Q & A
Budget Questions
Feedback from school employees, families, and community
HOW DID WE GET HERE?
How on earth could this much money go missing and no one knew anything until a few weeks ago?
Interim Superintendent Dr. Paula 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.
How much overspending happened specially and what was it spent on? How much was overspent and on what?
The School District’s Interim Finance Director, Gayellyn Jacobson, offered an update on our current financial position that included that the budget was overspent in purchased services:
Inst/Prof/Tech Services (outside contractors) $1,009,345
Instr Prg Imp Srv $145,080
Repair & Maintenance Services $344,048
Electricity $152,784
**Reimbursement Student Transportation $684,692
Legal Services $179,363
General Professional Services (outside contractors) $582,695
Classified Substitutes $75,739
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Total Over Budget $3,173,746
**Please note that there was an error in the Transportation Budget that incorrectly listed the amount for which the bus company was contracted as almost $1 million less than it was, creating what appeared to be an over-expenditure but was a data entry error. The bus company is working with the School District to address the issue.
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- Steep Enrollment Decline
- Significant Staffing Increases
- Over Expenditures
- Budgeting Errors
School District leaders initiated a spending freeze in April. School District leaders were reportedly unaware of the extent of the budget deficit.
ACCOUNTABILITY
Does the School District share a spreadsheet every month that shows the financial reports? I know they were asking, but was there ever any paperwork showing that?
At each regular School Board session this school year, approximately once a month, the Finance Director shared revenue and expenditure reports with the Board of Directors.
The Finance Director created monthly reports that indicated the percentage of revenue remaining in each fund. In the School Board’s regular session in the list of meeting documents and links on our website, each board packet includes the financial information was presented at the time. You may view the March 12, 2024 report in this packet on Page 30.
The School District must follow public notice procedures for meetings, which entails posting information in designated areas within a legally required minimum time period. There is also an implied rule of accountability for public officials to create outreach efforts and to respond to the public’s requests for information in a reasonably timely manner.
What are the policies and procedures that will be put in place to guarantee our district has and is required to use best accounting practices and checks and balances for monies and budgets in the future? Whose responsibility will it be to ensure this is enforced on a daily basis?”
School Board Policy DBE, The superintendent has the overall responsibility for budget preparation and will develop such procedures necessary to ensure that the proposed district budget reflects all areas of the district’s operation. The Superintendent oversees all Departments in the School District, including Finance.
School Board Policy DBEA, by law, the Budget Committee is charged with making recommendations concerning financial priorities. Educational policy decisions are the responsibility of the School Board.
Who is supposed to make sure the Budget is being followed?
School Board Policy DB, states that the Director of Business services [i.e. the Director Finance] will be designated as Budget Officer and will prepare the budget document under the direction of the superintendent.
After determining that significant budget errors were made in the 2024-2025 proposed budget, Oregon Association of School Business Officials Executive Director Jackie Olsen and the School District’s Interim Finance Director Gayellyn Jacobson developed the School District’s revised proposed 2024-25 fiscal year budget, adopted by the School Board on June 24, 2024.
In addition, at the June 24, 2024 meeting of the Board of Directors, Interim Superintendent Dr. Paula Radich announced to the Board of Directors that she will ask their approval to approve a Request for Proposals for a forensic audit of the district’s finances. It is anticipated that the Board of Directors will take action to approve the Request for Proposals for a forensic audit at their July 9, 2024 Board meeting.
SCHOOL FINANCE: HOW ARE SCHOOLS FUNDED?
Can a representative from the Oregon Department of Education be available at a school board budget meeting to answer questions?
Yes, however, it is suggested that you begin the conversation with Dr. Radich, Interim Superintendent and Gayellyn Jacobson, Interim Director of Finance. Should you still have questions, we can connect you with a Department of Education representative. The ODE general email address is [email protected]. The Board would need to determine whether a visit from the Oregon Department of Education is necessary. Dr. Radich served as Assistant Superintendent for Teaching and Learning at the Oregon Department of Education and is familiar with their policies and practices.
