THE DALLES — Oregon’s state budget woes have impacted schools already suffering from increased costs, drops in enrollment, and the ending of federal COVID-19 relief funds.
Now, with state legislators predicting a sour-looking economic revenue forecast, which is set to be released on Nov. 19, and anticipated drops in federal funding, the North Wasco County School District 21 (NWCSD) is scrambling.
Daniel Pedersen, Chief Financial Officer
Daniel Pedersen, the district’s chief financial officer, sees the potential for funding losses in the immediate future as a critical issue being discussed internally, with contingency plans already being made.
“Just like the last several budget years, we are taking precautionary steps to slow spending while we learn more about the projected funding impacts. This includes freezing non-essential hiring and carefully evaluating all open positions; reviewing vacancies to determine whether they must be filled, can be restructured, or can remain open; [and] assessing equitable adjustments across schools and departments to avoid disproportionately impacting any one program,” he said. “Specific anticipated cost savings have not been calculated as yet. Right now, we’re hearing a range of potential cuts from zero to 10%.”
When asked how he sees this impacting NWCSD staffing and operations specifically, he replied, “If deeper reductions are required, they could potentially result in larger class sizes if fewer classroom positions can be supported; reduced / modified program offerings, including electives and extracurricular activities; and limited access to supplemental resources, such as technology upgrades or discretionary materials.”
Cost-saving measures will be aimed at reducing administrative and operational expenses, implementing energy-efficiency strategies, and negotiating contracts where possible.
According to Pederson, no final decisions have been made.
As NWCSD goes through these planning stages, the strategies are being communicated to staff, parents, and the public via monthly board financial updates, publicly-available budget documents and annual audits posted on the district website, and monthly staff and family newsletters that highlight monthly financials.
Currently, according to Pederson, NWCSD is operating with an extremely lean, balanced budget, but like many Oregon districts, is steeling itself for the possibility of adopting an even leaner budget in the coming year. Schools are being asked to do more with fewer state resources, especially during periods of economic slowdown or shifts in state funding priorities.
Of special concern is the current status of contract negotiations with the NWCSD Education Association, and how funding might affect the outcome of these talks.
Pederson indicated that the Nov. 19 forecast will provide an important update on statewide education funding assumptions. Despite not having the ability to predict the final outcome, district administrators are committed to continuing labor negotiations in good faith.
“If the funding outlook worsens and staffing reductions become necessary, we would follow all contractual processes and state requirements. Our goal throughout negotiations is to maintain stability for students while respecting and valuing our educators and staff,” he concluded.
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