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Slide 2 Russell Allen, Business Director Randy Lary, Human Resources Dir. Slide 3 Staff costs now comprise 89.0% of all GF expenditures (up from a 88.5% in 09/10 and a traditional 85%). Slide 4 State General Fund revenue is heavily dependent on employment. Source: Oregon Office of Economic Analysis Pre-Recession Employment Level Not Until Late 2014. Slide 5 The District continues to drop in enrollment. Slide 6 7/1/11 rate increase added approximately $3 million in costs. 7/1/13 projected rate increase will add an additional $1.1 million. Slide 7 2011-13 funding was slightly higher. Source: Legislative Revenue Office 2011-13 funding was well below what is necessary to maintain existing programs. 2013-15 funding will still be well below what is necessary to maintain existing programs. Slide 8 General Fund Revenues Are Expected to Increase Not Estimated To Be Sufficient Need >$8 million Now to Restore 08/09 Service Levels Costs Will Again Go Up Another PERS Rate Increase (min. 3 % points) Textbook Adoption (assumed in model) Assumed Increase In Labor Costs Assumed 3% Annual Increase in Employee Costs Assumed 5% Annual Increase in Insurance Costs Slide 9 Slide 10 The Economy Is Improving However, Oregon Needs To See Significant Job Growth District Continues To Face Uncertain Future Anticipated Expenditures Outpace Revenue District Must: Manage Costs Maintain A Quality Program (including quality staff) Call On The Legislature For Adequate Funding Attract & Retain More Students! Collaborative Relationship Slide 11 Russell Allen, Business Director Randy Lary, Human Resources Dir. budgetquestions@albany.k12.or.us