Superintendent Paula Radich presented the district Budget Committee with a tight general fund budget for the coming school year that aims to fill a gap between sustaining current program levels and Newberg’s share of state revenue for education.

The proposed budget uses almost all of its Ending Fund Balance to offset anticipated losses in revenue for 2012-13. Radich proposes examining holding back spending on discretionary accounts, depositing energy savings rebates in the general fund and possibly increasing class size by .5 students in grades 4-12.

Newberg’s proposed general fund budget is $41,272,480. Revenue comes primarily from property taxes receipts (31%) and state sources (59%). This is the first time in four years the district has no revenue from federal sources. Most of the district’s expenditures are for salaries for instruction and support services.

Radich explained that the new Achievement Compacts mandated by the state legislature and the Oregon Education Investment Board would frame the 2012-13 budget.

School districts are expected to establish targets for several measures of student achievement in order for students to meet the state’s 40-40-20 goals for high school and college completion. The goal declares that by 2025, 40 percent of adults will have earned a bachelor’s degree or higher, 40 percent of adults will have earned an associates degree or post-secondary credential and 20 percent of adults will have earned a high school diploma.

The school district’s budget should reflect the resources needed to achieve the Achievement Compact goals. The Newberg Budget Committee will meet again on May 15th. The School Board will adopt the budget on May 22nd after a public budget hearing during the regular board meeting.