Siuslaw SD business manager warns of roughly $4.2 million shortfall; board set multi-meeting budget review

Cece Howe, Siuslaw School District business manager, told the combined budget committee and board that the district currently faces an approximate $4,200,000 shortfall for the coming year and will use a multi-year plan to reduce the deficit.

"By the end of the year, we will have a 4.2 approximate $4,200,000 shortfall," Howe said, describing the gap as a shortfall rather than a one-time discrepancy. She said the district will continue to prepare a detailed budget book and present fuller revenue and expenditure information at the April 22 and May 6 budget meetings prior to the board's June adoption deadline.

Howe reviewed the district's revenue mix and constraints: about 46% of revenue comes from property taxes, with the state school fund, SIA (Student Investment Account/Measure 98) grants and federal funds (Title I, IDEA) making up other major shares. Howe noted enrollment and weighted funding factors, and said the district's PERS retirement rate is running around 21.4 percent, a headwind on personnel costs.

She outlined the budget timeline: receive the budget message and materials April 22, a more detailed Q&A and potential adoption discussion on May 6, and final board adoption before the statutory deadline of June 30. Howe and the superintendent said staff will prepare options to step down spending over several years and provide details in the next budget packet.

The presentation made clear the district will balance legal requirements (ORS 294) with operational choices such as program reductions, consolidations or use of short-term borrowing if needed; specific program-level cuts were not adopted at the meeting and will be subject to future board review and public comment.