Professional Documents
Culture Documents
Some districts haven’t had any public meetings on their 2019-20 Proposed Budgets yet
Portland Public 1J (41,326 Students) - $17 million shortfall
Adding 27 FTE to Licensed Special Education Staff, cutting 45 FTE Licensed non-special
education staff, cutting 17 other FTE, and “other” cost reductions
Beaverton (41,135 Students)- $35 million shortfall
Reducing 200 licensed positions and approximately $15 million “other” cost reductions
Hillsboro (20,206 Students) - $9.6 million shortfall
Reducing 38 licensed FTE, 37.5 Classified FTE, 3 Administrators and “other” cost reductions
Bend LaPine (18,325) – Assuming increasing enrollment
Maintaining staffing and days
Salem Keizer (41,326) – Assuming increasing enrollment
Adding 9.75 FTE to Middle School, adding 22 FTE Special Education and adding 15 FTE
Transportation (boundary adjustments)
5
Section II
District Overview and the Process from Mission to Budget
The District
6 Overview Basic Facts
Medford School District 549c was formed in 1959 encompassing approx. 370 square miles:
23 school sites, 1.9 million square feet of facility space, over 276 acres of grounds
The District is currently comprised of 14 elementary schools, 2 middle schools, 2 high schools, 1
secondary alternative high school and 4 charter schools
The District is forecasting 1,290.36 FTE employees for fiscal 2019-20
Our food service vendor, Sodexo, serves approximately 1.6 million meals and equivalent meals each
year
Drivers for our transportation vendor, First Student, drive over 1.0 million miles per year transporting
district students
The District staff and above listed facilities are projected to serve 14,270 students in 2019-20 for which
the District receives 1.0 base weightings for state funding
According to the most recent 2016 US Census Small Area Income Poverty Estimate (SAIPE) for school districts, the
District has approximately (18.6%) living in poverty or 2,665 students for which the District receives an extra 0.25
weighting for each qualifying student or 666.14 weightings (4.65%) for funding
50.3% of our students qualify for free or reduced lunch
In the end, the district effectively gets extra funding for about 9.3% of students on free and reduced lunch
Approximately 900 students are projected to be English Language Learners (ELL) for which the District receives
an extra 0.50 weighting for each qualifying student for funding
The District receives an extra 1.0 weighting up to 11% of total enrollment for students eligible for special
education services. Based on recent growth trend, approximately 2,300 students or 16.1% are projected to be
eligible for special education services for 2019-20.
7 Board of Directors
The District is governed by a publicly elected seven member Board of
Directors who sets the District Mission, sets District Goals and hires and
manages the District Superintendent
District Mission
We are a high quality teaching and learning organization dedicated to
preparing all students to graduate with a sound educational foundation,
ready to succeed in post-secondary education, and to be contributing
community members.
District Goals
1. Foster Academic Excellence
2. Assure Equity for All
3. Improve 3rd grade reading proficiency
4. Increase high school graduation rate
8
Superintendent
All District Funds Staffing By Function
Staffing
FY19‐20 FY18‐19 Change Variance
Proposed Amended FY19‐20PB FY19‐20PB
Function Description Budget Budget FY17‐18 FY16‐17 FY15‐16 FY14‐15 VS 2014‐15 VS 2014‐15
TOTAL INSTRUCTION 945.36 941.86 901.71 866.64 845.49 799.31 146.05 18.27%
Subtotal Direct Student Support 77.75 73.75 61.94 63.72 63.94 56.27 21.48 38.18%
Subtotal Direct Staff Support 31.03 30.56 39.04 30.43 31.40 29.79 1.24 4.15%
Subtotal General Support 236.22 233.22 225.44 217.48 217.69 207.52 28.70 13.83%
TOTAL SUPPORT SERVICES 345.00 337.53 326.42 311.63 313.03 293.58 51.42 17.51%
GRAND TOTAL 1,290.36 1,279.39 1,185.66 1,178.26 1,158.52 1,092.89 197.47 18.07%
11
Section III
Key trends “Seeing the forest through the trees”
Enrollment trend: Minimal Growth for 2019-20 (Page 17)
District enrollment has grown 2,729 ADMr or 23.6% over the last decade with Charter School enrollment growing from 100 to 1,633
and non Charter School enrollment growing 1,096 or 9.6% over the decade. If you exclude the estimated 500 ADMr increase in
12 enrollment over the last decade from the movement to full day Kindergarten, non charter growth has been 596 or 5.2% over the
decade resulting in a compound annual growth rate of 0.51%.
Statewide enrollment dropped in 2018-19. In light of this and trends we are seeing at the Medford School District, our growth
projection for 2019-20 Proposed Budget is conservative.
