[Busmgrs] A message from Michael Elliott: State School Fund Estimates

[ELLIOTT Michael S.]

DA:                 July 8, 2011

TO:                  District Business Managers

FR:                  Michael Elliott
                        Department of Education

RE:                  2011-12 State School Fund update


Good Afternoon,

I have posted the updates to the 2011-12 Estimate on ODE's website here: http://www.ode.state.or.us/services/ssf/2011_12-ssf-estimate-as-of-7_6_11-1159hrs--5.73b.pdf.  ESD estimates are available here: http://www.ode.state.or.us/services/ssf/esd-11_12-estimate-as-of-7_6_11-1330hrs.pdf.  Additionally, the School Year Subaccount spreadsheet has been revised here: http://www.ode.state.or.us/services/ssf/2011-12-school-year-subaccount-estimate-7_7_11.pdf.  These revised estimates update ESD funds due to the merger of Umatilla and Union Baker ESDs and also update School District funds by reducing the reserve $5 million.

SB 250 creates the Regional Education Services Account (RESA) and funds it with a portion of the State School Fund.  The actual amount is 0.25%, or approximately $10.6 million a year, as previously discussed.  The Office of Regional Education Services is only allowed to spend $500,000 of this account per biennium for expenses.  The rest of the account must go to the school districts using the State School Fund formula.

Currently, there is no mechanism for determining when the additional funds in the RESA will be distributed to the school districts.  As required by SB 250, until that mechanism is in place the funds must remain in the RESA. To minimize the negative impact on school districts, ODE is releasing $5 million from its reserve account and immediately placing that in the State School Fund for distribution per the SSF formula.

When the RESA funds are made available, ODE will first pay back the $5 million from its reserve.  After the reserve is restored, the rest of the RESA funds that are released will be sent to the school districts per SB 250.

Additional updates include the changes in ESD funding due to the merger of Umatilla/Morrow and Union/Baker ESDs into the InterMountain ESD.

These estimates will be the basis of the July Payment.

If you have any questions, please feel free to contact me.

Sincerely,


Michael Elliott
State School Fund Coordinator
503-947-5627
Michael.S.Elliott at state.or.us

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