School board considers closing Regency Park Elementary, raising taxes

Big changes are coming to Plum Borough School District next year, after school board members say they will be forced to make cuts in an effort to eliminate a large budget deficit.

This week, the board voted 8-0, with one member absent, to approve the district’s preliminary budget ahead in order to meet the deadlines necessary to raise taxes about the state-imposed maximum of 3.2 percent. The preliminary budget, which will now be available for public inspection, calls for a tax increase of 4.5 percent and the closure of Regency Park Elementary School.

District business manager John Zahorchak said the preliminary budget does not mean that the board will vote to increase taxes, only that it has the option to do so as it works on the budget through June.

“It’s just an extra option,” Mr. Zahorchak said. “It creates a little bit of flexibility.”

The district is facing a $5 million budget deficit for the 2018-19 school year, Mr. Zahorchak said. As outlined in the preliminary budget, the closure of Regency Park will save the district about $1.4 million and the 4.5 percent tax increase would generate about $1.5 million in new revenue. The district also has a general fund balance of about $2 million.

Closure of Regency Park could mean between 11 and 19 furloughs, depending on how many teachers retire from the district this year, Mr. Zahorchak said.

Late last year, the school board commissioned the Pennsylvania Association of School Business Officials to conduct a financial review of the district. The auditors recommended that the district close the elementary school and raise taxes to offset the deficit, and outlined four options about how to relocate students after the closure.

Board president Steve Schlauch said discussion about where to move the Regency Park students, and whether that will mean making Oblock Junior High School a grades six to eight school likely will be tabled until the board meets in February.

“My top priority is to provide the best possible education for our students at a cost affordable to the hardworking families and seniors in this borough,” he said.