Aug 20, 2009 3 min read

The Albert Gallatin Area School Board is considering borrowing money to make up for possible funding shortfalls as legislators continue to negotiate a budget agreement in Harrisburg. Losses could be experienced due to missed state subsidy payments and the state not releasing federal stimulus dollars as part of the American Recovery and Reinvestment Act. According to Superintendent Walter Vicinelly, a small percentage of the stimulus funds were to be used to fund payroll and other basic necessities for the school district. The tax anticipation loan could be used, in part, to fund those areas. Taking out the loan depends on how the budget process goes, he said at the school board meeting Wednesday.

Districts missed their first state subsidy payment in July due to the budget impasse and are at risk of not receiving the second due at the end of this month as well.

Vicinelly said that if a state budget is not approved soon, the board could call a special meeting to take action regarding a loan, money which the district has not had to borrow for as long as Vicinelly has been superintendent.

Vicinelly is concerned about how the gap in education funding could affect the district in two years if Senate Bill 850 is approved as currently proposed.

Senate Republicans have proposed, through Senate Bill 850, to use federal stimulus dollars to make up for an decrease in basic education funding provided by the state.

Vicinelly said if Senate Bill 850 is adopted, small class sizes, which the district tries to maintain, and other areas of progress could be erased unless the school board would chose to raise property taxes to fill the funding gap.

In three years, he said, that stimulus money will dry up and by school year 2011-12, the district will return to a 2005 funding level, which means the district would receive $3 million less than what it is funded now.

“All the progress we’re making… we could go backward,” Vicinelly said, adding that the district makes every effort to monitor spending.

He said he would like to see a budget approved close to the one proposed by Gov. Ed Rendell.

Rendell proposed increasing school districts’ basic education subsidy to maintain the progress of a six-year plan formed after a costing-out study was conducted in 2007. The study showed that school districts were underfunded.

In a related matter, the board agreed to create four teaching positions in order to lower class size in two grade levels.

The board agreed to create and post a grade one position at Smithfield Elementary School and George J. Plava Elementary School as well as a grade three position at George J. Plava and A.L. Wilson Elementary School.

Vicinelly said the district “makes every effort” to maintain kindergarten through fifth-grade class size to 18 students or less. This year, some classes will have 16 students, others will have 22, but the number is within the anticipated average in those classes, he said.

The board also hired the following: Bethany Hubeaut as a social studies teacher at AG South Middle School; Ashley Brooks and Jennifer Phillips as developmental reading teachers at the high school; Jeremy Keefer as a physical education teacher at Masontown and George J. Plava elementary schools; and Valerie Maldovan as a special education teacher at A.L. Wilson.

The board accepted the resignation of family consumer science instructor Lindsey Smart, effective today, substitute custodian Scott Milliken, effective Aug. 10, and cafeteria employee Linda Vinch, effective Aug. 19.

The board scheduled its next regular meeting at 7 p.m. Sept. 16 in the high school cafeteria.