A Message from H.E.R.O.
Does the Elderton Attendance Area (EAA) Tax Base pay for the operation of its school?
Financial information provided by the Armstrong School District (ASD) in the 2008-2009 Revenue and General Fund Expenditure Reports clearly shows it does. The EAA is comprised of Elderton Borough, and Kittanning, Plumcreek and South Bend townships
Quoting from the 2008-2009 Revenue Report:
EAA’s Total Revenue (Local and the PA State) $12,344,612
Quoting 2008-2009 General Fund Expenditure Report
EAA’s Expenditures were: $ 7, 782,046
(To operate a student population of 816 students)
Revenue Income minus Operating expenses $ 4,562,566
ASD then applied about 15% of the ADD costs to EAA of $ 5,010,215++
++ A review of the 2007-2008 and 2008-2009 fiscal years shows that the ADD increased by $9,344,270 in one year’s time. Dr. Kerr confirmed that part of this increase was the Lenape Elementary debt payment of $3.4 million from the Fund Balance by the previous School Board. This one year uptick in ADD produced negative debt contributions in Ford City, West Shamokin and Elderton Attendance Areas. This payment distorted the financial picture of the component areas of ASD. Prior to this uptick, all ASD Attendance Area’s consistently met their pro-rated share of the debt except for West Shamokin.
Effect of the Lenape Payment on EAA’s Financial Picture
| EAA’s 2007-2008 ADD portion was: | $3,713,564 |
| As compared to 2008-2009 | $5,010,215 |
| EAA’S portion of the one year increase in ADD | $1,296,651 |
The ADD is any additional district costs that are accumulated and distributed to the individual schools by the percentage of students that the school is educating. The ADD includes Debt and Interest Payments for school construction and renovations.
Quoting information from the Current ASD Administration dated August 5, 2010, the EAA has been paying a prorated share of The Debt Reduction and Sinking Fund Expenditure. In the Past Five School Years, EAA paid a total of $2,019,803 toward debt reduction while having NO DEBT* on EAA buildings. (* Letter from Dale Kirsch, former Business Manager, CC: Dr. Kerr)
EAA paid 14.95% of the Debt Reduction over that 5-year period against an outstanding Bond Issue of $57,500,000 plus interest for improvements to buildings outside Elderton Attendance Area. During that 5-year Period, the Outstanding Bond Debt was reduced by $17,486,942. ASD paid $13,394,427 and the State of Pennsylvania contributed $4,092,515.
Elderton Attendance Area’s payments toward Debt Reduction Detail
| School Year | % assigned to EEA | $ EEA paid for debt reduction |
| 2004-2005 | 14.90 | $336,928 |
| 2005-2006 | 14.79 | $342,923 |
| 2006-2007 | 14.83 | $434,416 |
| 2007-2008 | 14.90 | $489,150 |
| 2008-2009 | 15.33 | $416,386 |
| Total EAA Debt Paid | $2,019,803 | |
| Average % over 5-yr | 14.95 |
Note that EAA % of district students was increasing!
The Debt Service Report of 2008-2009 indicates an outstanding debt of $57,500, 000. This outstanding debt can be further broken down to:
Debt by Building
| Lenape Elementary - Ford City Area | $14,600,000 |
| West Hills Primary – Kittanning Area | $16,200,000 |
| West Hills Intermediate – Kittanning Area | $ 8,500,000 |
| West Shamokin Jr/Sr High – WS Area | $18,200,000 |
The Current Administration shows that EAA was saddled with about 15.33% of the Actual 2008-2009 Debt Payment amounting to $416,386. EAA has been paying for projects located in the other ASD attendance areas for years and receiving no renovations to our own buildings.
In response to the State required questionnaire for EAA’s secession petition, ASD provided the following information to Apollo Ridge School District:
ASD Info to Apollo Ridge
| EAA’s Estimated Revenue | $10,905,499 |
| EAA’s Estimated Expenditures | $10,755,002 |
You will note that the estimated Revenue and Expenses supplied to Apollo Ridge fall well below the actual numbers listed in our first example distorting the financial picture to Apollo Ridge. The EAA has not been a financial drain on the ASD as has been postulated.
Yes, Elderton Attendance Area does pay for its own school – plus contributes to the renovation of other district schools.
H.E.R.O., PAC
Research by Gerald Altmire
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By DrDeer, August 27, 2010 @ 2:09 PM
Little Jimmy is at it again.
