ASD Fund Balance Eliminates Need for Tax Increase
ASD Business Affairs Director Sam Kirk said he is not calling for a tax increase to offset expenses in the 2016-17 school year.
by Jonathan Weaver
Depending on final State aid figures, Armstrong School District taxpayers will not pay more millage for a second consecutive year.
During a budget workshop with Superintendent Chris DeVivo, Acting Coordinator of 7-12 Curriculum, Instruction and Assessment Dr. James Gaggini and a majority of elected school board directors, Business Affairs Director Sam Kirk gave school officials 2016-17 fiscal year projections.
“This is going to be kind-of a moving target moving forward – we still don’t know what we’re going to get for (the) 2015-16 school year,” Kirk said. “The governor chose not to sign (the fiscal code), which means it automatically became law. I do know we’re going to get additional Basic Education and Ready to Learn funds in the coming year beyond what we had budgeted – probably in the neighborhood of $200,000 – and there is talks about funding PlanCon, but I still don’t think it will come by June 30.
“But, where we’re at, what we think we’re going to get and the utilization of some of the fund balance, we’re currently not proposing a tax increase.”
However, Kirk cautioned school directors to be cognizant of the fund balance– which decreased by $1.8 million during the 2014-15 school year.
With $2.3 million needed to offset expenses before June 30, the fund balance will begin at $4.4 million July 1 and current projections include school personnel utilizing the fund balance again at this time next year.
“I don’t like the trend we’re currently on. It’s gone down the past two (fiscal years) – we did use $1.8 million last year, I do anticipate us using some this year,” Kirk said. “We’re going to continue to try to reduce expenses and hope that additional revenue comes in. If it gets down to $3.3 million at the end of next year, to me, that’s too low.”
Kirk said he would be more comfortable with the fund balance upwards of $5 million.
The district is projected to spend $93.8 million starting July 1, but only receive $92.6 million – paying the remainder through the $6.7 million fund balance.
Department leaders began budgetary procedures in October.
Next year’s budget represents a $351,000 increase in spending while also a $1.8 million increase in revenue.
Notable expenditure increases include retirement rate increases, debt payment increases and increased tuition at Lenape Tech in Manor Township.
To account for increased spending, Kirk said all department discretionary budgets and athletic budgets are frozen except for a $200,000 budget increase to address technology needs.
“I have to give everyone in the district a lot of credit because there was not a lot of unreasonable requests (in 2015-16),” Kirk said.
Kirk said instructors did not spend this year because of the state budget crisis, but want to allow for emergency repairs.
“This is a tough year to cut spending after what happened in January,” DeVivo said.
Administrators will also save about $500,000 in transportation expenses by switching to all-day kindergarten, about $800,000 via retirements and a new teacher contract and $140,000 by eliminating an administrative office employee.
“We’ve been looking at where we could realign some positions – just things that weren’t essential,” Gaggini said. “Some of our enrollments at some of our schools are dropping down, so by realigning staff, there are no furloughs.”
Armstrong School District’s enrollment is expected to drop by about 70 students before this Fall – with most of the decreases at Elderton Elementary, Lenape Elementary and West Shamokin Junior-Senior High.
Gaggini said he thinks all-day kindergarten classes will also reduce growing special education costs since children are learning longer than two hours per day.
Of the projected expenditures, ASD will spend the most – about $38.9 million - on salaries and wages, followed by employee benefits and tuition travel transportation.
School Board President Joseph Close applauded Kirk for his efforts the past two fiscal years despite problems with State reimbursement and aid.
“The budgeting process is getting better. Our financial department, along with our business manager, has made great gains. Had the State continued to make contributions like they used to do, I think we’d be in much-better shape than we are now,” Close said. “It’s like most other districts – most of the problems we face are inflicted by the State and we’re left to try and pick up the pieces.
“(Kirk) does a great job with it.”
School board directors will vote to adopt the preliminary budget May 9.
Seven of the nine school district board directors attended last night’s budget workshop in West Hills Primary School’s library.
