committee’s first meeting is March 20. There is one vacant position on the Budget Committee, representing Zone 7. If you’re interested in the position, please contact Gregg Koskela at 503-554-5041.
The Board is scheduled to vote on a final budget on June 12, 2018.
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