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District does homework on budget shortfall Phoenix-Talent tries to counteract budget projection By DAMIAN MANN PHOENIX � A projected $300,000 shortfall in next year�s budget could force the school district to reduce staff by six or seven positions and increase class size. Superintendent Dave Willard anticipates that similar reductions may have to be made in the 2002-2003 school year. "We�re looking at it as a two-year process," he said. Willard hopes the reductions can be accomplished through attrition, either from retirement or from those leaving the district. The district also hopes to save money by reducing materials and supplies. "It�s a small amount of our total staff, but we will still see the effects of this reduction," said Willard. The district has 270 employees, of which 174 are teachers. The district found itself in this financial predicament after it used its cash reserves in an effort to keep up with expenses that outpaced revenues. Carryover funds of $1.1 million were spent this fiscal year to maintain an $18.56 million budget. District Budget Manager Doug Spani has said the district should have reserves of 5 to 10 percent � about $900,000 to $1.8 million � to create a cash cushion. Willard said a lot of the district�s financial problems depend on enrollment, which brings in about $5,000 a student. It also depends on what happens to Gov. John Kitzhaber�s $5.2 billion education plan in the upcoming budget. Phoenix-Talent has seen 234 transfers of students out of the district, primarily to Ashland and Medford. But 117 students transferred into the district, providing a net loss of 117, or a fiscal drain of $500,000 a year. The district has wrestled with this problem recently, once considering an all-out ban on transfers. But with the public outcry against such a policy, Willard said he will propose that the board allow parents to continue transferring to other districts but eventually make it more difficult to receive a transfer. Willard said he is also nervously awaiting the outcome of the legislative wrangling over the governor�s budget. If cutbacks are made, this would wreak further havoc on Phoenix-Talent�s budget as well as the budgets of districts throughout Jackson County. Districts will have a better idea about their financial future in May, when the Oregon Legislative Revenue Office releases much-anticipated revenue projections based on income tax returns. With a downturn in the economy, many economic analysts predict the state�s projection of a $600 million shortfall could be worse. If so, the Legislature could pressure the governor to reduce spending on education. Other districts that have announced cutbacks are: Ashland, Medford, Eagle Point and Rogue River. "We�re just hoping that enrollment stays steady and they don�t make any changes to the funding formula," said Willard. Reach reporter Damian Mann at 776-4476, or e-mail [email protected] Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2001 Mail Tribune, Inc.