Apr 2, 2002 By Patty Shultz 3 min read

CONNELLSVILLE – Very few ideas were offered as to how to slash the multi-million dollar deficit facing the Connellsville Area School District as board members took their first look at the upcoming budget. District business manager William Harper told those attending Monday’s work session that the $3.7 million shortfall was attributed to lower state subsidies and higher insurance fees and retirement contributions, but where to make cuts to balance the spending plan would be the final decision of the board.

“Historically, we’ve had anywhere from a $1.5 million to a $2.3 million deficit that we needed to balance and we worked it out without a tax increase,” Harper said. “This year, however, it may be more difficult.”

The district, said Harper is facing a nearly 400 percent increase in the amount of money it has to contribute to retirement funds for past employees.

In addition to legislative action to boost the pensions by 25 percent, poorly performing investments have necessitated contribution rates to be increased from 1.09 percent to 5.64 percent. The new rates will translate into an additional $600,000 pay out by the district.

The district preliminary budget also indicates a substantial hike in overall insurance costs including a $96,000 rise in workmen’s compensation costs.

The deficit could be trimmed somewhat if some of the district staff would opt to retire at the end of the school year, said Harper.

Of the 48 eligible for regular retirement, four are administrators, 30 are teachers and the remaining 14 are listed as support staff. An additional 36 employees are eligible for early retirement.

Harper estimates a $30,000 annual saving for each teacher that opts to retire.

None of the eligible retirees have submitted a letter to the administration noting their intention to leave their teaching or administrative position at the end of the year.

Nearly 90 percent of the $53.6 million budget is earmarked for instructional purposes.

District superintendent Gerald Browell said the steep deficit was going to be difficult to overcome and noted the administration would have to look at not replacing departing staff members or program cuts as measures to be considered for trimming the amount.

“We’re certainly going to have to brainstorm,” he said.

Harper, meanwhile, said he is hoping the state legislators follow through with their promise to earmark the funding to education that has been allocated in the spending plan devised by Gov. Mark S. Schweiker.

In the current state budget being reviewed by the general assembly, the district will see a one-percent increase in its education subsidy – down three-percent from last year.

“It’s going to be tough if they don’t do something,” said Harper.

A tentative budget must be approved by the board by May 31 with a final spending plan sent to the state by June 30.