1. Economic Crisis State Revenue Shortfall Its Effect on State School Funding North Santiam School District May 2009 1

2. Board and Superintendent GOAL We are committed to doing what is best for kids; making any reductions in staffing in a way that is fair and equitable to ALL employees; and making an effort to keep as many people employed as possible while maintaining programs. 2

3. Revenue Reductions from State in 2008-09 SSF= ($455,000) SIF reduction= ($40,000) Property tax decrease= ($88,000) Less interest earnings= ($60,000) Drop in timber revenue= ($66,000) Drop in budgeted weighted enrollment funding from May 2008-September 2008= ($241,039) Additional drop in enrollment since October 2008 (41 students)= (205,765) Total Reductions= ($1,155,804) Reductions ($455,000) ($40,000) ($88,000) ($60,000) ($66,000) ($241,039) ($205,765) ($1,155,804) 3

4. Re-Adjustments to Budget 2008-09 Salary cut of four paid days, two of which were non- student contact days by ALL employees Froze operating expenses in February to only essential purchases to get through the year Froze hiring and professional development Limited Field Trips to only those essential to curriculum or those paid for with ASB or grant funds Released $600,000 NSSD Rainy Day Fund to carry over into 2009-2010 4

5. Not Adding to the Economic Crisis North Santiam School District is one of the largest employers in our community, and there is a real snowball effect when we are forced to lay off employees. A study by EcoNorthwest showed that for every $1 million cut from schools, 27 school employees lose their jobs – and their lost wages cause 10 other people in the community to lose their jobs… 5

6. Actions Taken to Prepare for 2009-2010 Pay and benefit freezeagreed to by ALL employees; Additional 5 day cut in pay for Administrative and Confidential employees Prepare conservative projection for enrollment based on loss of jobs in area Continue with hiring freeze except for essential positions Prepare for $5.6 billion in SSF for K-12 education (with potential for $6.0 billion adjustment to budget) 6

7. 5.6 Budget Sheet 5.6 7

8. $6.0 Billion SSF Allocation Why we cannot plan on it now State Revenue loss may continue $800 million in taxes must be passed in January Unemployment must go down Special Sessions mean changes to budget allocations 8

9. 6.0 Budget Sheet 6.0 9

10. The Budget An ever-changing work in progressa tool Can be affected during the year by Unknown future events (9/11; stock market) Circumstances (loss of boilers, roofs) Mother nature (weather related loss) Enrollment numbers (up and down) Economy (revenue from state, taxes, grants, interest, etc) 10