[Busmgrs] 2015-16 Estimates

[ELLIOTT Michael S]

Dear Business Managers,

I know a lot of districts are looking for 2015-16 estimates that include the additional $105,782,000 that is to be given to the State School Fund from the increase in the estimated General Fund revenue. Many of you are also asking about the Corporate Kicker and how that will be included in the final number for the SSF.

The bad news is that ODE has yet to receive clear direction from the Legislature as to how the additional $105.8 million will be distributed in the 2015-17 biennium. Also ODE has been told that the earliest that we could receive this direction would be next week. Because of this lack of clear direction I am unable to put out an estimate for 2015-16 that includes the additional revenue from the May Forecast. I want the information to be accurate and this time accuracy will need to win over timeliness of the information. I apologize for the burden because I know may districts are wrapping up their 2015-16 budgets. As soon as ODE receives clear direction I can issue an estimate.

The bad news extends to the Corporate Kicker as well. Right now it is unclear how that revenue fits into the SSF formula. There are suggestions that some of the Corporate Kicker has already been included in the $7.255 Billion base. Some are suggesting that none of the Corporate Kicker has been included. Because of this uncertainty it is highly unlikely that ODE will be including additional revenue from the Corporate Kicker until we have clear indication that such additional money is in the basic SSF Formula.

I do have some good news. First, I am including two tables below that show an estimated impact to a district for the $105.8 million. The first table shows what the statewide average per weight increase would be for districts at a 50/50 split and where all of the funding would be put in 2016-17. Additionally this first table is based on 704,000 weights assuming that HB 2150 does not pass. The second table is the same information but is based on 700,000 weights which assumes that HB 2150 passes.

ADMw including ORCA weights (704,000)
        2015-16 2016-17
50/50 split      $    75.13      $    75.13
All in 2016-17  0        $  150.26

ADMw not including ORCA weights (700,000)
        2015-16 2016-17
50/50 split      $    75.56      $    75.56
All in 2016-17  0        $  151.12

I am also including as an attachment an updated estimator that includes all of the most recent carve-outs and assumptions for 2015-16. Districts will be able to use this to estimate the impact to their individual districts using district assumptions. Districts can use this tool to divide the extra funding how they want to answer questions moving forward.

Thank you for your patience. Please let me know if you have any questions.

Michael


Michael Elliott
State School Fund Coordinator | Office of Finance & Administration|School Finance & Pupil Transportation Unit| Oregon Department of Education
Office: 503.947.5627 | Fax: 503.378.5156 | *michael.s.elliott at state.or.us




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