Jun 11, 2008 By Patty Yauger 3 min read

CONNELLSVILLE – The Connellsville Area School Board financial committee chairman will request tonight that the district’s fund balance goes untouched and instead additional cuts be made to balance the 2008-09 operating budget. Board members will meet in their first of two public sessions to address the budget deficit that while reduced by $2 million, still remains with a nearly $1.5 million shortfall.

The tentative budget was introduced last month and showed revenues totaling $63.71 million and expenditures at $67.30 million.

Director Ed Zadylak said that neither raising taxes nor tapping the fund balance is options he will approve when the panel meets later this month to adopt the spending plan.

“I will recommend to my fellow board members that we direct the superintendent to make additional cuts to balance the budget and leave the $4 million fund balance intact,” he said.

Last year the board used a portion of the fund balance to equalize the revenue and expenditure figures.

Zadylak ties the deficit to escalating contractual obligations and rising health-care costs for the district employees in addition to declining federal revenue and a stagnate local economy.

The district does stand to receive a $3.3 million increase in state subsidies, according to Zadylak.

This year the district settled three contracts with employees and along with other in-place agreements, the payroll costs will increase by $1.4 million in the 2008-09 school year, while an additional $1.2 million will be paid out for medical benefits, said Zadylak.

“The negotiating team did not push to have the medical benefits bid out,” he said. “If we would have done that and awarded a contract to the lowest, most responsible bidder and gone with a $2,500 in-house deductible like most companies are doing we would have saved a little over $1 million.

“But we went with Highmark Insurance, and now we have to pay the piper.”

The 10 supporting municipalities in the district, too, said Zadylak, have seen very little economic stimulus with only 100 new construction permits issued within the past year.

“The same property owners continue to bear the cost of the school district because we don’t have enough economic activity,” he said.

Zadylak said that he would also request that district Superintendent James Duncan produce an employee furlough list that should be generated with the closure of Dunbar Township, South Side and Connellsville Township elementary schools.

“If you are going to shut down buildings, there should be less personnel,” said Zadylak. “Parents from these closing schools are going to expect some changes and rightfully so.”

He speculates that some staff members on the furlough list might be recalled to fill positions vacated by those opting to retire.

Approximately 20 are eligible to retire, but only nine have submitted letters to the administration.

Zadylak said that the board would need to take a “very serious” look at the budget figures to make the reductions necessary to balance the budget without using the fund balance.

“We have to spend the money we receive wisely,” he said. “I know there are enough changes that can be made in the day-to-day operations to cut costs.”

The non-voting meeting will be held at 7 p.m. in the high school cafeteria.