[Busmgrs] Sent on behalf of ODE Communications: Sequestration Information

[WILTFONG Michael]

To: Superintendents, Principals, and Business Managers
Re: Sequestration

As you know, on March 1 automatic spending cuts known as the sequester went into effect.  As a result of sequestration, Oregon will lose around $23 million annually in federal education funds. These cuts represent a 5-7% reduction in federal funds for these programs (more precise estimates provided below).

We know that you have a number of questions about how the sequester, and other reductions in federal spending, will impact your schools and districts.  Below is a high level overview of the cuts Oregon will receive (by program type).  Additional information and frequently asked questions on both Title I and IDEA cuts will be provided by the end of this week. We want to make sure the information we provide is both accurate and useful in your planning process. Thank you for your patience as we work to finalize information on how these cuts will roll out.

What are the cuts?
A number of federal education programs will receive cuts under the sequester.  The main areas which will receive cuts are:

*         Funding for Oregon's high poverty schools
*         The state will lose approximately $10.2 million in Title I funding.

*         Funding for students receiving special education services under IDEA (Individuals with Disabilities Act)
*         The state will lose approximately $6.4 million in IDEA funds.  As you know, districts are still required to provide services to students with disabilities so these cuts would likely impact other areas of education funding.

*         Funding for Head Start and Early Head Start programs
*         The state will lose approximately $3.5 million in funding for Head Start and Early Head Start programs.  For additional information on federal Head Start cuts, please contact Nancy Hutchins at 206-615-3661 or nancy.hutchins at acf.hhs.gov<mailto:nancy.hutchins at acf.hhs.gov>.

*         Cuts to additional federal education programs (English Language Learner, Teacher Quality, etc.)
*         The state will lose approximately $3 million in funding related to other federal education programs.


When will the cuts happen?
Some sequester cuts will take effect immediately while others won't be implemented until the next funding cycle which begins in July, 2013.  At this time, it is our understanding that the education cuts will not occur until the funding allocations for the 2013-14 school year, but we are still waiting for final confirmation of this.

How will these cuts impact our students and schools?
Precisely describing the impact of these cuts statewide is tricky as most budgeting decisions are made locally.  The number of teaching positions cut will depend on decisions at the local level.  Head Start cuts will be made through federal Head Start, not through ODE. The following provides our best guess as to the possible statewide impact of these cuts on our students and schools.

*         Based on current reports out of the Congressional Budget Office, districts would receive approximately 6.6% less in federal Title I funding and approximately 4.7% less in federal IDEA funding as a result of the sequester.  These numbers are still subject to change, and we will share updates as available.
*         Around 220 teachers and educational aids would be at risk of losing their jobs as a result of the sequester.
*         The White House reports that hundreds of students would be removed from Federal Head Start and Early Head Start programs in our state due to the reductions to Head Start funding.
*         The Oregon Department of Education would see a reduction of federal funds used to administer federal programs and provide support and services to Oregon schools and districts.  This reduction is anticipated to be around $1 million.
*         In addition to the cuts required under sequestration, funding for some federal programs was already expected to see slight reductions in the allocations for the 2013-14 school year.  This will mean that districts will need to plan for larger cuts than those listed above.  The total reduction for Title I for example (including both the planned allocation reductions and the sequester) is anticipated to be around 10%.

We know that these cuts will be very painful to make.  Your schools and districts have already cut deep over the last several years and these cuts will have a very real impact on the programs you offer and the students you serve.

We will provide additional information later this week related to Title I and IDEA funds and will share additional details and information as it becomes available in the coming weeks and months.


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