The projected consolidated ADMr for the District in 2019-20 is up 20 or 0.14% from the 2018-19 projection of 14,250. Of the 20
ADMr increase, all growth is assumed to be in online school enrollment and will fund a 2.0 licensed FTE addition for that program.
Enrollment trend: Special Education Child Count (SECC*)
(Page 34)
13 As of December xxxx
Year *SECC Count SECC % of ADMr 1 Year Change 2 Year Change 3 Year Change 4 Year Change 5 Year Change
2019F** 2,301 16.10% 7.00% 18.95% 25.44% 34.61% 42.53%
2018 2,150 15.07% 11.17% 17.23% 25.80% 33.21%
2017 1,934 13.66% 5.45% 13.17% 19.83%
2016 1,834 13.13% 7.31% 13.63%
2015 1,709 12.55% 5.89%
2014 1,614 12.05%
District Enrollment 1 Year Change 2 Year Change 3 Year Change 4 Year Change 5 Year Change
2019F 14,291 0.14% 0.97% 2.35% 4.95% 6.74%
2018 14,271 0.83% 2.21% 4.80% 6.59%
2017 14,154 1.37% 3.94% 5.71%
2016 13,963 2.54% 4.29%
2015 13,617 1.70%
2014 13,389
**Note 2019F for SECC count is based on trend for illustration purposes only. 2019‐20 Budget assumes zero increase.
Reasons for SECC increase:
More students with Individualized Education Plans (IEP) are moving into the District (two year analysis
being prepared by Student Services)
The Student Services assessment and evaluation team are identifying students more accurately and
comprehensively than before
There is a significant increase in students eligible for Autism services
There is a hypothesis that there are some students currently eligible for SpEd (IEP) that should instead
be on 504 plans
Actions:
Conduct an audit to identify and address cases in which students need 504 plans instead of an IEP
Review eligibility criteria for special education eligibility
504 Plan vs Individualized Education Plan
14
There is some confusion regarding the similarities between a 504 plan and
an Individualized Education Plan (IEP). While both are intended to help
children with disabilities learn with adaptations to their needs, they take a
different approach.
A 504 plan is intended for children with a wide range of disabilities who are,
nevertheless, able to participate and succeed in a general education
classroom. An IEP, on the other hand, is intended for children with a specific
set of diagnoses who require special education services.
A 504 plan may include just one or two accommodations (a peanut-free
environment, for example) that the school agrees to provide. An IEP is a
legal document which includes objectives, goals, accommodations, and a
description of an agreed-upon educational setting.
Enrollment trend: Special Education Child Count (SECC)
(Page 34)
15
How does 549c SECC % compare to other districts?
School District ADMr IEP % IEP
Salem Keizer 41,326 6,815 16.49%
Reynolds 10,859 1,787 16.46%
North Clackamas 17,170 2,776 16.17%
Portland 1J 46,608 7,411 15.90%
Medford 549c 14,250 2,148 15.07%
Hillsboro 20,206 3,040 15.05%
Phoenix Talent 2,575 383 14.87%
Klamath City 2,955 425 14.38%
Eugene 16,920 2,432 14.37%
Central Point 4,834 684 14.15%
Springfield 10,876 1,420 13.06%
Gresham Barlow 11,527 1,500 13.01%
David Douglas 9,687 1,225 12.65%
Eagle Point 4,150 520 12.53%
Beaverton 41,135 5,046 12.27%
Three Rivers 4,621 564 12.21%
Ashland 2,944 330 11.21%
Tigard‐Tualitin 12,399 1,295 10.44%
Bend LaPine 18,325 1,880 10.26%
Special Education spending across all sources, has grown $4.0 million or 20.6% over the last two years
alone.
Special Education Child Count (SECC enrollment page 9 of this presentation) has grown 33.21% or 5 times
as fast as total enrollment over the last four years, and is projected to increase 42.53% or 6.3 times as fast as
total enrollment over the December 2014 to December 2019 five-year period.
Students eligible for Special education are projected to make up 16.1% of all students in 2019-20 up from
12.05% just five years ago. The extra state weighting for funding of special education (IEP) is limited to 11%
of enrollment, therefore the District will not receive an extra weighting for funding for approximately 1/3 of
the projected students eligible for Special Education in 2019-20.
Assuming 7% SECC growth for 2019-20, if the District were to receive an extra weighting for all special
education students above the 11% cap, it would result in approximately (2301 SECC-(14,291*.11)) = 729
more weightings times $8,178/ADMw equals approximately $6.0 million unfunded mandate in 2019-20.