Armstrong School District | jweaver April 27, 2016
By sickofpayingforit, April 27, 2016 @ 8:59 AM
Actually a lot of our problems are spending vs. taking money in, no? What else affects a budget? If you need more money, two choices. Raise more money or make cuts somewhere to make up the difference. I vote for the latter……………..
Economics 101. Maybe we should have the people teaching economics to our kids go to a meeting and give some workshops.
By ktown_kid, April 27, 2016 @ 4:57 PM
I wonder how much Sam Kirk makes a year? How about we cut some teachers now that the school has consolidated? Why did you buy astro turf for the baseball and soccer fields? The list of moronic purchases can go on and on!! You screwed over Rosebud on the football stadium which would of been fully paid for or maybe the Snyders whined too much. That won’t happen now, Rosebud is barely afloat now. Kittanning Township elementary got sold to CWM for next to nothing on an inside buy. Everything this district does is a joke. Every taxpayer should stop paying their school tax!!
By jorn jensen, April 28, 2016 @ 7:56 AM
Actually, ktown_kid, it is our fault that we have the school board that we have. We need strapped taxpayers with common sense to step up for these positions, when they come available, in order to change the course.
You won’t even get a public answer for why there have been no layoffs as a gain from the consolidation. You’ll get no public answer for why they have retained 4 principals while hiring a superintendent at $167k and and assistant superintendent at $133k, while not placing any of the 4 retained principals in either of those positions. You’ll get nothing from this board on that. But you’ll get Astro Turf on sports fields that we couldn’t afford and then be told that we may not continue 10th grade 1/2 day Lenape Tech participation due to budget constraints.
And people just go about their daily routine.
Personally, I think an audit is in order for this district.
By jorn jensen, April 28, 2016 @ 7:58 AM
ktown_kid - If you stop paying your property tax, you can buy it back at the sheriff sale.
By wonderwhy, April 28, 2016 @ 8:02 AM
How many people who live and work in the ASD make $80,000 for nine months work? The teachers do. How can we keep getting taxed like this to pay for their high salaries and benefits when there are a lack of good jobs in this area. We have senior citizens on fixed incomes and a lot of people on Welfare. I think the subject of salaries needs addressed. If we can’t lower the salary of tenured teachers we need to start with a lower starting salary. The teachers in Freeport, Karns City, Redbank, etc. all make less than the ASD teachers.
By RESHSW, April 28, 2016 @ 11:44 AM
CWM did not buy Kittanning Twp School. My friend did. If you need to know who, visit our Armstrong County Court House and do a deed search.
By jerry6, April 28, 2016 @ 6:34 PM
ktownkid: I don’t know if this is who you are talking about that bought the Kittanning Twp. school but Tim Foust bought the school for $80,000 and runs his construction business out of there.
By Rainbow Rider, April 29, 2016 @ 12:54 AM
Didn’t even read this article because the only reason they aren’t raising is because of the recent waste on Astroturf and other things and they know tax payers wouldn’t stand for it ‘right now’. Wait’ll next year!
😉
By jorn jensen, April 29, 2016 @ 8:52 AM
Headline in the Trib - New Kensington-Arnold Board Proposes 21 Furloughs. The board cited declining enrollment and the consolidation project that closed two schools.
The New Kensington-Arnold school board needs to get with the ASD school board to learn where to find the money trees. Maybe, in exchange, our board can learn how to manage in a decline.
By ktown_kid, April 29, 2016 @ 9:19 AM
So I made a mistake, either way this school district is running everyone dry with their BS! Now ad the county’s overspending and see what you get. This is armstrong county where nobody can afford to live, most people are on welfare and there are more people dealing drugs than people with decent wages. The industrial park was a bust. We drove IUP out of town and put them in the industrial park. If ASD was smart they would try to bring in a college or some type of tech school to buy or lease our vacant buildings. I know Jerry Shutter wants to spend a lot of money on a study that anyone with common sense can give you ideas. These are the clowns stealing our money!!