Oregon Budget Law (ORS 294) sets the standard for preparing and presenting the district’s annual budget which outlines the programs and services of the district. All Oregon local governmental units must plan a budget that has equal resources and requirements ... a balanced budget. This proposed budget document includes estimated resources and requirements for Harney ESD for fiscal year 2010-2011. This budget document has been prepared using the Program Budgeting and Accounting Manual for School Districts and Education Service Districts in Oregon.

 

This budget adheres closely to the enclosed 2010-2011 Local Service Plan developed and approved jointly by the HESD Board of Directors and the component school districts. HESD and the component school districts met monthly this past fall to discuss individual as well as common needs. As a result of these meetings, services for professional development have been significantly expanded upon and the unemployment trust fund will continue to be capped in the 2010-2011 fiscal year. There was also much discussion about the rural music program. The HESD Board of Directors strongly believes that music is an important and integral part of our kids’ education. In the December 9th monthly board meeting, the HESD Board of Directors voted unanimously not to raise the cost charged to school districts choosing to participate in the music program for the 2010-2011 school year.

 

HESD’s General Fund is essentially capped at $1 million dollars. The passage of Measures 66 and 67 this past January did not have a direct effect on HESD, however it does effect HESD indirectly in determining how best to support the component school districts. By focusing on services that are beneficial to all the component school districts, and ‘leveraging the dollar’, the component school districts are able to receive services they could not afford on their own. HESD will continue to focus on supporting education for all Harney County students.

 

In 2007, the Oregon Legislature passed a law which establishes an Oregon Educators Benefit Board (OEBB) to create and administer health plans for education districts in Oregon. This new plan was implemented October 2008. Last year, the HESD Board of Directors voted to cap group health insurance at the employer portion of $985.50, to help curb rising insurance costs. The employer’s portion of the cap will remain unchanged for the 2010-2011 fiscal year. The state average for employer’s caps according to Oregon School Boards Association is $995.01.

 

The PERS (Public Employees Retirement System) employer rate for the 2009-11 biennium is 14.22% for Tier I/II eligible employees and 14.74% for OPSRP (Oregon Public Service Retirement Plan) employees. This is a reduction from the previous biennium 2007-2009 when rates were 17.64% and 19.91% for Tier I /II and OPSRP respectively.  Savings resulting from the reduction of PERS rates will be put in a reserve fund to help lessen the impact of a considerable PERS increase for the 2011-2013 biennium when PERS rates are projected to increase by 6%. This decision is based on recommendations from PERS. This budget reflects a 3% cost of living increase for HESD and Eastern Oregon Technology employees. There were no cost of living increases given to employees in the 2009-2010 fiscal year. Wage increases for the Early Childhood Center will not be determined until October 2010, when awards for the Early Childhood Programs will be received. When determining the viability of a cost of living increase, the higher 2011-2013 PERS rate was factored into calculations to determine future cost feasibility. HESD wanted to make sure that a cost of living increase could be substantiated in the future.

 

Upgrades to Windows 7 operating system as well as new computers to replace computers that have reached end of life are included in this budget. These upgrades are being made in response to Microsoft’s announcement that at the end of 2010 Microsoft will no longer be supporting the XP and Vista operating systems. It is also anticipated that OAKs, the Oregon statewide assessment system will be moving to the new Windows 7 operating system.

 

In April 2011, HESD will make the final loan payment for the Early Childhood Center resulting in the closing of Debt Service Fund 302 at the end of the 2010-2011 fiscal year. This will be the last payment of this 5 year loan.

 

HESD mileage reimbursement policy was modified by the Board of Directors in 2004 to agree with the “Federal Standard Mileage Rate for all business miles driven.” Current federal mileage rate is 50¢. This budget includes significant inflation of fuel costs for all programs. HESD Per Diem rates of $75 per night lodging and $25 per day meals remains unchanged since July 1994.

 

This budget identifies facility and vehicle costs by location: (1) 779 West Fillmore, (2) 655 West Fillmore, and (3) #25 Fairview Heights.

 

HESD is well known for low staff turnover and frugal fiscal management. With this foundation I am confident that the coming year will provide continued excellent services to all our students…both preschool and K-12 students…in Harney County. I am very proud of the employees of the HESD and the Board of Directors for embracing change and “making the difference!”

 

Respectively Submitted,

 

Dennis B. Mills, Superintendent

Harney Education Service District Region XVII