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Cascade SD 5 board hears warnings about rising PERS costs and possible state cuts
Summary
District leaders told the Cascade SD 5 board that PERS costs are up more than $440,000 year-over-year and that a 2.5% state funding cut could reduce district revenue by about $1.5 million; trustees discussed using a PERS reserve, program adjustments and personnel options to manage scenarios.
The Cascade SD 5 Board of Education heard detailed budget warnings from the district’s finance director and superintendent at its November meeting, including a near-term spike in PERS expenses and the prospect of state funding reductions that could force program or staffing changes.
Mr. Wong, the district’s finance director, told trustees that PERS costs “within two months has cost us more than $440,000 just compared to last year,” and said the district is tracking several cut scenarios — 1%, 2.5% and 5% — to understand the potential consequences. He estimated a 2.5% cut would equal roughly $1,500,000 for Cascade.
Those figures followed an enrollment update from the superintendent, who reported the district is up about 55 to 60 students compared with last year and detailed average class sizes across several buildings. Trustees pressed staff on what emergency options exist if state aid is reduced.
The board discussed the district’s PERS reserve fund as a buffer. Mr. Wong described the reserve as helping to “storm what’s going on right now,” and told the board that the district’s account balances are held in the state’s Local Government Investment Pool (LGIP) with the Oregon State Treasury. “If you do, I’m happy to give it to you,” he said when asked about bank or accounting documentation, adding that the information is public.
Board members and administrators outlined a range of internal actions they would consider in various scenarios: delaying or canceling nonessential purchases, pausing some curriculum or professional development spending, deferring replacement of positions when staff leave and, as a last resort, discussing personnel reductions or furlough days. The superintendent emphasized a process that starts with defining core classroom services and then looks outward at lower-priority expenditures.
Trustees said they want clearer figures tied to specific options. The superintendent and finance director said they will continue modeling outcomes and await the next state economic forecast and November 19 quarterly report, which staff said will inform whether cuts are likely to be requested of districts.
The board did not take any action beyond requesting continued analysis and documentation; several trustees asked staff to provide underlying accounting reports and the district confirmed the records are available through the LGIP and can be shared with board members.
