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Rainier superintendent warns of deficit spending and payroll errors; district weighing in-house accounting hire
Summary
Superintendent Chad Holloway reported consecutive years of deficit spending, an enrollment decline that depresses state revenue, and recent payroll step errors affecting about 26 employees. The district is considering hiring an in-house business manager after finding interim ESD support insufficient.
Superintendent Chad Holloway told the Rainier School District board that persistent enrollment declines and recent payroll issues are creating immediate budget pressure and complicate long-range planning.
Holloway reviewed enrollment and finance metrics, saying the district has seen average daily membership (ADM) fall from about 920 in 2017-18 to roughly 800 currently, and that state funding in Oregon largely follows student counts. "In 17-18 we had 920 students; right now we have about 800 attending," Holloway said, explaining why per-student revenue reductions translate quickly into budget shortfalls.
Holloway reported multi-year deficit spending in the general fund (examples cited: about $579,464 in 2022-23 and approximately $1.4 million in 2023-24) and said the district has held off on some hires while awaiting updated state funding projections for the coming biennium. He also noted that ESSER pandemic funds are nearly expended and cannot be relied on for ongoing operations.
Complicating the current fiscal picture, an initial payroll run tied to recently ratified contract changes produced step-placement errors that overstepped roughly 26 employees. The superintendent said the ESD-provided interim business office manager has been stretched across multiple districts and that responsiveness has been a challenge. The district is evaluating options, including hiring a permanent, in-house business manager to improve local access and accuracy.
Holloway emphasized cautious planning while monitoring the upcoming state biennium budget process and advised the board that conservative budgeting and independent cost estimates will be important if the district moves forward with capital planning. "We need to put ourselves in a position to make a soft landing," he said, describing the goal of stabilizing the ending fund balance and avoiding layoffs.
Board members asked for continued reporting and recommended staff return with detailed projections once updated payroll and state funding figures are available. The superintendent said he will also look for grant opportunities but cautioned that grants can carry administrative costs and are not a guaranteed fix.
