School district looks to future of belt tightening
By REBECCA RANDALL
Staff Reporter
The Lake Oswego School District is tightening up and looking for revenue wherever it can.
At its Monday meeting, the district moved forward in implementing cost controls in hopes to save a few pennies in a budget that could be $4 million short in a worse-case scenario next school year. The school board also gave administration the authority to move forward to establish a construction excise tax, and it raised fees for full-day kindergarten.
Among some of the measures the district is pursuing are:
* Cost controls
The school district is tightening its belt with three cost controls (which were also implemented last year): 1) the central services of the district (human resources, maintenance, business services, etc.) will be limited to essential spending, 2) individual schools will be limited to purchases that support the instructional program and 3) any non-instructional position that is vacated will be evaluated to see if the position can either be reshaped to deliver service in a different way or filled with an existing staff member before hiring a new person to fill the position.
* Construction excise tax
The school board, which began discussion of the construction excise tax in September, anticipates implementing it in February. The first step in the process is for the district to enter into an intergovernmental agreement with the cities or counties that exist within the district’s boundaries. A draft version was available Monday night, and Superintendent Bill Korach and Finance Director Stuart Ketzler will now finalize the agreement with appropriate agencies.
The tax would apply to any residential and non-residential new development within the school district. According to law, the district would then be allowed to use the money on its own capital improvments.
The school district would seek a tax of $1 per square foot on residential construction and 50 cents per square foot on non-residential construction. For non-residential, the tax is limited to $25,000 per permit or structure, whichever is less.
The tax would be charged at the time a developer or property owner within the school district seeks a permit with either a city or county agency.
The school district must also bring the intergovernmental agreement to Clackamas County commissioners for their approval.
Legally, private schools, public entities, affordable residential housing, hospitals, religious facilities and agricultural buildings are exempt from the tax.
The school board plans on exploring additional exemptions, such as a Habitat for Humanity home or other unique circumstances.
* Full-day kindergarten rates
The school board voted to raise the fee for full-day kindergarten for the first time in three years. The fee will go up from $325 per month to $350 per month. There is also a $125 nonrefundable deposit, which will not increase.
The program operates on a cost-neutral basis.