CLEARFIELD – Jason Barnett, business manager, met with the Clearfield Area School District Board of Directors in order to discuss and familiarize the new members with the budget process during a work session Wednesday night.
Barnett said he had worked with Superintendent Dr. Denise Keltz to develop a budget timeline.
“We’re right where we want to be,” he said.
The 2008-09 preliminary budget calls for a total expenditure of $33,300,047.
Barnett said salaries, change in the substitutes’ pay, additional staffing and health care are the district’s major costs.
“Health care increased 19.4 percent but $175,000 was offset due to the plan design changes the teachers undertook during negations,” he said.
Board Member Dave Glass asked about the 7.51 percent difference for salaries.
“It seems like a big difference based on the contract,” he said.
Barnett said the amount included numerous personnel expenses, including the pay rate for substitute teachers.
“That would make a big difference,” Glass said.
Barnett also said the cyber school costs was another “big one,” as it went up $100,000.
“It’s a frustrating expense and keeps growing,” Barnett said.
Board Member Larry Putt said the cost was ridiculous.
Barnett said the board cannot control the cyber school expenditure.
The preliminary budget currently results in $32,069,760 in revenue.
According to Barnett, the state basic education subsidy is the district’s largest revenue source at $11,893,200.
He said real estate taxes account for the most revenue locally at $9,801,961.
“If you add the two, you’re looking at two sources accounting for more than $21 million out of the $32 million in total revenue,” Barnett said.
He noted the state increased the basic education subsidy to 5.9 percent overall, but the district only received a 3.03 percent increase.
“If the state had given us a 5.9 percent increase, it would have resulted in an additional $300,000 of revenue for the district,” Barnett said. “It’s an equivalent of just under three mills.”
Barnett asked the board for a millage target in order to move forward.
“It’s your budget. We need something to work toward,” he said.
Barnett said the state has a 5.198 percent millage limit.
“You’re not allowed to go above that. In order to go above, you’d have to apply for exceptions,” he said.
Glass suggested the board target three to four mills, while Putt said a firm three.
Barnett said the board would aim to target that range.
He said only the board can set the millage.
“We’re not in horrible shape,” Glass said. “It’s very doable to get where we need to be.”
Barnett said he’d continue to refine the budget data as numbers became available.
The first draft of the tentative budget will be up for review and revision by the administration on May 1 and will be presented to the board on May 19.
The board will need to adopt the budget on May 19 in order for it to be available for 30 days prior to the final.
The final budget will be adopted on June 24.
The board will have a second budget work session at 6:30 p.m. May 5 at the middle school library.