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www.portorchardindependent.com
Friday, June 21, 2013 • Port Orchard Independent
SKSD waiting on state, makes plans to meet payroll By DANNIE OLIVEAUX Editor
The State Legislature was called back into extra special 30-day session July 12 and school districts across the state are evaluating their current financial status. Legislators have 15 days to finalize a budget before the beginning of new two-year budget cycle. If no budget is approved by June 30, school districts will likely be forced to lay off employees. During a June 13 meeting, South Kitsap School District officials discussed actions the district would need to take in case of a shutdown. Interim Superintendent Bev Cheney told the board if the Legislature doesn’t pass a budget, SKSD may not be able to meet payroll in July. Cheney told the board a public records request was made of the Office of
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the attic which was chared with smoke. Powers reported the
Superintendent of Public Instruction for the names of districts who do not have bond capital funding to use to fill in a gap in state distributions. SKSD is one of 115 districts who would need to apply for a line of credit to pay employees. “Unlike other neighboring districts in the county that will not be able to meet payroll as well; however, unlike them we do not have any bond or capital funds,” said Cheney. She said SKSD would need to borrow money if the State Legislature doesn’t pass a budget in order to make July’s payroll. The board gave Cheney approval to direct the district’s chief financial officer, Sandy Rotella, to move ahead with plans if SKSD needs to borrow money. Rotella would work with the Olympic Education
Service District on securing a loan or line of credit. The district could look at borrowing money for the next two months which could be between $3 to $4 million. SKSD will get some money from the state for May and June. “Our operating expenses are more than $7 million a month,” Cheney said. She said the state doesn’t allocate its funds to districts in equal amounts. “We would see the highest amounts (from the state) in the July and August timeframe because the state will not give as much to districts when they are collecting property taxes,” she explained. Cheney said SKSD has estimated $3 million, but $6 million is need for payroll. “We only have about a $1 million in capital and there is no other place to get it,”
she said. Cheney also recommended to the board that the district put a hiring freeze until SKSD finds out how much funding will be coming from the state. Board member Greg Wall asked if the hiring freeze would affect employees who were recalled after the RIF (Reduction In Force) notice. Cheney said some employees could be affected by the hiring freeze. “This issue with the government possibly shutting down or us having to borrow money, this is a total different area than we have ever been before,” Cheney said. “We need to be able to budget for stability in times of financial fluctuation, or whatever you want to call it.” Cheney suggested they work with Dr. Michelle Reid — the incoming superintendent — on a short and long-
home suffered minimal fire damage, but there was significant smoke damage to the structure. The house was approximately 1,500 square feet, and valued at $250,000.
There was approximately $25,000 in damage to the structure, and significant smoke damage to the home owners personal contents, according to Powers.
SKSD announces free summer lunch program dates South Kitsap School District’s free summer lunch program continues to serve kids this summer. Free lunch will be served at East Port Orchard, Orchard Heights and Sidney Glen Elementary Schools through Aug. 16 — Monday through Friday (excluding July 4 and 5). Lunch will be served from 11:30 a.m. to 12:30 p.m. and fun activities will follow from
term budget plan focused around SKSD’s beliefs and values, but also have some safeguards to maintain stableness in times of economic fluctuation. Cheney said during her final weeks she’ll focus on the basic foundation of the overall plans which will be handed off to Reid to develop a 30- to 90-day plan and eventually a three- to fiveyear plan of budgeting and planning processes. She told the board it needs to look at the putting reserves as high as 7 percent because it takes about $7 million a month to operate the school district. “We need to make sure our employees are paid,” Cheney said. She said until the state Legislature can create a budget, SKSD needs to post its budget by July 10. Board member Kathryn
12-1 p.m. Parents are encouraged to stay and play with their children for the activity hour. Each Wednesday, a sack lunch will also be provided to children at the Port Orchard Marina Park gazebo, adjacent to the Kitsap Regional Library from 11:30-11:45 a.m. until Aug. 14. From July 15-26 (Monday through Thursday) free sack lunches will also be served
Simpson said she wants the district to work on meeting July’s payroll on its own, but secure a loan for a twomonth pay period if needed. The board will later vote on a resolution concerning authorization to borrow money, if needed. On June 10, Gov. Jay Inslee called another special session of the Legislature to finalize a state budget. “If they (Legislature) haven’t figured this out by Sept. 1, I don’t think it’s prudent to start school,” Simpson noted. “We would be accruing payroll costs for next year with no budget. We have an obligation to every teacher and classified staff that worked through this school year, and that includes a July and August pay check. I want us to go out and get money to meet our obligations.” The next school board meeting is July 2.
at Van Zee Park from 12:1512:30 p.m. The Boy Scouts will be holding their summer camp at the same location. Free lunch is possible due to the district’s participation in the federally funded Summer Food Program that offers free lunches to children 18 years of age and under. The sites will offer meals to any child 18 and under.
Fathoms O’ Fun Summer Festival June 28th - July 4th
Dont Miss It
UP to
Columbia Bank Sponsors the Fathoms O’ Fun 46th Grand Parade Saturday, June 29th - 6pm
$250
cASH BAcK
Bay Street - Downtown Port Orchard
Fathoms Parade Day Activities Loan Amount
Cash Back
$25,000 +
$250
$20,000 - $24,999.99
$200
$15,000 - $19,999.99
$150
$10,000 - $14,999.99
$100
12pm.........Fathoms presents the Annual Frog Jump and Snake Races - Children bring your own critters! Watch Fathoms Royalty kiss a frog! Kitsap Bank Downtown 9am-9pm...Summer Festival Craft & Vendor Show continues on the Waterfront. Crafts, Food, Children’s Activities
Wave Broadband Sponsors the Fathoms Annual Grand Fireworks Show July 4th at 10:30pm on Sinclair Inlet View from Port Orchard, Bremerton Concerts at the Gazebo 12pm-10:30pm
Fathoms Summer Festival Craft & Vendor Show June 28th, 29th & 30th Port Orchard Waterfront
Concert at the Gazebo Friday 6:30pm Farmers Market Saturday 9am-3pm Ponies and Children’s Activities all weekend!
Hotfoot 5K Races Presented by SK Fire & Rescue Volunteers Sunday, June 30th - 9am at SK Regional Park
Concerts by the Bay
June 6th through September 2nd Weekly 6:30pm at the waterfront Gazebo
Information at www.fathomsofun.org 360.871.5740, 360.876.3505