A lot of talk around town has been confusing where money comes from. I think it would be helpful to explain what is federal, local, bond, etc. Being specific on what is short and where it's funded will help the public’s understanding of the issue and what can be done. I know bond money can only be used for specific things.
2023-24 Projected Revenue and Expenditures
Revenue to date: $59,470,705
Revenue Outstanding
Education Service District Apportionment: $528,131
Common School Fund: $296,459
County School Fund: $16,000
Total Projected Revenue: $60,311,295
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Expenditures to date: $60,643,978
Encumbrances: $1,378,794
Total Project Expenditures: $62,022,772
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Projected Ending Fund Balance: -$1,711,477
About 80% of the School District’s expenditures go to personnel. The remainder is applied to facilities, programs, and services.
STAFFING
What incentives could be put into place in the future for savings through early retirement of long-term staff?
That is a point of discussion that Interim Superintendent Dr. Paula Radich is considering offering an Early Retirement Incentive. However, a survey of similar districts offering Early Retirement shows that not many staff participate.
The School District will negotiate the number of furlough days in 2024-25 with the employee associations. Dr. Radich will do her best to balance furlough days and staff reduction, however, the associations must agree to the number of days.
Can some teachers voluntarily work a reduced-hour contractual day to save salary expense? If you wish to have your hours reduced, please contact Human Resources, your association representative, and your supervisor.
When will employees know if they are not only retaining a position in the district but also retaining their position in a building?
Hopefully, no later than July 11-12, 2024 dependent on how quickly the Reduction in Force and transfer process can take place. Interim Superintendent Dr. Paula Radich has released a Draft Reduction in Force Proposal. It is available on our Budget web pages. More details will be released on the reduction in force as they become available.
Why did we have so many new employees at the DO and why do they have such extravagant salaries? Why has there been such an increase in DO staffing and class sizes as low as 14? Why do we have an assistant superintendent for a district so small?
The current leadership is on leave. Interim Superintendent Dr. Radich previously served the Newberg School District of nearly 5,200 students without an assistant. The Assistant Superintendent position was cut in 2018 and revived in 2023. The most recent position combined Human Resources and employee oversight duties.
The personal "pain" of RIFs, furlough, and COLA-freezes is felt much more deeply at the lower employment levels. What recourse does NSD have to cut the current superintendent pay/financial benefit to what it was under the previous superintendent?
The School Board approves the Superintendent’s contract and negotiates the terms. Interim Superintendent, Dr. Paula Radich, has requested no compensation for her work.
When will teachers know if they are RIFed? And then what building they will be in?
We should know the number and names of teachers being Reduced in Force by Thursday, July 11th at the latest. We will release reduction in force notices this summer. Our Human Resources staff will schedule a time for employees Reduced in Force, to meet with providers regarding employment and supports during this time. Once this event is scheduled, we will contact those who may wish to participate.
If there’s a big number of staff being cut, how does that ultimately benefit the students in our community? How will budget decisions impact students, staff, and the broader community?
We acknowledge that staff reductions will be difficult for our community, especially our staff and students. We are striving to reduce staff with the least amount of impact on our students. We will prioritize maintaining programs and services, although classroom sizes may grow.
How is my ranking considered when making cuts?
The key criteria under consideration for the reduction in force process are:
- Maintain core academic programs
- Legal compliance
- Contract compliance
- Equitable
- Preserve school safety for students and staff
- Good for students and staff
Collective bargaining agreements are available on our website. Please see Articles 9 and 10 of the Oregon School Employees Union agreement or Article 28 of the Newberg Employees Association. Both detail how seniority is considered.
Will Reading Intervention be affected?
The School District’s Draft Reduction in Force Proposal process focuses on increasing class sizes with a minimal impact on programs and students. We will do all we can to support and promote the education and growth of our students, however, given the significance of our budget deficit, nearly every district position will be impacted.
The School District plans to implement a Diversity, Equity, and Inclusion Advisory Committee within the coming year to initiate actions to improve climate and culture, an effort that will include inclusivity.
Is being a "full inclusion" district costing us an exorbitant amount of extra money? How much more than when we had the SEAL and ILC programs?
