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<div>DA: February 10, 2012</div>
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<div>TO: District Business Managers</div>
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<div>FR: Michael Elliott</div>
<div> Department of Education</div>
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<div>RE: State Lands Audit News Story</div>
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<div>Good Morning, </div>
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<div>As some of you may have heard, the Secretary of State audited the Department of State Lands. The findings from the audit concluded State Lands spent money from the principal of the Common School Fund, instead of only spending the interest. This has resulted
in an approximately $75 million shortage in the principal of the Common School Fund. State Lands stated they will pay back this shortfall from other reserves available to them.</div>
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<div>Some of you have asked whether this will reduce your Common School Fund payments for this year and 2012-13. There should be no reduction to any Common School Fund payments to the school districts. That means that districts will not be asked to reduce their
actual Common School Fund payments for 2011-2012, nor should districts reduce their budgeted Common School Fund income for 2012-2013.</div>
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<div>ODE assists State Lands and the counties by providing the conduit for transferring the funds from State Lands to the school districts. ODE plans to continue to work with State Lands to provide Common School Funds to the districts. This partnership increases
efficiencies and maximizes the amount of revenue available to school districts across the state. </div>
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<div>Please let me know if you have any additional questions.</div>
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<div>Sincerely,</div>
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<div>Michael</div>
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<div>Michael Elliott, State School Fund Coordinator</div>
<div>Oregon Department of Education</div>
<div>503-947-5627</div>
<div>Michael.S.Elliott@ode.state.or.us</div>
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