North Marion SD 15 budget committee approves proposed $27.1 million 2024'25 budget and imposes taxes for fiscal year

The North Marion School District budget committee approved the district's proposed 2024'25 general fund budget of $27,107,658 and voted to impose categorized taxes for the 2024'25 fiscal year after a public presentation and committee discussion.

Superintendent William B. Rhodes presented the budget message, saying the proposed general fund is balanced at $27,107,658 and is based on an assumed state school fund allocation. "This proposed general fund budget assumes a state school fund allocation of $18,477,620," Rhodes said, adding that the district plans strategic investments in early literacy, career and technical education, refreshed instructional materials, and supports for multilingual students. He noted that personnel costs represent roughly 77% of the general fund and the budget includes a 3.5% cost-of-living adjustment and an additional $70 per month in health insurance.

Linda Murray, who guided members through the budget book, pointed committee members to pages showing multi-year staffing views, expenditure summaries and capital-project transfers. Murray noted recent bond-funded facility work, including new roofs, HVAC upgrades and a new soccer facility, and identified a roughly $5,060,000 transfer in/out tied to capital and interest-savings activity.

Committee members focused questions on transportation and utilities costs, driver recruitment, and one-time ESSER funds that temporarily supported higher pay or bonuses. "With the transportation contract coming to an end in 2027, we may need to renegotiate routes and terms," a committee member observed; staff said driver recruitment and labor market pressures, rather than fuel alone, have driven recent cost increases.

Members also discussed the proposed contingency and ending fund balance. The budget sets contingency at about $1,163,607 and an ending fund balance target of approximately 4.5%. Emily Hammett said she would vote for the budget but voiced concern about the lower balance: "I will be voting for the budget, but I'm very uncomfortable with the 4.5% ending fund balance," she said, noting the board's prior target of 6% and auditors' guidance that higher reserves (7% to 10%) are desirable.

After questions and discussion, Linda Murray moved to approve the proposed 2024'25 budget as presented; Emily Hammett seconded. The committee approved the motion by voice vote; the chair voted in favor. The committee then considered and passed a resolution to impose and categorize taxes for fiscal year 2024'25 at the district's permanent rate as read in the resolution.

The superintendent and staff emphasized that declining enrollment remains the district's principal long-term concern and said they will continue monitoring state funding calculations and enrollment trends as the next biennial budget is set. Staff noted that some one-time federal and bond funds have supported capital and program investments but are not permanent revenue sources.

The committee noted a follow-up meeting scheduled for Thursday the 23rd if further deliberations are required; otherwise staff will proceed with budget adoption steps required by ORS 294.391.