Newberg SD 29J finance update: auditors stalled by federal pause, district freezes hiring and holds budgets

District finance staff provided an audit and budget update to the Newberg School District 29J board on Oct. 28, saying external auditors are awaiting federal guidance on single‑audit changes following a federal shutdown and that the timing has delayed the closeout of last year’s financial reports.

Staff reported a beginning fund balance of $1,674,000 and said total salaries and benefits are currently trending about 6–6.5% higher than last year, driven in part by a $50 monthly insurance cap increase (roughly 3%) and contractual increases. The district noted an October ADM count about 60 students lower than projected; officials said that shortfall will affect next year’s state school fund calculations even though last year’s higher count currently protects this year’s revenue.

To respond to budget pressure, staff described an administrative pause on new positions and a freeze on long‑term positions, and a 10% hold on building budgets that will require justification before access. District staff said they will continue weekly coordination with auditors and with Oregon Department of Education contacts to avoid disruptions to state payments.

Board members discussed restarting a finance advisory committee to provide deeper, periodic briefings and to help produce reader‑friendly budget summaries and public education about school finance. Committee duties under discussion include review of monthly financials, audit materials, levies, capital plans, investment/debt strategy, and public education; the board discussed quarterly or at‑least‑four‑times‑annually meetings with community members and staff participating.