Item B: Youth/School-Based Services Local Option Levy

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the City provides several programs through limited-term grant funding, such as Project Rising Expectations, After-School and Community Education, Bethel and Churchill Teen Courts, and the Afro- Academic Cultural, Technological and Scientific Olympics (ACT-SO). These services, which total approximately $1.3 million per year, are funded with a combination of $600,000 from the current year levy, grant funding, and carry forward of levy funding from previous years. Details about these services currently paid for with levy and grant funds are included in Attachment A. Staff estimates there is sufficient funding under the current levy to continue planned services through the summer of 2007, but no funding available to continue through the end of FY08. In addition to the programs funded through the levy and limited-term grants, the Budget Committee added programs on a limited-term basis in the FY07 budget for youth programs. These programs included the Boys and Girls Club and Safe & Sound Youth Services, totaling $305,000 per year. Services provided from the City’s local option levy funds through the school districts include elementary physical education and music, counselors, librarians and nurses at all levels, and secondary extracurricular activities such as sports programs. Both the 4J and Bethel school districts have indicated that, given current financial assumptions, they have developed alternative strategies (primarily use of reserves) to fund these important programs through the next biennium without the City’s local option levy funding. Both districts received additional state funding and more property tax revenue than anticipated under their permanent tax rates. In addition, 4J has its own local option levy under the $5 school limit, and that levy has provided more funding than originally projected. The Bethel School District asked voters for approval of a local option levy to fund additional math teachers, more computers and more textbooks in the May 16 election. The measure received a majority vote, but the voter turnout did not meet the double-majority requirements of Measure 50, so the measure failed. District officials are considering whether to ask voters for a levy again in November, but no decision has been made yet. Options for the City’s Youth Local Option Levy Option 1 - Renew Current Levy: If the levy was renewed at the current rate ($0.86/$1,000) and the Urhausen decision was overturned, it would cost the typical taxpayer about $126 per year. Based on a strategy discussed with the school districts, the City of Eugene would receive 15% to implement youth services and the remainder would be split between the school districts based upon student membership. This strategy was intended to increase the City’s share of the levy, as well as keep the school districts close to the same funding level as under the current levy. The strategy had been discussed with the school districts last year, prior to the Urhausen decision. Staff projects the following revenues for each entity under this approach: Estimated Revenue from Renewal of Current Levy ($ in millions) FY08 FY09 FY10 FY11 Total 4J $5.7 $5.9 $6.2 $ 6.6 $24.5 Bethel $1.9 $2.0 $2.1 $ 2.2 $ 8.2 City of Eugene – 15% $1.3 $1.4 $1.5 $ 1.5 $ 5.8 Total $8.9 $9.3 $9.8 $10.3 $38.5 L:\CMO\2006 Council Agendas\M060626\S060626B.doc