Our School District adheres to Individuals with Disabilities Education Act (IDEA) Policy: "Improving educational results for children with disabilities is an essential element of our national policy of ensuring equality of opportunity, full participation, independent living, and economic self-sufficiency for individuals with disabilities." Findings of Congress, Public Law 108-446. Section 601(c)(1).
We believe that you are referring to the ILC abbreviation that stands for Independent Learning Classroom and is a classroom where children with special needs are placed with children that have similar educational needs. We also believe that you may be referring to the Social and Emotional Aspects of Learning (SEAL), although there are a few education-related acronyms with the same initials.
ILC and SEAL are considered good practices for supporting our students and also align with our federal law. We’re not sure it costs extra money to teach children with equality, but if it does we are going to do this in keeping with the law and our own commitment to serve all children.
FACILITIES
Why not close Ewing Young Elementary School or consolidate it with Crater and Joan Austin Elementary Schools?
It is possible that one or more schools may need to be closed or consolidated. Interim Superintendent Dr. Paula Radich is not recommending school closure for 2024-=2025 due to the short timeframe. Dr. Radich will ask small enrollment schools to close off wings and or/upper floors to reduce costs until such time as a plan is developed for: boundary changes, school closures, consolidations etc.
Is the old Dundee elementary school up for sale or will it be torn down and the property put up for sale?
Since it has been replaced with a new, bond-funded building, the old Dundee Elementary School is for sale. Details on the sale will be available soon.
We have 2 middle schools and two high schoolsl. We have 6 elementary schools that funnel into those schools. Does Newberg really need 6 elementary schools? Do the school boundaries need to be changed?
The School District is reviewing all savings and expenditure-reduction ideas. Interim Superintendent Dr. Paula Radich is not in favor of closing a whole school but would like the District to consider closing the upper floors of some buildings to reduce costs.
PLANNING FOR 2024 AND BEYOND
What is the school district going to do in order to gain back trust?
The budget feedback process is a part of our effort to connect with the community and improve our transparency and outreach efforts. We hope to gain the community’s trust once again and will do all we can to renew that confidence in our School District.
Yes. However, bond funds are targeted at replacing and repairing facilities and require voter approval. A Local Option Levy that supports the daily operation of schools may be a possibility should the Board decide to seek a Local Option Levy in May 2025.
I wonder if the district administration would benefit from more opportunities for the staff to look closely at the budget and give input in the years to come. More eyes on the realities and more buy-in! We agree. We plan to improve our public outreach and staff engagement, especially when we are managing the annual creation of our proposed budget in the spring. The Board commissioned a Finance Advisory Committee at their July 9th session. This committee is charged with closely monitoring the district’s budget and will report to the Board of Directors.
What measures are we taking to ensure financial sustainability in the long term?
This summer, we are launching a process to brainstorm ideas to improve savings efforts and reduce expenditures. Reviewing this feedback is a part of that effort. In addition, District leaders are developing systems for monitoring staffing ratios and for providing appropriate budget oversight and reporting.
What controls are being put into place to ensure adequate oversight of budgeting and spending going forward so we are not in this position again? What is the long-term plan to help get our finances back in order? What policies/procedures will be put into place to prevent this in the future? How do we ensure this crisis doesn’t happen again?
Interim Superintendent Dr. Paula 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. Understanding where and how the budget errors occurred will help us build a long-term plan centered around fiscal accountability, with guidelines and checks and balances for staff to follow in the future. Our plan will include an examination of School District, policies, procedures, and practices. We will share the details when we have had more time to develop this plan.
The Board will commission a Finance Advisory Committee at their July 9th session. Members of this committee will be comprised of two Board members, two Budget Committee members and three community members. Their task is to provide frequent monitoring of the district’s finances and reports their findings to the Board of Directors.
OTHER
How can the community help this summer? Can we do a "fill the boot" type activity like the fire department does?
We encourage you to share your input through our [email protected] email address. We also encourage you to volunteer for and donate to your local school. Contact your school’s parent-teacher organization to find out how you can help.