[Busmgrs] A message from Michael Elliott: 2011-2012 School Year Subaccount Update

[WILTFONG Michael]

District Business Managers,

We've been getting some questions regarding SB 5552 and SB 5553, and the 2011-12 School Year Subaccount ("SYS"). Below is an observation and questions & answers to hopefully help with your understanding based on what we know as of today.

 Observation:

The bill deliberately is lacking in specificity and allows school districts to outline how they will achieve learning opportunities and to minimize impact of school day reductions.

It is the intention of the Legislature to have school districts demonstrates a good faith effort to achieve enhanced learning opportunities and to minimize the impact to school day reductions.  The plan/report the school district submits should clearly demonstrate that the district took steps to prioritize services to children, but this does not limit the district's capacity to bargain with its employees.  Enhancement of learning opportunities was specifically left to the districts to outline what/how this would be achieved. I.e., how did the school district invest its share of the SYS funds to get the best possible outcome given the circumstances?


Q & A:

1.       Is the $100M subaccount included in the SSF estimates?  A.   No. The $100M SSF subaccount is not included in the individual district State School Fund estimates.  It is listed in a separate estimate that includes the SSF grant and the $100M grant based on ADMw.  Added together they would provide a total estimate of revenue for the school district. This information was posted April 13, 2011, and can be found under the News Announcements on the State School Fund website at the following link: http://www.ode.state.or.us/news/announcements/default.aspx?topic=168
2.       Where do I code the revenue and expenditures for the subaccount?  A.  The $100 million of SYS funds should be recorded in the General Fund (100), Source code 3299 - Other Restricted State Grants-in-aid.  ODE is waiting to hear if there will be any subsequent reporting requirements.  The expenditure side must be tracked to allow for adequate reporting when requested.  It has not been determined if a statewide tracking code will be put in place, but until then please use your own tracking method.
3.      May districts use the SYS funds to pay existing teachers COLAs, step increases, one time payments or other payments and still qualify under SB 5553?  A.  Not specified at this time.  If SYS pays for raises while the school district makes no attempt to minimize a reduction in school days, this would likely not be well received by the Legislative review.
4.      What type of reporting/application process will Districts need to undergo in order to obtain the SYS funds?  A.  There's no prescriptive form and we would anticipate the format to vary by district depending on how they use the funds.  We would refer SDs to the second paragraph of the Budget Note in SB 5552:

a.      At a minimum, a school district's or program's written proposal shall include a description of the enhancements and activities along with the funding for each with comparable data for the 2010-11 school year, any measurable outcomes, and how the school district or program determined its priorities for expenditures. Proof of compliance shall consist of a signature by the School District Superintendent certifying compliance along with proof of the School Board's review and adoption of the written proposal (e.g., Board minutes, resolution, or signatures).
b.      These funds will be made available through EGMS, but should be run through the General Fund as that is where the anticipated expenditures will be to qualify for a reduction in class size, increase school days and etc.  It is my understanding each districts' allocation will be posted on EGMS and will be available to each district as other grants are handled.
5.      If a district is planning on cutting days from the school year but can use the SYS funds to cut fewer days, is that an increase of the school year that would qualify?  A.  Yes.

6.      If a district is able to use SYS funds to shift non-instructional days to instructional days, does that qualify as an appropriate use of SYS funds?  A.  Yes.
7.      May SYS funds be carried over from 2011-12 to 2012-13?  A.  No.

Again, this information is based on what is known at this time. As more questions/concerns are identified, we will do our best to respond to the field.

Thank you,

Michael Elliott & Barb Cruickshank
Oregon Department of Education


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