By GonzalezRoslyn, August 27, 2010 @ 5:49 PM
Some time before, I did need to buy a building for my corporation but I did not earn enough money and couldn’t buy anything. Thank heaven my colleague adviced to take the credit loans from banks. So, I did that and was happy with my college loan.
By rudytuesday, August 27, 2010 @ 9:38 PM
For the love of GOD, Mr. Altmire, ADD does NOT stand for anything, it stands for the word add, which means addition. You keep calling the Add Prorated amount on the financials A.D.D. It means ADD the prorated amount to the other expenses. You have been given a list of what the prorated amount consists of by two people.
The biggest flaw in your figures is that WITHOUT STATE FUNDING YOU ARE NOT SUPPORTING YOUR SCHOOL! Yes I am shouting, because you just don’t seem to get it!! WITHOUT STATE FUNDING YOU ARE NOT SUPPORTING YOUR SCHOOL!!
By Adam Scaife, August 28, 2010 @ 1:48 AM
The above research and math is interesting. Its bad, but it is interestingly bad. It is using “Total Revenue” vs “Actual Expenditure” information. If you are going to use “Total Revenue” then you should also be using “Total Expenditure” in order to make your point. I do applaud you for not stating that you were using “total expenditure” as that would be very misleading to those reading this.
As Reported by the ARMSTRONG SCHOOL DISTRICT for the 2006-2007 School Year (This information does NOT include DEBT SERVICE nor AVTS Tuition so please do not deduct for something that is not included in this information.) The ADD Prorated information IS included for each attendance area below.
Elderton Jr/Sr HS Attendance Area
Jr/Sr. HS Enrollment: 351 Students
Cost per Student: $ 14,647.00
This is an additional $1,346.00 - $2,612.00
(9% - 17%) MORE PER STUDENT than every other school.
Jr/Sr HS Expenditure: $ 5,141,080.00
JR/SR HS Student to Teacher Ratio:
351 Students / 39.5 Teachers
8.88 Students per Teacher
26% - 55% More teachers per student than every other Jr/Sr HS
Ttl Attendance Area Elderton Expenditures: $11,812,159.00
Ttl Attendance Area Elderton Revenues: $11,597,061.00
Deficit: $ 215,098.00
Actl Expenditures - $7,796,039.00 or
$7,271,350.00
(w/o debt svc & AVTS Tuition)
Actl Revenues - $5,027,760.00 (incl. pwr plnts.)
DEFICIT: $2,243,590.00
Which way would you like to look at it, “Actuals” or “Totals?” But you shouldnt use one way for the revenue and the other way for the expenditure. (Perhaps we should consult an accounting firm? Lets spend some money.)
But when you use the “TOTAL Revenue” and the “Actual Expenditure?” Amazingly you show a surplus of: $4,325,711.00 It looks real pretty and is a very nice number. Interesting math though isn’t it?
Elderton Jr/Sr High School may not have received renovations. This is inequitable. But they have received $470,000.00 (min) per year(based off of 350 students attending). Or should we make the cost per student comparison between Elderton attendance area JR/SR High School vs Ford City Jr/Sr High School? That number is $914,200.00? Which number should we use for this comparison? If we use an average of the other Jr/Sr High School costs per student the number is still going to go up? (Ford City attendance area is getting hosed compared to Elderton Attendance area when you look at the math this way. But that’s OK, Dr. Solak is looking out for the best interests of his constituents. Or is he? Maybe for the past 20 years he is only looking out for a building and not for his constituents and his students.) Which inequitable situation do you want to look at? Ford City attendance area really should be looking at this and asking questions. You might not have gotten renovations, but you certainly received funding for the higher cost per student. Hmmmmm how many years should we go back and look at this so we can come up with a number?
What numbers should have been supplied to Apollo? the “Actuals” or the “Totals?” I dont think you want to give them the “Actuals.” What would your portion of state funding have been once you joined Apollo? What debt service would you have from Apollo once you joined Apollo? The ASD was pretty fair to EAA with the estimate they supplied.
The following is the same information for each of the other attendance areas. This is WITHOUT making any “adjustments” to have the data show a bias toward any specific area. I am using “Total Expenditures and Total Revenues” for each of the attendance areas to do this math. I am NOT using “Actual Expenditures and Total Revenues” for each of the attendance areas to do this math.
