Document text
CLEAR Temp: 41 °F Wind: NE at 5 mph Friday, April 25, 2003 SECTIONS Home Page Local News Sports Business Obituaries Life Opinion - Politics AP News Weather Classified Archives Site Map EXTRA HomeLife Magazine W3 Magazine Jobs @ Mail Tribune Tempo A & E Oregon CarZone Wellness Connection Real Estate Newspaper in Education Prime Times Outdoor Journal Personals Movie Times TV Times E The People CLASSIFIEDS Find a Car Find a Home Find a Job Find Everything E SOUTHERN OREGON Automotive Communities Entertainment Publications Recreation Calendar ABOUT US FAQ What's New Advertise Home Delivery Classified Ad Contact Us Media Kit Email Story to a Friend April 15, 2003 Medford school budget hinges on state actions By JILL BRISKEY Mail Tribune If the best-case scenario pans out, the Medford School District will be forced to slash $5.4 million from next year’s budget. "No matter how you look at it, it’s not a pretty picture," said Superintendent Steve Wisely on Monday. Because employee salaries and benefits make up 85 percent of the district’s budget, school board member Joe Frodsham said eliminating positions is the only realistic way to plug the gaping hole. "Unfortunately, the budget is balanced on the backs of teachers and classified personnel, and that’s a shame. It’s either fire teachers or shut down," he added. "The only thing we can cut, that we have control over, is personnel." Medford administrators are basing the $5.4 million deficit on a number of uncertain factors, including a proposed cap on the Public Employees Retirement System (PERS) and the governor’s proposal to allot $5.05 billion to the state education fund in the next biennium. Several bills to rein in PERS are currently floating through the Legislature. But if the PERS proposals are rejected, Wisely said Medford’s deficit will increase to an estimated $7.1 million. Medford’s budget hole could grow even larger when the state releases its revised budget on Thursday or Friday. The $5.05 billion allotted to the state’s education fund could shrink to $4.6 billion, legislators speculate. It’s still unclear how much of that 11 percent decrease would end up costing the Medford district. School officials are still working under the assumption that the governor’s proposal of $5.05 billion will stand. "That’s the only documented information given to us by the state," added Wisely. "Of course we are looking at other alternatives if any changes are made." According to Wisely, the district’s general operating budget is expected to increase from 2002-03’s total of $82.5 million to $88.4 million next year. The spike is based on a 15 percent increase in employee health insurance costs and a required 3 percent salary increase for all district workers. Despite the increase, Wisely said the district will, at most, receive $81 million in state and local revenue — $1.5 million less than last year. "Even though we’ve always had to cut, we have always had an increase in revenue," said Frodsham. "Yet we still have these increases in costs. That throws you in the hole." Wisely said by freezing vacant positions, the district can probably cut $3.2 million from next year’s budget. But he added it’s unclear what additional positions will have to be eliminated to balance the books. The remaining 15 percent of the district’s budget includes everything from supplies to heating costs — fixed-cost items where savings are particularly hard to find. In 2001-02, the district cut $1.8 million from its budget and eliminated 35.5 jobs, 21.5 of which were teaching positions. In 2002-03, $5.6 million was shaved from the budget — most of which was done by slashing 54.4 positions, cutting 10 instructional days from the year and using $700,000 from the district’s $950,000 contingency fund. Reach reporter Jill Briskey at 776-4485, or e-mail [email protected] Printer Friendly Version Email Story to a Friend Subscribe Archive: Click to Search Mail Tribune Home Local News | Sports | Business | Obituaries | Life Opinion - Politics | AP News | Archives | Site Map E Southern Oregon | Classified Copyright © 1997-2003 Mail Tribune. All rights reserved. Privacy Policy | Terms & Conditions Website Feedback A D V E R T I S E R S