Budget concerns fueled Reynolds super’s leave

Shrinking budget surplus, inability to meet academic goals led to Kneisler’s departure

By Rob Cullivan

The Gresham Outlook, Aug 29, 2008, Updated Oct 30, 2009 (6 Reader comments)

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The Reynolds School Board will create an independent financial advisory committee in the wake of concern over financial problems that arose during Superintendent Terry Kneisler’s tenure.

The board placed Kneisler on paid administrative leave Aug. 23, following his latest performance evaluation. In subsequent statements, the board — without specifically mentioning Kneisler — has outlined concerns over problems that arose in the last year.

In a meeting Aug. 28 at Fairview City Hall, board and school officials noted the district did not meet its financial and academic goals for 2007-08 — goals board members said Kneisler agreed were obtainable.

The board also voted unanimously to create the advisory committee, made up of financially astute community volunteers, according to John Nelsen, board chairman.

“They will make sure there is simplicity, transparency, accountability and good stewardship in the budget process,” Nelsen said.

The board will take further action on the finance committee at its Wednesday, Sept. 10, meeting.

No further action has been taken regarding Kneisler, who did not respond to a request for comment. The district is currently negotiating with Kneisler’s counsel over his contract, Nelsen added.

Budget crisis

Last year, the district made “fiscal solvency” one of its goals for the school year, aiming for a surplus by year’s end that would amount to 5 percent of the district’s budget. However, by June, the district found it was embroiled in a budget crisis, according to Chuck Rhoads, executive director of business services.

The district readjusted its projected budget surplus for 2008-09 from $7.45 million to $3.3 million, which amounted to less than 5 percent of its proposed $100 million budget. That surplus is now projected to dip down to slightly more than $42,000, as the surplus is used to cover such items as salary and benefit increases, he said.

Such a low surplus leaves the district vulnerable to any financial challenges that might arise, ranging from increased fuel costs to possible drops in enrollment, resulting in less state funding, Rhoads said. The district plans to handle the decrease in projected surplus by not replacing some positions vacated through retirement or resignation, Rhoads added.

During the meeting, Nelsen asked Rhoads if his office had produced a plan during the June crisis to deal with the possibility the district might go into the red in 2008-09. Rhoads responded that his office had.

“But that argument didn’t win the day,” Nelsen said.

“No sir,” Rhoads replied.

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