DUBOIS – For the DuBois Area School District it is once again the time of year for budgeting.
The proposed budge currently has the school district spending $54,380,555. This is an increase of $1,004,232, 1.9 percent, from the current 2008-2009 budget. Revenue in for this budget is $48,086,457 which is a 1.5 percent increase from last year. For reasons this budget did not include any potential money from the stimulus bill.
Despite the $6.3 million deficit in the budget as is the school district will not be incurring a tax increase. The district rests in both Clearfield and Jefferson Counties. Clearfield County will see a .33 millage, 81.41 total, increase as part of the state’s annual stabilization process, but Jefferson County will see a .73 decrease, 27.47 total. The difference will be made up with money from the school district’s general fund.
The district will also be able to distribute $1,862,771 to around 8,111 approved tax payers. This tax payer relief is a homestead/farmstead reduction in the school tax bill.
Practically all of the budget, 90 percent, is non-discretionary. That is between contractual obligations and other agreements the school district has no way reducing or altering the cost. This comes to around $48,900,000, or still $850,000 over expected revenue. Salaries and benefits make up 70 percent, around $38,066,388, of the budget.
There were five additional sources of income that weren’t included in the budget as of yet that could have added up to $3,457,358. This would and could come from basic education funding, Title I, Title IID, IDEA and Stabilization, and this includes money from the stimulus. Stimulus money has to go towards new projects, and only a small percentage can go towards recurring costs directly.
Business Manger Sam Kirk, jr. announced during the budget presentation that he had been told that depending on state legislation that the basic education stimulus funding would not be coming to the school district. This removed around $1.1 million from the possible additional funds the school district was expecting.
With his presentation Kirk explained a few potential budge dangers in the years to come. Student enrollment with the district has been declining and is expected to continue to decline. The uncertainty of the economy is another pitfall for the district. The PSERS Rate is expected to increase from it’s current 4.78 percent to 26.04 percent in the 2012-2013 school year based on current employment numbers in the district if salaries increase at the current rate.
“If it goes to that rate the only way to minimize it is through pay roll,” said Kirk. By reducing the district’s head count the rate would drop.
The school board will also look at ways to save money in the coming years. One proposal given at the work session would be to start bidding out the district’s auditing process after Yutzey & Gabler increased their fee $800 to $23,000.
The school board will adopt the preliminary budget at the May 20 meeting. From there it will be viewable for thirty days until the June 24 meeting where it will be up for final approval.