Connellsville
Team effort leaves school board with budget surplus CONNELLSVILLE – A collaborative effort between the Connellsville Area School District administration and personnel have aided in the reduction of expenses for the upcoming year and have allowed for a balanced budget, according to figures presented during a Wednesday budget session by the district business manager.
Since approving a tentative budget, the district slashed more than $2.1 million from the 2010-2011 spending plan that is expected to be approved at a June 30 special meeting.
The cuts allow for a budget surplus of $546,200 over the $66.68 million in expenses for the upcoming year.
While the numbers indicate a tax increase will not be necessary to balance the budget, the board was not willing to divulge whether it will add to the current 12.6-mill tax rate.
Business manager Eugene Cunningham advised the board that the June 30 agenda would include several taxing options for consideration.
The tentative budget approved in May included a 0.5418-mill increase that would net the district an additional $546,155 in revenue, nearly the same amount as the current surplus.
“It is amazing that the district could cut that much money,” said board vice president Jon Detwiler following the meeting.
“It took everyone working together.”
Detwiler declined comment on how he would vote next week concerning a tax increase.
The cuts, meanwhile, stem from the retirement of nearly 30 teachers and the hiring of a minimal number of replacements, said Cunningham.
Also, in the tentative budget Cunningham said that he had anticipated a 12 percent increase in health insurance costs.
However, the amount increased by 8 percent, saving the district more than $2.2 million.
The district also assumed a special education program formerly overseen by the Intermediate Unit that netted a savings.
Other savings to the budget were the result of the district joining other consortiums to reduce natural gas and electrical costs, said Cunningham.
The final budget showed a slight increase in local tax revenue over the estimated income in the tentative spending plan, along with added subsidies from the state and federal levels.
However, Cunningham cautioned the board that more than $3 million in federal stimulus money will aid the state in meeting its education budget this year to the district and it is unlikely that a similar circumstance will take place next year.
“The pot of money will not be there next year,” he said.
Cunningham advised the board that the renovation of the high school, an increase in contributions to the state pension retirement fund and anticipated decrease next year in the tax rate index might impact expenditures next year.
Bids for the $63 million renovation project are to be opened in two weeks.
In addition to the higher contribution rate to the retirement fund, the tax index that allows a school board to raise taxes to a certain level without a referendum is likely to decrease from 4.3 percent to 1.5, said Cunningham.
Any or all of the circumstances could negatively impact the 2011-2012 budget, said Cunningham.
He recommended that the board designate a minimum of $2 million of the $9 million fund balance to a retirement fund account in anticipation of escalating contribution rates.
The board did not take action.
Prior to the budget session, the board conducted a brief voting meeting to recall the 20 teachers it had furloughed in May and to hire Brent Rockwell, Autumn Kosanko and Emily Yoder as special education teachers.
Also the board voted to end the temporary professional contract with Nichole Eicher.
In other action, the board hired Shelly Hann as the senior high school FBLA sponsor at a salary of $999 and newspaper advisor at a salary of $1,845, and Amanda Gorecki as Junior High East student council sponsor at a salary of $1,688.