Central SD 13J officials warn budget gaps, propose targeted cuts as ESSER funds end

Superintendent Jennifer Cabista and Central SD 13J finance staff told the district'9s budget committee on May 20 that the district faces a tightening 2024-25 general fund as one-time COVID relief (ESSER) phases out, enrollment and attendance decline and several recurring costs rise.

Cabista opened the committee meeting with a budget message that emphasized the scale of the challenge: "This funding does not meet the inflation of payroll, supplies, food, maintenance, or energy," she said, adding that the state'9s current funding model does not solve the near-term shortfall and that the district had already started discussions about reducing positions and programs for 2024-25.

The district'9s director of finance, Cease Coates, walked the committee through the general fund (Fund 100) packet and year-to-date actuals. He explained why property-tax receipts and timing make revenue look front-loaded — "most of us pay our property taxes in November" — and noted that interest income had been unusually strong this year but could decline if the federal funds rate falls. Coates said fees charged to grants (4–5.3% overhead) have been a material contribution to the general fund while ESSER funding was available and that the loss of that money will reduce that revenue stream in 2024-25.

On staffing costs, Coates said payroll remains the district'9s largest expense and that unfilled licensed and classified positions have kept salary spending below budget this year. At the same time the district has had to rely on outside staffing agencies for substitutes and specialized special-education roles; he reported payments through April of about $720,000 to EduStaff and $600,000 to a special staffing agency.

"We've been able to run safely because of those agencies," Coates said, while cautioning that the premium costs for contracted staff are significant. The superintendent described a pay-equity and market study that led to salary adjustments aimed at retaining administrators and competitive licensed and classified pay.

Committee discussion also covered rising professional-services costs (attorneys and consultants). Coates identified legal and consulting work as a notable driver of professional-services spending this year and noted the district is using a consultant, Huron, for leadership and strategic-planning work.

Cybersecurity emerged as another recurring cost: staff said the district incurred expenses during a cyber event this year that were largely covered by insurance, but new insurer requirements have created an unfunded recurring expense for enhanced endpoint protection and multifactor authentication estimated in the low hundreds of thousands of dollars annually.

On reserves and contingency planning, Coates said the district began the year with significant designated reserves and planned contingencies (board policy requires a contingency equal to 7% of annual operating revenue). He said the district expects to carry about $6 million forward into next year under current projections but that the proposed 2024-25 budget would draw that beginning fund balance down toward roughly $3.39 million if all planned spending and projected revenue remain as currently budgeted.

The superintendent and finance director emphasized that the district'9s largest recurring revenue source, the state school fund, is sensitive to Average Daily Membership (ADM) and attendance. Cabista said the district'9s current enrollment was about 3,064 students and that attendance patterns (roughly 63–64% attending 90% or more of the time) affect the calculation. "We have about 100 fewer students enrolled," she said, a shortfall that contributes materially to the budget gap.

Cabista said the district is prioritizing classroom positions and special-education staffing where legal mandates require them, but that planned cuts or modifications could include delaying or scaling back curriculum adoptions (she said the math curriculum adoption is paused or will be modified) and reducing some purchase services and supplies. She described a phased approach for any curriculum spending depending on year-end savings or new revenue.

The committee approved the procedural step to select the presiding officer: Pete Swan was nominated and, with no other nominations, re-elected to preside over the 2024-25 budget committee cycle by voice vote.

What'9s next: staff collected questions for follow-up (enrollment detail by grade, bond schedule and debt timing, contingency movement and fund transfers, and exact counts of licensed/classified positions) and scheduled the next budget committee meeting for May 20 from 6:00 to 8:30 p.m., with the possibility of an additional June 3 meeting if the committee needs more time before the board'9s adoption process.

The district referenced ORS chapter 294 in connection with budget procedures and public notice requirements; Finance staff committed to provide supplemental charts (enrollment breakdowns, bond schedules, and staffing-count comparisons) before the next meeting. The committee recessed until May 20.

Sources: statements and figures presented by Superintendent Jennifer Cabista and Director of Finance Cease Coates at the Central SD 13J budget committee meeting (May 20).