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Committee reviews state school fund estimate updates and potential appropriation adjustments
Summary
The committee discussed updates to the State School Fund estimates, property tax true-ups, common school fund receipts and a likely supplemental appropriation request in April to rebalance appropriation levels; finance staff said updated figures were submitted to the state in December and the May adjustment is expected to be final.
Finance Director Nate Bridal and committee members reviewed updated State School Fund (SSF) estimates and related appropriation impacts for Newberg School District 29J.
Nate said updates submitted to the Oregon Department of Education (ODE) in December were reflected in the district's January financial report; he reported that property tax collections and average daily membership (ADM) figures had been trued up and that the district incorporated increases in property taxes received. He said ADM is down from prior counts and will remain the "hold harmless" figure until enrollment changes (for example, more kindergarteners or move-ins) modify the trend. Nate said the district is preparing submissions for high-cost disability and excess-cost reimbursements that are due on the 15th of the month and that those items are included in upcoming adjustments.
The group reviewed SSF estimate lines on their worksheets: an initial March 2024 estimate was about $23.5 million, a June 2024 estimate fell to about $20.64 million, and after incoming tax collections the district estimated about $21.4 million in property-tax-related revenue (members noted a $21.45 million figure appeared on another internal document). Committee members also noted that some prior-year county school fund collections had been placed in the wrong line on one worksheet; staff said they will ask the state contact (Jared) to correct the placement so totals roll up correctly.
Members discussed the district's projection that appropriation levels are currently out of alignment with projected expenditures and encumbrances. The finance packet shows budgeted appropriations at about $12.7 million for a fund (page reference in packet), with year-to-date spending and encumbrances projecting roughly $15.8 million in that same area, leaving a projected overage near $3.0 million. Staff explained some of that appearance is due to completed bond projects with remaining encumbrances that need to be disencumbered and that capital-projects revenue entries also affect the presentation; staff said the actual fund-balance (cash) is tracked separately from budget appropriation authority.
Committee members were advised that under Oregon law appropriation levels must be adjusted before the appropriation is exceeded; a committee member (identified in discussion as Jared) said districts commonly make appropriation changes in April or May and recommended year-end timing considerations because June historically has large payroll/expense activity. Nate said he expects to bring a supplemental appropriation request to the board in April to increase budget authority and reallocate appropriation levels based on the most up-to-date projections; the May SSF adjustment is expected to be the final published number for the year.
Ending: Committee members described the discussion as part education and part audit- and budget-preparation work; they asked for updated financial reports to be provided with future board materials so committee members and the public can compare estimates and the district's consolidated budget worksheets.
