Want more?  Pay more.  A simple philosophy of allowing those who want more from government to pay more...read on.

Date: April 15, 2003

To:    Molalla River Parents and Staff

From: The Board of Education

Re:    Current Cash Flow Projections

In January, the Molalla River School Board met with the Molalla River Education
Association and the OSEA Classified Union and negotiated to reduce our school year by 15 days.  This difficult decision was based on the information that was provided by the Oregon Department of Education as of January 30th. The Board had been directed to anticipate deep revenue shortfalls based on the State and Local Revenue Projections, and budgeted expenditures as of January 2003.

It is a strange position the Board finds itself. According to current legislative budget projections for the coming biennium, budget reductions will again be necessary. The Board has been instructed that currently the State's 2003-2005 education budget will be front loaded, meaning we will receive more money for the 2003-2004 budget and less for the 2004-2005 budget. We find ourselves unsure where to proceed. The following projected revenue funds could offset some of the anticipated reductions for the next year or two. In addition, the District's current contingency is approximately 1.5% of our budget, while good business practice recommends a contingency between 5% and 10%.

At the Board's, April 10^th regular meeting the Superintendent and Business Manager reported to the Board and public that there is a significant difference in the estimated ending fund balance from February's cash flow projection report in comparison to March. These amounts are approximates and are comprised of higher revenue sources along with lower expenditures.

·         $195,000 -      Taxes and other local revenues were underestimated in the
original budget.

·         $255,000 -      Thanks to the efforts of Pat Jackson, our Supported Ed. Director we
were granted the maximum allowed by the State for supplemental
special education funds, the amount we received was
significantly more than anticipated.

·         $270,000 -      In January, the Board directed our Business Manager to participate
In a "PERS Bond Sale". In March, at the conclusion of the sale,
the MRSD benefited with a net savings.

·         $325,000 -      Modified spending freeze savings. Approximately $70,000 is due to reduced costs for utilities. Energy costs did not increase at
the rate the Board was originally advised to anticipate. $90,000 was
saved in supply costs as a direct result of administrators, teachers,
staff and students tightening their belts and making do. Other costs
savings included delaying an upgrade to our computer network,
limiting our maintenance and repairs and fewer dollars spent on
legal fees than anticipated.

·         $165,000 -      Transportation savings due to a modified budget, fewer routes
used due to special education students transferring out of the
district, more efficient routes that were implemented during the year
cutting 0.5 hours per route per day and cut days from the calendar.

·         $58,000   -      Blue Cross Health Insurance Rebate.

The Board has a Budget Worksession scheduled for Tuesday, May 6,7:00pm in the Molalla
Elementary cafeteria. The Board and budget committee members are looking for your input on
the proposed budget for next year.

If you have any questions or suggestions please feel free to contact your Board members, foi
phone numbers please contact the District Office at 503-829-2359.