Enrollment trend: SECC and Non SECC
December 2014 to December 2018
17
Total SECC Non‐SECC
District Wide District Wide District Wide
December 2018 14,271 2,150 12,121
December 2014 13,389 1,614 11,775
2014‐2018 Change in Enrollment 882 536 346
Est. 2015‐16 Enrollment Increase Due to Shift to Full Day K 500 75 425
2014‐2018 Change in Enrollment Excluding Shift to Full Day K 382 461 (79)
% Change Excluding Impact of Shift to Full Day K 2.9% 28.6% ‐0.7%
* Charter meaning four district charter schools (Madrone Trail, LOGOS, Kids Unlimited Academy, The Valley
School of Southern Oregon). The 1,703 December Non‐SECC Charter enrollment is an estimate is an
extrapolation of full year data 0630xx instead of December data
**Non Charter meaning the 19 district schools ‐ 14 Elementary, 2 Middle Schools, 3 High Schools
Enrollment Summary
18 (Pages 12-17 of this presentation)
District wide non-charter enrollment growth over the last decade, excluding the increase
from the movement to full day kindergarten in 2015-16, has been about 596 students or
0.51% growth per year
From 2014-2018, Excluding 500 ADMr Growth From Shift to Full Day Kindergarten in 2015-16:
District wide enrollment has grown 382 students with more than 100% of the growth (461
students) coming from SECC
Non-SECC enrollment is declining. District wide non-SECC enrollment has dropped 79
students and non-SECC non charter has dropped 379 students or about 95 students per
year
SECC enrollment has grown rapidly over the last five years, much faster than overall
enrollment
The State of Oregon caps additional funding for SECC students at 11% of enrollment
The District SECC enrollment is over 11%, resulting in a projected unfunded mandate for
2019-20 services it is providing to special education students of approximately $6 million
The current unfunded mandate as of December 2018 is approximately $4.8 million
The State of the Oregon
19 Public Employee’s Retirement System (PERS)
Unfunded Actuarial Liability(UAL)
Milliman is the actuary for Oregon PERS
Milliman provided an update to the PERS Board in Dec. 2018 on earnings
through 09/30/2018. The PERS system earnings were 0.48% for the previous
year versus the targeted rate of 7.2%, bumping the UAL from $22.0 B to $26.6 B,
and overall PERS system funding to 69% funded.
Why does the percentage the PERS system is funded matter? – PERS is limited in
how much they can increase the employer contribution rates each biennium
based on how much the plan is funded per PERS rate collar methodology
When the PERS plan is 70% or more funded, the rate employers pay can
be increased by the greater of 3% of payroll or 20% of the current base
rate each biennium
Between 60% and 70% funded – a graduated double rate collar is in
effect meaning as the plan funding drops from 70% to 60% funded, the
amount employer rates can increase each biennium goes up from 20% at
70% funded to 40% per biennium at 60% funded
When plan funding falls below 60% funded, the rate collar doubles to
allow an increase of 6% of payroll or 40% of the current base rate
whichever is greater
The State of the Oregon
20 Public Employee’s Retirement System (PERS)
Unfunded Actuarial Liability(UAL)
Hypothetical PERS Biennial Change Scenarios at Various Funding Levels
**Include employer contributions, UAL contributions, and employee contributions for employees
where District pays employee portion.
• Over the last four years, employer paid PERS contributions by the District have grown
$8.0 million or 58.0% or 3.7 times as fast as salary and wages. In terms of dollars, PERS
has grown $8.0 million, almost as much as salary and wages, which have grown $9.2
million or 15.7% over the same timeframe
• If PERS employer contribution dollars had grown at the same rate as wages, 15.7%
over the last four years, the District would be spending $5.9 million less per year on
PERS in 2019-20
• PERS Sneak Peak 2021-23 - Costs are projected to go up an additional $5.2 million for
each year or $10.4 million for the 2021-23 biennium assuming equal payroll based on
projected increases in employer contribution rates
Impact of SpEd Unfunded Mandate and PERS Cost Increases
Over the last 4-5 Years
25 How much State School Funding is needed to Offset?
What does this mean for the future?
• There has been a $12 million loss in resources at Medford School District 549c in the last five
years due to the combination of an estimated $6.00 million unfunded mandate for services
provided to students eligible for special education and a $5.9 million increase in mandated PERS
costs
• How much additional K-12 State School Funding is necessary to backfill Medford 549c to make
up for the preceding $12 million loss in resources?
