Hermiston board approves planning parameters and plans partial reserve transfers to offset PERS rate increases

Hermiston School District leaders presented budget planning parameters and reserve‑use recommendations at the March 10 board meeting and the board adopted the planning parameters unanimously.

Ms. Sol of the business office told the board the administration recommends keeping the budget target ending fund balance at 10 percent while the board policy remains at 8 percent. The district presented an enrollment assumption of flat ADMw and said updated state estimates showed higher per‑pupil funding in the coming biennium, partly to offset statewide Public Employees Retirement System (PERS) rate increases.

To blunt the near‑term PERS impact, staff recommended using half of the balances in two reserve accounts: roughly $1.45 million of a $2.89 million biannual reserve and half of the PERS reserve balance (about $2.57 million total in the PERS reserve). "We're recommending to allocate half of that balance, or about 1,450,000.00, to be transferred into the general fund to continue to support services and to help offset any shortfalls, particularly through the PERS rate increases," Ms. Sol said.

Board discussion emphasized fiscal restraint and preserving reserves for future years. Administrators said the transfers are intended to "stair step" the rate increases rather than deplete reserves entirely; staff estimated the district would still meet a roughly 10 percent ending fund balance under the presented revenue and expenditure assumptions.

The board also approved timelines for collective bargaining (licensed negotiations beginning April 22) and set the first budget committee meeting for May 5 at 6 p.m. in the district boardroom.

No line‑item program cuts were adopted at the meeting; administrators said they are reviewing expenditures and line items to identify efficiencies before next steps in the budget process.