Ford City Jr/Sr HS Attendance Area
Enrollment: 784 Students
Cost per Student: $ 12,035.00
Jr/Sr HS Expenditure: $ 9,435,181.00
JR/SR HS Student to Teacher Ratio:
784 Students / 56.5 Teachers
13.87 Students per Teacher
Ttl Attendance Area Ford City Expenditures: $19,557,267.00
Ttl Attendance Area Ford City Revenues: $19,936,987.00
Surplus: $ 379,720.00
Kittanning Jr/Sr HS Attendance Area
Jr/Sr HS Enrollment: 1,042 Students
Cost per Student: $ 13,301.00
Jr/Sr HS Expenditure: $13,860,507.00
JR/SR HS Student to Teacher Ratio:
1042 Students / 92.58 Teachers
11.25 Students per Teacher
Ttl Attendance Area Kittanning Expenditures: $29,181,243.00
Ttl Attendance Area Kittanning Revenues: $31,029,562.00
Surplus: $ 1,848,319.00
West Shamokin Jr/Sr HS Attendance Area
Jr/Sr HS Enrollment: 650 Students
Cost per Student: $ 13,009.00
Jr/Sr HS Expenditure: $ 8,455,886.00
JR/SR HS Student to Teacher Ratio: 650 Students / 52.8 Teachers
12.31 Students per Teacher
Ttl Attendance Area West Shamokin Expenditures: $19,103,226.00
Ttl Attendance Area West Shamokin Revenues: $16,844,489.00
Deficit:$ 2,258,737.00
Actl Expenditures - $12,753,227.00
Actl Revenues - $ 6,459,585.00
Deficit - $ 6,295,642.00
But when we look at “Total Revenue vs Actual Expenditure” - SURPLUS $4,091,262.00 Now that is a GREAT NUMBER! Lets use it.
Kittanning your number using this methodology (Total Revenue vs Actual Expenditure) is $12.1M surplus. Ford City your number is $7.6M surplus. If only we could use such math and go to the banks.
I’ve said it before, and I will continue to say it because it is true. I’ve got absolutely nothing against the Elderton area or the people of Elderton or the people from any specific town or current attendance area. I am however, for the entire area and the entire school district. It is FISCALLY IRRESPONSIBLE for the entire Armstrong School District to reopen, let alone to renovate, a building that graduates 30 students per year. Worthington’s, Shannock’s, Dayton’s, and East Brady’s facilities were closed, due to low enrollment under very similar conditions. This board is making WRONG decisions for the entire district and sacrificing the good of the whole to pacify a very vocal few. If it was put to a referrendum vote to the property owners of the district, Elderton Jr/Sr High School would not be reopened and the building would be razed.
There is a cost associated with reopening the facility, the staff and the operational costs are not free. The money to reopen and restaff came from the district’s fund balance. The solicitor’s statement is unbelievable. Either he is obtuse or he believes that the people are all lemmings and will believe what ever comes out of his mouth. The Solicitor did make his statement with confidence. But a belch would have sounded more intelligent than the statement that he made. If Elderton Jr/Sr High School would not have been reopened, we would NOT have needed the staffing level and we would not be incurring the operational costs that we are now stuck with thanks to this irrsponsbible board majority.
Once more, Elderton Attendance area, if you truly believe that you cover your own expenditures with your revenues, please secede. This board will not stop you, nor will they block you. Perhaps Apollo or Indiana School Districts will want you since you have such a positive revenue stream compared to your expenditures.
By GingledorfDerlinini, August 28, 2010 @ 9:08 AM
Blah Blah Blah…
If Eldertonia is paying so much for the operation of the rest of the district, why did Apollo say ‘no gracias’?
When taxes go up and the number of people losing their homes increases, the HEROES will be to thank.
ANOTHER THOUGHT…
Remember the red STOP (Stop Taxing Our Properties) signs that sprung up a few years back? I think it is so ironic that many of the STOPPERS are now HEROES…
Do they not see the connection?????
Keep on keepin’ on!
By rfullerton, August 28, 2010 @ 9:16 AM
To make this really simple to understand…..look at this line in the editorial…
“Quoting from the 2008-2009 Revenue Report:
EAA’s Total Revenue (Local and the PA State) $12,344,612″
Where you see the PA State…means that the state gives you money. If you were self sufficient then the state would not give you money.
The STATE GIVES EHS Money so EHS is NOT self-sufficient! Stop twisting the figures to make it appear the way you want it to be. Try being honest with youselves at least.
By VerySpecialPerson, August 28, 2010 @ 2:37 PM
Amazing! HERO writes (and pays for) their article and Mr. Scaife comes in with his unpaid responses that leave a few things out (on purpose I am sure). He knows what they are and so do I. Good spin by both sides! Keep spinning. You will have everyone confused. Will the real ASD Business Manager please stand up? There are too many imposters in the room.
