Proposed budget plan shows $2.2M shortfall
Exeter School District Business Manager Anne C. Guydish reviewed the first draft of the proposed final budget for 201718 with the Exeter School Board on March 21. The final budget is scheduled to be adopted in June.
Guydish began the meeting by explaining how she wouldn’t be commenting much on legislative issues such as property tax elimination, and would instead defer that to April meeting.
“Let’s just focus on our numbers right now,” she said. “With no tax increase, we’re looking at a deficit of $2.2 million which means we would have to go back and look at our expenditures – if there was no tax increase – and cut some things.”
Examples of items that may be cut were not listed.
The rising costs of retirement contributions were listed as a major expense, in addition to healthcare premiums, new special education classrooms, and a new telephone system costing $210,000.
“Other big items in the budget that are impacting — we have to replenish language arts materials and math materials.” She also listed a need for STEM materials at the junior high and the senior high has made a request for another 3D printer at a cost of $16,000.
Guydish said the hope was for retirement costs to level off, but they are projected to keep going up and will continue to stress school district budgets.
With no tax increase, she said the district faces a deficit in the budget of $2.2 million; raising taxes to the Act 1 Index would bring a deficit of $700,000. By taking all exceptions, there would be a deficit of $280,000.
There were no comments or questions from the board following the budget presentation.
The 2017-18 Preliminary General Fund Budget was unanimously approved on Feb. 14 and reflects General Fund Revenue of $74,359,999; General Fund Expense of $75,365,887; Millage of 33.3627; and a deficit of $1,005,888.
The preliminary General Fund Budget brings the need to increase taxes above the index to 33.3627, or by 3.55 percent; a budget with a millage increase above the index allows the District to apply for referendum exceptions.
During the Feb. 14 meeting, the board unanimously approved a recommendation for Tax Increase Exception Filing which would allow for the district to apply for exceptions. The exceptions that have been presented to the school board for special education and school construction indebtedness are estimates and will be officially submitted to Pennsylvania Department of Education in their Referendum Exception System subsequent to submission of the preliminary budget. The exceptions are subject to the education department’s review and approval process. Approval of exceptions is not an indication that the school board will use the exceptions.
At the March 21 meeting, Guydish stated the district was still waiting for official approval from Pennsylvania Department of Education.
The rising costs of retirement contributions were listed as a major expense, in addition to healthcare premiums, new special education classrooms, and a new telephone system costing $210,000.