Central SD 13J projects ADM declines; staff flag budget pressure from flat grants and indirect‑cost limits
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Summary
District staff reported a rolling two‑year ADM process and recent enrollment adjustments to 2,915 students; finance staff warned federal and state grants may be flat, indirect cost recovery is shrinking, and unemployment benefit changes could raise employer costs, all of which factor into next year's budget planning.
Central School District 13J staff outlined Average Daily Membership (ADM) mechanics and enrollment volatility, and finance staff described revenue and expense pressures that may affect next year’s budget.
ADM and enrollment: Staff explained Oregon’s rolling two‑year ADM process used to calculate state funding and said the district’s December 2024 projection was 3,050 students before adjustments. State reconciliation lowered statewide counts and the district adjusted estimates—March 2025 to 2,985 and then June 2025 to 2,915. In January 2026 the district again reported an ADM estimate of 2,915 and said it expects to monitor March and May submissions to finalize second‑period ADM and corresponding payments.
Budget and revenues: Finance staff reported property tax collections are near expected levels and noted some unanticipated reimbursements (for example, a state reimbursement tied to required district water lead testing). However, they flagged several budget risks: indirect cost recovery on grants is down because some state grants no longer allow full indirect rates (reducing general‑fund offsets); federal Title I/II/III grants may be flat in upcoming federal budgets and personnel costs (including PERS and payroll) continue to rise. Staff identified a mid‑year tracking level of 46% of budgeted expenses and said they are watching increases in unemployment claims costs tied to a 2025 legislative change that allows classified employees to claim unemployment during school breaks; that change cost the district roughly $142,000 from June–August and could approach $200,000 for the year.
Construction excise tax and capital projects: Staff presented the construction excise tax fund balance (table shows $54,646,060) and noted recent final billings for CHS stadium resurfacing and turf projects and replacement costs for a burned modular classroom. Staff cautioned that revenue depends on local building activity and has slowed with decreased construction.
Board reaction and next steps: Board members praised the conservative ADM approach and asked for further data; staff said they will continue to monitor ADM submissions, return with refined estimates, and incorporate grant/indirect recovery risks into next year’s budget development.
