<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Exchange Server">
<!-- converted from rtf -->
<style><!-- .EmailQuote { margin-left: 1pt; padding-left: 4pt; border-left: #800000 2px solid; } --></style>
</head>
<body>
<font face="Arial, sans-serif" size="3">
<div>DA: April 29, 2011</div>
<div> </div>
<div>TO: District Business Managers</div>
<div> </div>
<div>FR: Michael Elliott</div>
<div> State School Fund Coordinator</div>
<div> Department of Education</div>
<div> </div>
<div>RE: 2011-12 State School Fund update</div>
<div> </div>
<div> </div>
<div>Good Afternoon, </div>
<div> </div>
<div>I have posted the updates to the 2011-12 Estimate on ODE’s website here: <a href="http://www.ode.state.or.us/search/results/?id=168"><font color="#0000FF"><u>http://www.ode.state.or.us/search/results/?id=168</u></font></a> These include the latest information
we have available.</div>
<div> </div>
<div>In the first estimates, there were questions regarding the $100M School Year Subaccount and how it was accounted for in the State School Fund Estimate. This estimate should clarify and answer most of those questions. The School Year Subaccount funds
are grant-based funds and are not included in the individual district estimates. Instead those funds are apportioned in the School Year Subaccount estimate. That estimate has been updated as well and is located here: <a href="http://www.ode.state.or.us/search/page/?id=1363"><font color="#0000FF"><u>http://www.ode.state.or.us/search/page/?id=1363</u></font></a></div>
<div> </div>
<div>To further clarify this situation, the caption over each district’s individual estimate should now show that the $100M is School Year Subaccount funds is excluded and will be distributed through EGMS.</div>
<div> </div>
<div>Additional changes in this estimate include using the overall figure of $5.677B for the 11-13 biennium. This number is the $5.7B figure passed by the Legislature and the Governor without the increase in the Common School Fund. The additional money to
be distributed from the Common School Fund is accounted for on the local revenue side of each district’s individual estimate. Again, $100M of the $5.677B provided by the legislature is to be distributed through EGMS and will not be reflected in the individual
district estimates for 11-12. Thus, the total amount running through the State School Fund will be approximately $2.74B less additional reductions such as High Cost Disability Grant, Facility Grant, etc.</div>
<div> </div>
<div>Only $2.74B will be distributed through the State School Fund for the 11-12 school year. For comparison purposes, the Governor’s recommended budget had approximately $2.78B being distributed through the State School Fund. So even though the signed budget
increased the funds available to schools overall, the State School Fund is about $40M less than what was in the Governor’s recommended budget. Thus, State School Fund distributions will be less than estimated distributions under the Governor’s recommended
budget. The State School Fund distributions do not include the $100M School Year Subaccount funds distributed separately. </div>
<div> </div>
<div>Thank you for the questions. If you have any other questions, please let me know.</div>
<div> </div>
<div>Sincerely,</div>
<div> </div>
<div> </div>
<div>Michael Elliott</div>
<div>State School Fund Coordinator</div>
<div>503-947-5627</div>
<div>Michael.S.Elliott@state.or.us</div>
<div> </div>
<div> </div>
<div> </div>
</font>
</body>
</html>