What requirements must a board and district follow in making budget reductions?
Interestingly, there aren't any statutory requirements regarding how a district should make budget reductions following adoption of its budget. ORS Section 294.435 addresses this in subsection (6) (see below). The bottom line is that once the budget has been adopted, should the district find itself in a situation where revenues are less than anticipated, it is recommended that the board make the necessary reductions and modify appropriations and revenues/expenditures. It isn’t required by law and there isn’t a specific process for accomplishing this; however, the district should consider the public response to the reductions. Will the district be better served by involving the full budget committee in discussions and opening the discussions to the community or can the board move ahead with the reductions it believes are necessary without concern for the public response?
ORS 294.435(6) Nothing contained in this section shall preclude a governing body during the fiscal year or budget period by appropriate ordinance or resolution, after public hearing, from adjusting budgeted resources and reducing appropriations to reflect a decrease in available resources.