• If we assume Medford 549c is approximately 2.4% of all weighted enrollment (ADMw) in
Oregon and additional funding would be allocated on this basis, the legislature would need
to increase funding approximately $1 billion over the biennium from its current projected
level of $8.8715 billion to $9.8715 billion to offset Medford 549c’s $12 million loss in resources
over the last 4-5 years. ($500 million/per year additional funding times 2.4% = $12 million SSF
increase for Medford 549c)
• Assuming K-12 funding continues to grow 4-4.5 % per year over time, assuming PERS cost
increases continue to grow at the current or higher rate and/or assuming SpEd unfunded
mandates continue to grow in line with recent trends, the District is going to have to
restructure/reduce overall services/staffing beginning with the 2021-23 biennium to balance the
budget in 2021-22
21st Century Learning
Implementation of Chromebook Technology In the
26 Classroom
• The availability of classroom technology has increased rapidly over the last five years. The
District has gone from 297 to 13,757 Chromebooks in five years.
• The Non-Charter portion of the District has more Chromebooks 13,757 than students 12,517
• The total number of Chromebooks, Laptops, PC’s, printers and other mobile devices
managed by NTS has more than doubled to approximately 23,000 but NTS staff has only
increased 3 FTE over the same timeframe
• Replacement cost of current Chromebook inventory $4.2M
• Assuming a 4 year replacement cycle, Chromebook replacement costs will average
$1.05 million per year assuming there is no additional increase in inventory
21st Century Learning
27 Chromebook Curriculum and 1to1 Pilot
• The Oregon State School Fund Co-chairs 2019-21 budget assumes $8.8715 billion or an 8.2%
increase over the 2017-19 $8.2 billion budget, growing at 4.05% per year
• For the District, Revenue is estimated to increase $5.91 million or 4.1% over prior budget and
includes the assumption of a $0.5 million 2018-19 true up in 2019-20. In 2018-19, there was a
$0.99 million or $0.49 million higher prior year revenue true up. If the prior year true ups were
equalized in both years, adjusted revenue would be up $6.32 million or 4.4%.
• Local sources, primarily property taxes, are up $1.25 million or 3.1%.
• Primarily Property taxes up $1.16 million or 3.1%
• Interest Income up $0.08 million due to higher interest rates
• Intermediate sources are up $0.04 million or 1.38% essentially flat to prior year
• State sources are up $4.6 million or 4.5%.
• Net State School Fund (SSF) is up $4.6 million or 5.5%
• All other state sources are flat year over year
General Fund Financial Summary
33 Transfers in from Other Funds (Page 14)
Transfers in from other funds are equal to last year at $1.4 million.
• $1.4 million is being transferred in from the PERS reserve fund
• After the $1.4 million transfer in 2019-20 there will be $2.0 million
left in the PERS reserve fund
General Fund Financial Summary
34 Beginning Fund Balance (Page 14)
Total Proposed FTE of 1,290.36 is up 10.97 or 0.86% from Current FTE of 1,279.39
General Fund FTE of 1,169.2 is up 16.47 FTE or 1.4% from current FTE of 1,152.75
Special Revenue Fund FTE are down 5.5 FTE or 4.3% to 121.15 from 126.65
4.5 FTE shifted from Measure 98 to the General Fund and one open position eliminated
The 10.97 FTE increase across all funds includes 6.0 FTE in Special Education and
4.97 FTE in non Special Education assignments
The 6.0 FTE increase in Special Education assumes no increase in SECC count and
includes:
2.0 FTE student success specialists in Early Intervening Services, 1.0 FTE Behavior Support in
Psychological services and moving 3.0 FTE in Psychological Services in house (offset by
reduction in professional contract services)
If the increasing SECC count trend continues in 2019-20, additional staffing may be necessary
The 4.97 FTE increase in non Special Education areas includes:
2.0 FTE for Online School teachers in High School, 1.0 FTE Dual Language Coordinator, 1.0 FTE
IT Analyst II, 1.0 FTE Help Desk Supervisor in Network and Telecom Services, 1.0 FTE Career
Center and 0.47 FTE IMC Tech partially offset by a reduction of 1.0 FTE unfilled Check &
Connect position and a 0.50 reduction in Certified at NMHS
General Fund Financial Summary
38 Employee Payroll Benefits (Pages 25-26)
Email any questions or comments you have to Brad Earl by noon Wednesday
May 8th
Brad will email all of you with the group email list in the next 24 hours
Next Budget Committee Meeting is Monday May 13th at 6 pm
3rd Budget Committee Meeting (If needed) - Tuesday May 21st at 6 pm
Board Meeting: Public Hearing on the FY2019-20 Budget – Monday June 3, 7 pm
Board Meeting: Adoption of the 2019-20 Budget – Monday June 17, 7 pm