Newberg discovered a nearly $4 million shortfall just weeks ago
NEWBERG, Ore. (KOIN) — As the Newberg-Dundee School District races the clock to figure out their nearly $14 million two-year budget deficit, a critical budget meeting set for Monday night was canceled when the superintendent and the head of Human Resources could not attend.
That left parents frustrated with more questions than answers.
“It wasn’t till the end of May that the magnitude of the problem even sort of came to light,” parent Irene Dunlop told KOIN 6 News on Monday. “My perspective on the problem is that the superintendent and deputy superintendent and chief financial officer are all incompetent.”
On May 20, Jackie Olson, the executive director of the Oregon Association of School Business Officials, told the school board the district anticipated a negative fund balance topping $3.77 million, which was expected to grow if action wasn’t taken soon.
State leadership is stepping in to try and fix the district’s books, but so far estimates show the district will need to cut around $10 million from next year’s budget, too.
As the Newberg Graphic (a media partner with KOIN 6 News) reported, Heather Bixby, the district’s finance director, said that five accounts are over budget this year.
“We are overextended in the budgeted funds in multiple areas,” she said, adding that at the top of list is $1.36 million for programs for students with severe disabilities, $871,000 for instruction and $2.1 million for support services, which includes everything from staff development to vehicle maintenance.”
The growth in the cost of transportation services has impacted the district more than $1.5 million this year over last. Bixby explained that the increase came in part due to a wrong assumption on her part that didn’t account for the $1.3 million necessary to pay for the last two months of service, the Newberg Graphic reported.
“I shouldn’t have made that assumption,” she said during a special session held May 20. “I should have doublechecked that it was encumbered for the entire year.”
“Why are we having all these shortcomings?” said Newberg parent Carly Barnett. “Where’s the money? Why aren’t schools being taken care of?”
The Newberg School Board is considering various recommendations to correct their mistakes. Parents said they are now concerned about steep cuts, plus possible furlough days, which means unexpected cuts in teacher pay and last minute needs for childcare.
“It’s more than a 20% cut,” Dunlop said. “It’s huge.”
Barnett added it “just seems like the rug is getting pulled out from underneath teachers, staff, parents and students.”
The fiscal year wraps up at the end of June. Time to address this is of the essence.
School board members approached by KOIN 6 News Monday night declined an interview and said they were not in a position to talk because they don’t yet have all the facts.
The next budget meeting was moved to June 10.
KOIN 6 News will continue to follow this story.
Elise Haas
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