1. Department of Education K-12 School Funding
Governor’s Budget
Department of Education
K-12 School Funding
Linda Ames
Department of Administrative Services
Budget and Management Division
March 25, 2003

2. 2003-05 Governor’s Budget State School Fund Budget Comparison
Technical SSF Budget:
no Federal Funds
no accrued resources

3. 2003-05 Governor’s Budget General Fund & Lottery Fund Expenditures ($11,404 million)

4. 2003-05 Governor’s Budget Department of Education General Fund and Lottery Funds
Grant-in-Aid is also funding that goes out to schools, ESD’s and other local providers, but for specific programs or targeted populations.

5. 2003-05 Governor’s Budget State School Fund Total State Resources: $5,051.4 Million

6. 2003-05 Governor’s Budget K-12 School Funding State and Local Resources: $7,319.4 Million
Federal Funds – total GIA is $718 million.

7. 2003-05 Governor’s Budget K-12 School Funding State and Local Resources: $7,319.4 Million

8. 2003-05 Governor’s Budget School Funding as Percent of State Resources
Measure 5 and 50
K-12 at 44% of state resources – up slightly from last two biennia:
Within a limited budget, Governor did give priority to K-12.
Note: “State Resources” include education lottery bonds, MUPL, Education Stability Fund,
as well as General Fund and Lottery Funds.

9. 2003-05 Governor’s Budget State School Fund by Fund Type
Use of one-time funds in was significant.
GF is substituted for all these in the budget.
Total funding for is up 3% from Sixth SS level (including accrual),
but GF is up 18%.
Includes $211 accrued resources as General Fund in through the Sixth Special Session.

10. 2003-05 Governor’s Budget State School Fund Reductions in 2001-03
$112 million – Eliminate School Improvement Fund.
School Year.
$20 million – School Year.
$95 million – As a result of Ballot Measure 28 failing.
$46 million – Implemented January 2003 by Administrative Rule.
$8 million – Estimated SSF portion of MUPL Shortfall.
Total Reductions of $282 million.
-5.4% of biennial state funding.
-10.6% of state funding for school year.
Note: Does not include a $17.7 million reduction that was offset with additional Common School Fund resources.

11. 2003-05 Governor’s Budget State School Fund Changes to 2001-03 Funding

12. 2003-05 Governor’s Budget State School Fund
Continues all reductions through the Fifth Special Session.
All cuts are in , so are doubled in
Reduction of about $500 million.
Eliminates all salary increases [Cost-of-living adjustments (COLAs), steps], increases in health benefits, and inflation on Services and Supplies.
Reduction of about $550 million.
Funds student growth and PERS increase.
Adds back $100 million.
Priority of restoring school days/programs.
Within limited resources, supports education as high priority.
Funds current local option equalization grants ($550,000).
Student Growth ADMw: 1.4% and 1.1%
ADMr: 0.7% and 0.6%
PERS increases from 12.73% to 16.71% - a 31% increase
Local option equalization grant program was established by HB 2300 during the 2001 leg session. Provides some state matching funds for school districts who pass local options levies and have lower property wealth.
Current districts receiving grants – Pendleton, Colton, Oakland
Beginning next year – add Seaside
Budget includes $470,000 for existing districts, and $80,000 for local options that may pass in May elections.

13. 2003-05 Governor’s Budget Budget Process for 2003-05
School Revenue Forecast Committee
Executive Order
Second biennium this process has been used.
Data-based process to estimate resources needed for current program level.
Provides forecast information to school districts for planning purposes.
Membership includes technical staff as well as education stakeholders.

14. 2003-05 Governor’s Budget Budget Process for 2003-05
School Revenue Forecast Committee
Develop forecasts:
Student Growth.
Property taxes and other local revenues.
Growth in Personal Service costs, including COLA’s, steps, turnover, increases in health benefits and PERS.
Major improvement this biennium:
Department of Education developed model for Personal Services costs.
Model incorporates actual teacher salary data, current benefit costs, and retirement data.
“Current program” costs with no cuts: $6.0 billion state funds.
“Current program” costs with cuts through the Fifth Special Session: $5.5 billion state funds.

15. 2003-05 Governor’s Budget Biennial General Operating Revenue (Dollars in Millions)
Components of $119.1 million increase:
$135 student growth
$150 PERS
- $110 turnover
- $ 55 base adjustment

16. 2003-05 Governor’s Budget State School Fund State Funding by Year
Note: Chart does not include School Improvement Fund of $108 million.