How State Prior Year Adjustments Actually Work!
I wanted to take a moment to address some concerns about faulty information that has been circulated in our community about State School Fund Prior Year Adjustments. For many of you who attend Board meetings you will recognize the term “The May Adjustment” and for you this will be old hat!
Each year in May the Oregon Department of Education provides something in their May payment to every District called the “Prior Year Adjustment”. The prior year adjustment has a nickname of “The May Adjustment”. The May adjustment is volatile and depends on a myriad of factors that are difficult to predict. Corbett has had May adjustments where we have lost more than $130,000 and we have experienced some years, like this year, when we will gain more than $230,000.
No matter what happens these dollars are added or subtracted to the district’s operating budget. They are always accounted for. In fact they are literally accounted for during our district’s independent audit that is required by law every year. These dollars are tracked like every single other dollar we receive from the state. Corbett School District has been awarded a “clean” audit every year for at least the last 10 years.
Rumors and allegations being circulated around the community that the prior year adjustments are some secret slush fund that is never budgeted for or accounted for are false. I am happy to be able to address these issues head on.
I am attaching a pdf that shows a seven year history of Corbett School District’s May adjustments. Also for comparison purposes the PDF also contains a detailed examination of the May 15th, 2013 May adjustment where we gained $54,634.50 based upon prior year adjustments and the May 15, 2009 adjustment where we lost $53,693.92.
Download May Adjustment PDF here:May Adjustment Documents