District passes budget, closes $1.4 million gap with admin positions reductions, delay of purchases & services

Education/Special board meeting
May 9, 2011

School Directors present: Susan Guthrie, Gary Friedlander, Virginia Pollard, Diane DiBonnaventuro, David Ebby (board president) Lyn Kugel (Vice President), Melissa Gilbert, Lisa Fair-Pliskin, Jerry Novick
Audience: About 12 people.
audience: about 20 (about half are recipients of ISC grants)

ISC Mini Grants
presented by Jenifer Bale Kushner

funded by the HSA's
awarded to 28 teachers this year, across all 10 schools

Supt McGinley (CM);cases where something starts as a mini grant and is subsequently expanded [into a district sponsored regular program]

Budget:

CM: Initial budget proposed in advance of the governor's budget. had anticipated 500k less in funding. needed to cover $1.4 million in cuts. Tonight's budget addresses the latest cuts.

Can take exceptions for costs that we are not in control of, to raise axes above the 1.4% - in our case special education and retirement funding.

Because school districts are mandated to do certain things

Next year's shortfall could be $5 million if all the exceptions go away.

Victor Orlando (VO):
tax raise for median household ($250k value) = +$185

Gary Friedlander (GF: ) How do we determine what we need to do before the state budget is passed?
VO: can open budget again and approve another budget
GF: what is state reduces ss reimburse from 50 to 15%.
GF: believes there's going to be action on ss very soon , based on what they've been told.
Diane (DD): It's more an accounting function, because if they don't cut as much as anticipated then we have extra money from state and won't have to cut as much
VO: But our budget assumes that social security reimb stays at 50%
Jerry Novick (JN): what happens if not al the cuts come through
VO:
JN: The blame we get from Harrisburg is a self-fulfilling prophecy. Mandates from state, pension funding not managed well, . Lucky to live in a district where people support public education, will continue to,
push for limitations on local tax have come in recent years. Future boards will have greater limitations.
Melissa Gilbert (MG): can you speak to where areas are that we think we will be able to make some cuts
CM: eliminate admin positions (assistant principal eg) other cuts in operations and technology - delay purchases and delay services. Good news is that tax collecting rates are exceeding projections, so hope to offset cuts.
DD: Q about soc sec subsidy:
Susan Guthrie (SG): one of the exceptions taken in past was grandfather debt, not taking this year. Wanted to clarify that we're not taking it because it's not available anymore. 2nd Q: what are hoops to reopen budget?
VO: personally never done it before but seen other districts do it.
CM: Board would approve a new budget. Options about what to do with surplus. Could rebate to people, or add to fund balance.
David Ebby (DE): those excess costs : we had been paying 4%, state wants 8%, then … eventually 21% is about $20 million for our district.
GF: part of this is Harrisburg's failure to address this 10 years ago
VO: in 01,02: in that year there was not contribution to pension liability. Since then many years with no appropriate contribution.
CM: in 2001 benefit was expanded. But recently state legislature changed the terms, for new employees.
DD: Every year our business manager brings this to our attention. Problem is that there was really not much we could do, even though anticipated.
Lyn Kugel (LK): is this a time we should be urging people to contact their legislature?
GF: last week was a presentation at west chester high school -
SG: there's an urgency behind this - will be decided soon- house will be debating act 1 exceptions tomorrow. other issues resolved by aery June. need to get involved now.
SG: can you talk about budget shortfalls prested at finance committee meeting?
CM: Projection given at finance committee meeting is that what gov has presented is final. Reluctant to say that it's worst case scenario. But it could be worse - future cuts in millions of $ would mean program cuts. Thinks that we've built programs and enhancements over the years that are meaningful. Would need to cut programs or ask public to vote on act 1 increases. Athletics, arts, languages, ethnology .. things not mandated by state
GF: If you want to see impact, look at Council Rock sd, had to eliminate 60 positions
CM: If you want to lookout long term underfunding look at Delaware - underfunded schools, people moved to PA
JN: impacts districts
Lisa Pliskin(LP): another alternative would be to increase class sizes. SB would have to consider.

Budget adopted

no speakers