The Newberg-Dundee School District Board of Directors adopted the 2024-25 budget following a public hearing on June 24, 2024.
Oregon Budget Law requires the Board of Directors to adopt the 2024-2025 academic year budget by June 30, 2024. However, the School Board may amend the budget by implementing cost-savings and expenditure-reduction adjustments.
At the School Board meeting, Interim Director of Finance Gayellyn Jacobson, provided a financial update that indicates the District ended the 2023-24 fiscal year with a -$1.7 million fund balance.
Jacobson reports some reasons for the negative fund balance include overspending on outside contractors (generally listed as “Professional Services”), substitutes, repairs, legal services, and utilities. An incorrect budget entry created a shortfall in the Transportation Budget.
Jacobson noted the District anticipates a positive adjustment of $2 million in the State School Fund, however, those funds will not be received until May of 2025.
Interim Superintendent Dr. Paula Radich shared two possible scenarios that may improve the district’s budget outlook for the next biennium (2025-2027).
As several school districts throughout Oregon are experiencing funding shortfalls, the state may provide an increased allocation to school districts in the 2025-27 biennium.
In addition, Dr. Radich noted that the School District may want to consider a Local Option Levy in May of 2025. However, Radich expressed concern about the potential impact of a Local Option Levy on the community and cautioned the Board to proceed carefully.
Despite indicators of a more robust State School Fund budget and the potential for a Local Option Levy, any adjustment in funding would not impact the 2024-2025 school year. There are steps we must take now to balance the 2024-25 budget:
- Criteria for the budget reductions were created by building administrators, Association representatives, School Board Representatives, and District Office leaders. Please note there is no plan at this time to eliminate programs. Dr. Radich will be reviewing staffing ratios, which will impact the number of class sections and the size of classes.
- The District will hold two listening sessions to elicit feedback regarding proposed expenditure reductions and savings ideas and answer questions. Sessions are scheduled for the West Commons at Newberg High School from 6:00 to 8:00 p.m. on Thursday, June 27, and from 6:00 to 8:00 p.m. on Monday, July 1
In addition to these steps, Dr. Radich stated she will request the Board of Directors approve a Request for Proposals (RFP) for a forensic audit at their Board meeting on July 9, 2024.