By rfullerton, August 28, 2010 @ 3:40 PM
Veryspecialperson if you know what the discrepancies are please do tell. I am not a math whiz by any means and am openingly interested and listening. I also find it very interesting that you answered to a blog post BEFORE it was posted( as has eldertonparent). I am assuming that you have administrative rights to the blogs before they are released or is there another viable explanation for that…stinky, stinky!
By phoenix, August 28, 2010 @ 3:50 PM
Thanks VerySpecialPerson….glad you point out the obvious. Now why don’t you point out the fact that ASD gets money from the state, which Elderton receives a share. Since the school district receives this money, it is not self sufficient. Does anyone honestly believe the state would give away money if it was not needed by the schools? And since the current ASD Business Manager is a puppet of Jimmy Solak and apparently Gary Matta (and both of those men could not add numbers up with a calculator, see Matta’s last stint as a business manager as evidence of that), the district really does not have just “one” business manager. Too many cooks in the kitchen if you ask me…
By Adam Scaife, August 28, 2010 @ 4:55 PM
@ VerySpecialPerson
As you state that you know what these few things are, please induldge me and educate the readership and reveal the few things you know to have been left out. Wade in…. Dont be so shy and use your real name instead of a pseudonym. Lets see your math and your spin on it. I like my spin and I am comfortable with it, just as I am sure that every HERO supporter likes and is comfortable with the spin provided by the paid for HERO editorial. Which would Mr. Brandenburg be more comfortable with if he was reporting to the state auditor general? Maybe he would like your spin on it and your numbers best?
If Hero’s spin and math is more accurate, EAA should seek consolidation with another district. If the HERO math is correct, Indiana or Apollo should be begging EAA to join them. The rest of the ASD attendance areas are not begging EAA to stay and this board wont stand in your way if you wish to secede.
By realisticone, August 28, 2010 @ 5:21 PM
Bravo Adam!!
And yes, the teacher need at staffing for EHS was 41.5 faculty. Now, that number was stated as only 27-28 hires so I think Dr. Solak in his 45 minute ‘rant to the public’ or ‘let me re-justify the unjustifiable’ at KHS for the Non-public who weren’t there…what happens…when faculty retire - the ASD can replace that position or ‘attrition’ it away…for example - KHS lost 2 math and 1 Econ. teacher. We didn’t get another econ. teacher so the social studies faculty already teaching 4 grades of multi level required and elective courses had to be forced to pick up the extra classes and enlarge the student to teacher ratio. So while Elderton was staffed with 27+/- teachers (salary) the rest of the district lost 14 retirement positions which were NOT filled…driving up the student - teacher ratio yet again. How does that add to the Adam Scaife quoted ratios in 2010-2011.
Smoke and Mirrors or “Can I have another drink of Koolaide (copyrighted) Pastor Jim Jones?”
By ASDpayer, August 28, 2010 @ 6:22 PM
It is disappointing the Kittanning Paper would print this editorial/story/misinformation. The writer simply doesn’t know how to read a school budget. But then the Board had to hire a consultant to help them read a balance sheet. Adam Scaife’s comments are to the point. Come on HERO get honest, your school is a drain.
By DANBOY, August 28, 2010 @ 9:39 PM
Mr. Altmire:
You lost me at uptick.
Seriously could you do me up one of those charts to show the actual start up costs of EHS.I would like to know whose postulation is closer,Mr.Rizzo’s at $750 million or the Dr. Director’s at break even.
By Jan, August 29, 2010 @ 8:17 AM
Very Special Person:
One could say you are a school board member or maybe even a member of HERO, but the bottom line is this. After attending the school board meeting last Monday, it is apparent that NO ONE knows the true cost of anything regarding the re-opening of EHS.There were so many numbers flying around that it was hard to keep up with it all- and that, in my mind is a disturbing fact! Again, going back to basic economics of running a business- one does not spend money when they aren’t sure what the costs will be!
By RizzoSports, August 29, 2010 @ 6:46 PM
It’s a pointless argument, it doesn’t matter if the EAA generates 3x the expenses. It’s still a waste of money for a school with so few students in they 2010 in school with 3 other high schools.
Everyone is right for pointing out that if EAA is such a cash cow, they should leave and keep all of their money. It would be the smart move for any attendance area to leave this crazy district.