Preliminary School Budget “Estimate” Up-For-Vote in January
Armstrong School District Business Manager Sam Kirk said the preliminary budget school directors might approve next month - which includes a projected $3.5 million shortfall - should not immediately worry taxpayers.
by Jonathan Weaver
Because of the current State budget crunch, Armstrong School Directors might vote on a preliminary budget at their first regular meeting of the calendar year.
Business Manager Sam Kirk said the $97.5 million preliminary budget will be “a total estimate.”
“We’re just starting to get department budgets now, we don’t know what our healthcare rate decreases are, we did learn what the PSERS rate will be but that could be adjusted…after adopting a preliminary budget in January, that number will obviously change,” Kirk said.
School administrators are projecting $94 million in revenue so far, but that doesn’t guarantee a tax increase for the 2016-17 school year.
“Between now and when we adopt the official (budget) in June, we’ll continue to work on that,” Kirk said.
Administrators will also apply for exceptions as they have, successfully, in the past.
A copy of the preliminary budget will be available for public inspection Wednesday.
School Superintendent Chris DeVivo also called it a “worst-case scenario budget.”
“As the State budget becomes more clear, we’ll be able to work ours and become more specific,” DeVivo said.
In June, school directors voted unanimously 9-0 not to increase taxes to balance a budget that was projected to include $93.5 million in expenses.
School directors filled the void through more than $2.68 million in the district fund balance.
“I don’t believe in using the fund balance for reoccurring cost. When you’re using it day-in and day-out for salaries and to turn on the lights, eventually it’s going to be gone,” Kirk said in June.
Since the 2005-06 school year, the fund balance has decreased about $1.7 million
The lack of a State budget also worried Kirk.
“Probably for the first time (last week), I started to get a little worried about where we’re at,” Kirk admitted. “We have three payrolls in the month of December –which average about $1.5 million. By the end of the month, we’ll have about $4-5 million left
“So, sometime in January, we will be tapping into – if we so choose – to open up our line of credit. Fortunately with the fund balance that we had, the amount of tax dollars that came into this district last Fall, we are good at this point. But, sometime in January if there’s still not a budget, we will have to make some decisions.
“I can’t imagine by mid-January that there’s not a budget, but I never thought it would’ve come to this point.”
An estimated $18-19 million is expected to come to Armstrong School District January 4 if a budget is passed.
The school district has a $10 million line of credit to help through maybe-mid January. School administrators sometimes pay that amount in a month depending on payroll and bills.
“We’re now scrutinizing every bill that comes in and talking to our vendors to see if we can delay payment,” Kirk said.
Projected financial figures could dip the school district into a $4.1 million fund balance.
Armstrong School District | jweaver December 18, 2015
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