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Belle Vernon surviving budget crisis

By Jenny Susa 3 min read

BELLE VERNON – Although some Pennsylvania school districts are at risk of closing because the state has failed to pass a budget, the Belle Vernon Area School District’s Board of Directors and administration say that so far they are managing their budget without state funding. Superintendent Robert Nagy said that other sources of income for the district have increased this year, helping to offset the loss of more than $7 million in state subsidy.

“On the plus side our collection rate is higher than last year,” said Nagy.

Business manager Eileen Navish elaborated, saying that the real estate tax revenue has increased because of delinquent taxes being paid and more businesses in the area.

“After Sept. 11, the bottom fell out on our revenue, and we were not taking in as much as we had budgeted for,” said Navish. “Now we have delinquent real estate tax coming in, and taxes from more businesses in the area. As President Bush says, jobs are coming back. So our only downfall this year was that we missed two subsequent payments of state subsidy. Despite the fact that we don’t have basic subsidy coming in, the district is doing just fine.”

Nagy said that there has been word from Harrisburg that the state could possibly vote this week on the budget, and the district could receive the subsidy payments they have missed.

President Aaron Bialon also expressed his disappointment that the state is passing the budget so late, leaving the district with options that would only cost them money if the budget were not soon passed.

“In case the budget is not passed, the state has offered us the option of taking a loan,” said Bialon. “If we had to do that, we would pay them back interest because of something that was their fault.”

Director Dale Patterson appealed to the public to contact their state representatives and urge them to pass the budget before it is too late for many districts.

“The public was here in May, June and July of this year, and put a lot of pressure on the board,” said Patterson, referring to a time when a raise in school taxes was being discussed. “We hope you will put that same pressure on the state legislators, because sometimes we are powerless to act. We were to pass a budget by June 30 and they have still not passed a budget. I don’t hear the outcry from the local public that needs to be on the state legislators. We’re just the little people, but they like to let us take all the heat.”

In other financial matters, the board and administration received an award from the Association of Business Officials International for excellence in financial reporting. John Frombach, vice president for the organization, presented them with a certificate of excellence for their achievement. He said the award was the highest recognition for school district financial operations.

“Our organization promotes the highest standards in financial reporting, and only 14 other districts in Pennsylvania received this award,” said Frombach. “This is quite a recognition for the board. It requires a great degree of comprehension and detail to complete an annual financial report of this standard. Without Eileen Navish’s expertise and abilities this could not happen, but she also has the support of the superintendent, the board president and every member of this board. Without all of that, this could not be achieved.”

Navish said that because this recognition was received, the district will save on insurance costs, giving them more incentive to meet the same standards each year.

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