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<div>DA: March 4, 2011</div>
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<div>TO: District Business Managers</div>
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<div>FR: Michael Wiltfong - Office of School Finance</div>
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<div>RE: 2011-12 State School Fund Update</div>
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<div>Good afternoon everyone, </div>
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<div style="margin-top: 5pt; margin-bottom: 5pt; ">In keeping with ORS 327.061(2) and that the Department of Education shall provide State School Fund (SSF) estimates no later than the first Monday in March, I am sending notice we have posted the 2011-12 SSF
estimates based on the Governor’s Recommended Budget of $5,557,623,124. </div>
<div style="margin-top: 5pt; margin-bottom: 5pt; ">Currently, the Governor’s proposed budget would split the funding with 52% allocated in the first year and the remaining 48% allocated in the second year. Since this announcement, there has been considerable
discussion and feedback from stakeholders from around the state identifying the unintended consequences of the 52/48 split, especially with regard to the State’s special education maintenance-of-effort requirements from one year to the next. The discussion
around the split is ongoing and likely will change in the future. </div>
<div style="margin-top: 5pt; margin-bottom: 5pt; ">With that said, I’ve been asked by many of you to run two scenarios - one at the 52/48 split and one at the 50/50 split - since many of you have stated that, even if the 52/48 split is adopted, districts will
budget as if the split were 50/50 or 49/51. In providing two scenarios, the Department is NOT recommending a specific split but rather is providing information to assist you with your budget preparations. Again, this is based on the number of requests for this
information from the field.</div>
<div style="margin-top: 5pt; margin-bottom: 5pt; ">At this time, I would also add these<font face="Times New Roman, serif"><u> </u></font><u>estimates are subject to change</u>. This preliminary release is also intended to give everyone an opportunity to review
your data to ensure your estimates submitted in December are still accurate.</div>
<div style="margin-top: 5pt; margin-bottom: 5pt; ">Over the next several months leading up to the first payments in July, we will be posting regular updates, typically once a month. As has been the practice in the past, if there is a substantial change in funding
or data, revised estimates will be released shortly thereafter. </div>
<div style="margin-top: 5pt; margin-bottom: 5pt; ">If you should have any questions or concerns, please contact me at the e-mail address below. And thank you for all of your hard work out there! I have a feeling you haven’t been hearing that enough lately.
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<div><font face="Arial, sans-serif" size="2">Michael Wiltfong<font face="Calibri, sans-serif" size="2"> </font></font></div>
<div><font face="Arial, sans-serif" size="2">State School Fund Coordinator<br>
School Finance Unit, Director<font face="Calibri, sans-serif" size="2"> <br>
</font>Oregon Department of Education<br>
<font size="1">michael.wiltfong@state.or.us</font><font face="Calibri, sans-serif" size="2"> </font></font></div>
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