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Financial director cautions against using reserves for Q‑Hut project amid state revenue dip
Summary
Jackie Olsen told the board the state revenue forecast is down about $500 million but said the Education Stability and Rainy Day Fund lower the near-term risk of cuts; she recommended the district avoid using ending fund balance to replace the Q‑Hut and consider loans or phased funding due to enrollment volatility and ORCA funding uncertainty.
Jackie Olsen, executive director of the Oregon Association of School Business Officials, briefed the Santiam Canyon School Board on the 2025 legislative session and the state revenue outlook, saying the state budget is down approximately $500 million but the Education Stability and Rainy Day Fund makes immediate cuts less likely.
When asked about using district funds to replace the Q‑Hut, Olsen said that while the district technically has fund balance capacity, she would not recommend tapping SSF/ending funds given uncertainties — particularly the potential swing in ORCA enrollment and resulting funding volatility. She recommended alternatives including taking a loan or staged funding and advised caution about relying on donations because fundraising timelines and construction-cost inflation introduce risk.
Olsen also noted the district’s seven‑year contract with ORCA limits negotiating pass-through percentages until the contract ends, and she stressed that ORCA’s enrollment-driven funding is an estimate until final enrollment days are certified.
