Maintaining the Newberg School District’s current level of service will require reducing the 2013-14 budget by $259,000.
Superintendent Kym LeBlanc-Esparza made the announcement at the Tuesday night school board meeting.

“While our reduction is not as large as many of our surrounding districts, every reduction has an impact,” said LeBlanc-Esparza. “We have worked to keep those impacts away from the classroom.”

Given the ever-changing school revenue picture, Newberg has prepared for up to $1 million in potential reductions. While state K-12 education revenue figures have yet to be determined, Newberg is basing its budget on the legislative co-chairs budget of $6.55 billion for education.

Newberg has relied on the ending fund balance savings to operate this year, resulting in a low 2% ($800,000-$900,000) ending fund balance that exposes the district to risk.

“We spent $1,300,000 spent from Ending Fund Balance to maintain operations this year,” said Nate Roedel, Director of Finance.
Roedel explains that this includes an unanticipated $500,000 revenue loss this year due to three-year revenue/expenditure recalculations by the Oregon Department of Education. Best practice recommended by auditors and Newberg School Board is a 5% ending fund balance of over $2 million.

Compounding the need for reductions are increasing operating expenses for next year. The district anticipates the following cost increases:

• $540,000 - Roll up costs
• $1,799,000 - Increased PERS expenses (this may change with pending legislation)
• $60,000 - Increased liability insurance costs
• $219,250  - Repayment of Licensed MOU
• $300,000  - General Fund must now support items covered by bond funds for the last two years

The Budget Committee gave the “go-ahead” to move forward on Level One reductions at a May 7 meeting. The Level One reductions have been identified as having least impact on students. Each item was identified and evaluated for its impact on students, staff and community by school leadership and Budget Committee members.

Level One reductions include withholding purchases of custodial equipment and refinishing elementary and middle school gym floors for one year. Staff hours will be reduced through restructuring in ELL, alternative education and student services. Edline, the popular website that helps parents monitor their students academic progress and attendance, will be eliminated and replaced by the new Synergy student information system.

Additional reductions have been identified if deeper cuts are required.

“We are all committed to a world-class educational experience that prepares our students for the 21st century,” said Superintendent LeBlanc-Esparza. “While our budget challenges are tough, I absolutely believe we can give the students of the Newberg School District that quality educational experience that they and our community deserve.”