LCSD budget tightens following declining enrollment

Budget adjustments are in the works as the Lincoln County School District Budget Committee reviews a proposed $89,737,618 general fund budget submitted by LCSD Superintendent Majalise Tolan, which includes staffing reductions reflecting declining enrollment and higher operating coats.

State school funding is primarily based on student enrollment. Fewer students results in less state funding. The enrollment reduction will affect the district in 2025-26 unless enrollment projections increase next year. The largest enrollment losses are in the primary grades, specifically kindergarten, according to Tolan.

The 2024-25 total estimated LCSD expenditures are $172,537,208, which is an increase of $11,504,806 from the 2023-2024 budget.

Estimated Revenues:

• State School Fund (SSF) for 2024-25: $22,763,459;

• Local Property Taxes: $45,781,913;

• Other Local Revenue in SSF Formula: $1,463,240.

The General Fund budget is $89,737,618.

“The estimated revenues listed only represent the amount we are getting from the State School Fund,” LCSD Business Director Kim Cusick said. “The remaining $19,729,006 is comprised of the state wildfire grant of $1,034,296, other federal, intermediate and local revenues of $3,764,917, and a beginning fund balance of $14,929,793 which is restricted as $5,353,840 reserves, $4,800,000 transfers to special revenue funds, $3,750,000 contingency and $956,000 building carryover.”

Cusack said the total budget of $172,537,208 includes all grant and special revenue funds, debt service and self-insurance funds.

In her budget message, Tolan said serving in her first year as the Lincoln County School District Superintendent and collaborating with leaders across the district to prepare the 2024-2025 budget has been “a task of ensuring our value of providing every student with an equitable and high-quality education is met while balancing a $172,537,208 budget.

“The annual budgeting process gives us pause to reflect on not only the Lincoln County School District Board of Education’s Strategic Plan and Goals, but also provides the opportunity to apply our school district equity lens (included in the budget document) when making decisions to appropriately implement districtwide strategies in the Continuous Improvement Plan to meet those goals,” she added.

the LCSD goals:

• Demonstrate high expectations for student achievement by supporting an equitable education framework;

• Enhanced communications and community engagement;

• LCSD is a convener and influencer of city, county and state education and economic policies;

• LCSD will provide for the health and welfare of our facilities;

• LCSD will identify the need and development of a possible 2025 bond election.

Continuous Improvement Plan Goals:

• Each LCSD high school will improve their four-year cohort graduation by 3 percent each year or reach and maintain 90 percent over the next three years.

• Each school will increase attendance of regular attenders by 5 percent each year or reach and maintain 90 percent, which will be measured by 90 percent of the students attending 90 percent of the time each year for the next three years.

Budget factors

Besides declining enrollment, Tolan said the district faces increasing operating costs.

“Utilities, transportation and custodial services make up the majority of the purchased services for our district totaling $8,641,459,” she states in the budget message. “These costs continue to rise faster than our revenue, with a 28.2 percent increase in transportation services, 3 percent increase in utilities and 2.98 percent increase in custodial. Charter School Funding totaling $6,310,460 is also budgeted under purchased services.”

The Lincoln County Leader reached out to Tolan for insight into her proposed spending plan.

Lincoln Leader: To be clear, what are the specific (what services do they provide) 8.6 FTE certified, 9.43 FTE classified, and 1.5 administrative employees that we understand will be reduced under the proposed budget?

Tolan: We reduced seven elementary teachers, primarily at our K-2 schools which have the largest declines in enrollment. Classified positions were reduced because program needs changed and grant funding was decreased. Administrative reductions resulted from reduced enrollment and programmatic changes.

Lincoln Leader: What is the proposed general fund budget?

Tolan: The proposed general fund budget is $89,737,618.

Lincoln Leader: What is the amount that needs to be reduced from the general fund in order to provide a balanced budget?

Tolan: By reducing the amount collected for our PERS Bond payments by $650,000 and reducing staffing in the general fund to match enrollment, we were able to balance the budget.

Lincoln Leader: Summarize the specific factors influencing the reductions needed in your proposed budget.

Tolan: With the ending of COVID relief funds and continued declining enrollment, we reduced our budget to fit the current size of our district.

Lincoln Leader: Briefly summarize your message to students, parents, teachers, and staff, about this proposed budget, and its overall ability to help reach the district’s education goals moving forward.

Tolan: LCSD is committed to providing a well-rounded education for all students. It is important to maintain music, physical education, co-curricular and extracurricular programs, counselors in all of our schools, professional learning for staff, and increased bilingual student and family support.

We provide for all of these needs by combining State School Fund revenue with grant funds, including the SIA grant and High School Success grant.

Lincoln Leader: Looking ahead, do you agree with the school superintendents from Portland, Salem-Keizer, Medford and Bend-La Pine message to state legislators that there is a statewide school district funding crisis? If so, what would you suggest as solutions?

Tolan: We will continue to work with the Oregon Association of School Business Officials and the Coalition of Oregon School Administrators to address the need for statewide funding to meet the quality education model identified by the Quality Education Commission.

We are also in regular contact with Representative Gomberg and Senator Anderson about educational needs.

The state’s quality education model recommends approximately $11.9 billion for the biennium in order to provide a quality education to all students. The state’s approved budget was $10.2 billion.

Oregon is a very large state with many unique needs. All students have a right to a fully funded quality education. This will take collaboration across the state to make happen.

The LCSD Budget Committee unanimously approved Tolan’s proposed spending plan on May 16 without any changes. The LCSD Board will vote to adopt the approved budget during its next monthly meeting on June 11.

Read the full LCSD budget proposal at the District’s website.