[Busmgrs] July 2015 Estimates

[ELLIOTT Michael S]

Dear Business Managers,

As many of you know, the legislature has adjourned for the session. Since the dust has finally settled, I am able to provide new estimates based on the funding level and the split within the biennium.. I also will be able to include as many of the new carve-outs created by this session as possible.

Links:
Districts: http://www.ode.state.or.us/services/ssf/2015-16-ssf-estimate-as-of-7-8-15-1200-hrs.pdf
ADMw Breakouts: http://www.ode.state.or.us/services/ssf/transparency-estimate-7-8-15-1200-hrs.pdf
ESDs: http://www.ode.state.or.us/services/ssf/esd-15-16-estimate-as-of-7-8-15.pdf

Highlights of Changes:
*       A total of $7.37 billion will be in the State School Fund. This includes the original $7.255 billion split 50/50 for 2015-16 and 2016-17. The additional funding from the May forecast and other sources will all be distributed in the second year. This will lead to an effective 49.2/50.8 split for the biennium. These funds include all funding from the legislature whether from corporate kicker or additional funding.
*       The ELL accountability program has been added as a carve-out. HB 3499, provides $12.5 million in SSF funds to the funding of this program. That is split evenly between the two years.
*       The state is subsidizing the free and reduced lunch program such that those students who qualify for reduced lunches will get free lunches. Total carve-out is $2,395,593.
*       HB 2150 passed. This reduced estimated extended ADMw for the state from 704,000 to 699,000. This bill also provides funds to districts to wind up their charter schools. Total estimated funds that will be distributed with SSF money but outside the formula will be $2.7 million for 2015-16 only. 2016-17 funds will depend on the number and size of charter school closures.
*       The Small High School Grant was renewed and so will continue to be a $2.5 million per year carve-out.
*       The High Cost Disability Grant was increased from $18 million a year to $35 million a year. This increases the carve-out but should double the percent payout for districts with qualifying high cost students.
*       As part of the final legislative budget package, the legislature is asking the State Land Board to increase the distributions from the Common School Fund. If the State Land Board approves the increased distribution, that will add approximately $27.5 million to local revenue. This increase has been included and is split evenly across the biennium.
*       SB 447 passed which provides a grant program for districts to get additional funds for capital construction. Of significance to the State School Fund, is that this bill reduces the current Facility Grant to $12.5 million for the biennium. After 2015-17 the Facility Grant will be reduced to $9 million a biennium.
*       The Network of Quality Teaching and Learning has an inflation factor built in such that if the State School Fund increases, so will the carve-out. For the 2015-17 biennium, the carve-out increased by approximately $1.4 million for school districts and ESDs for the biennium.
*       The minimum grant to ESDs was increased from $1 million to $1.165 million. This will not affect the total percentage that ESDs receive of the State School Fund, but it will affect how the money is distributed among the ESDs.

Next Steps
At this point it is too late to make any more changes in time for the July Payment. However, as many of you are aware, the Federal Forest Fee program was renewed for both 2014-15 and 2015-16. Several districts have reported receiving some of the funds already. If any district has received fund since the start of 2015-16, please let me know. We will need to update your Estimate of Membership and Revenue to reflect the additional local revenue so that your district does not have a significant impact when it comes time for reconciliation. Also you can make other changes at that time. Depending on the responses, I anticipate a rebalance of the State School Fund either August or September.
Please let me know if you have any questions.

Thank you and I hope to see everyone at summer conference in a couple of weeks.
Michael


Michael Elliott
State School Fund Coordinator | Office of Finance & Administration|School Finance & Pupil Transportation Unit| Oregon Department of Education
Office: 503.947.5627 | Fax: 503.378.5156 | *michael.s.elliott at state.or.us




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