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Current Cash Flow Projections
Date:
April 15, 2003
To: Molalla River
Parents and Staff
From: The Board of Education
Re: Current Cash Flow
Projections
In January, the Molalla River School
Board met with the Molalla River Education
Association and the OSEA Classified Union and negotiated to reduce our school
year by 15 days.
This difficult
decision was based on the information that was provided by the Oregon Department
of Education as of January 30th. The Board had been directed to anticipate deep
revenue shortfalls based on the State and Local Revenue Projections, and
budgeted expenditures as of January 2003.
It is a strange
position the Board finds itself. According to current legislative budget
projections for the coming biennium, budget reductions will again be necessary.
The Board has
been instructed that currently the State's 2003-2005 education
budget will be front loaded,
meaning we will receive more money for the
2003-2004 budget and less for the 2004-2005
budget. We find ourselves unsure
where to proceed. The following projected revenue funds
could offset some of the
anticipated reductions for the next year or two. In addition, the
District's
current contingency is approximately 1.5% of our budget, while good business
practice recommends a contingency between 5% and 10%.
At the
Board's, April 10th regular meeting the Superintendent and Business
Manager reported
to the Board and public that there is a significant difference
in the estimated ending fund balance from February's cash flow projection report
in comparison to March. These amounts are approximates and are comprised of
higher revenue sources along with lower expenditures.
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$195,000 - Taxes and other local revenues were underestimated in the
original budget.
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$255,000 - Thanks to the efforts of Pat Jackson, our Supported Ed. Director
we
were granted the maximum allowed by the State for supplemental
special education funds, the amount we received was
significantly more than anticipated.
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$270,000
- In
January, the Board directed our Business Manager to participate
In a "PERS Bond Sale". In March, at the conclusion of the
sale,
the MRSD benefited with a net savings.
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$325,000 -
Modified spending freeze savings. Approximately $70,000 is
due to
reduced costs for utilities. Energy costs did not increase at
the rate the Board was originally advised to anticipate. $90,000 was
saved in supply costs as a direct result of administrators, teachers,
staff and students tightening their belts and making do. Other costs
savings included delaying an upgrade to our computer network,
limiting our maintenance and repairs and fewer dollars spent on
legal fees than anticipated.
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$165,000 - Transportation savings due to a modified
budget, fewer routes
used due to special education students transferring out of the
district, more efficient routes that were implemented during the year
cutting 0.5 hours per route per day and cut days from the calendar
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$58,000 - Blue Cross Health Insurance
Rebate
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The
Board has a Budget Worksession scheduled for Tuesday, May 6,7:00pm in the
Molalla
Elementary cafeteria. The Board and budget committee members are looking for
your input on
the proposed budget for next year.
If
you have any questions or suggestions please feel free to contact your Board
members, for
phone numbers please contact the District Office at 503-829-2359.
Thank
you - The Molalla River Board of Education
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