CLEARFIELD – On Wednesday night, the Clearfield Area School District Board of Directors learned they’ll have to overcome at least a $1.1 million deficit under the preliminary 2010-11 budget.
At the present time, the budget calls for $33.9 million in total expenditures and an expected $32.7 million in total revenue sources, according to Business Administrator Sam Maney.
Maney said their real estate millage is currently at 86.84 percent, indicating a mill equals about $117,000. He said they could not increase their millage beyond the maximum 3.56 percent, which has been set for them for the upcoming year.
Maney, however, indicated the district may come away with a surplus for 2009-10. He said their fund balance reads $3.3 million and could increase to an estimated $3.5 million with a surplus.
Maney said the district’s revenue comes from local, state and federal sources. For 2010-11, he said they’re expected to receive $12.1 million in total local revenue. He said it was an approximate $62,000 increase from last year.
Under state revenue, Maney said he pulled the figures from the governor’s proposal in March. He said they’re anticipating a 5.2 percent increase, according to the governor’s proposed Basic Ed subsidy. He said it comes out to a little more than $13 million.
“Do you really think it’ll stay at 5.2 (percent),” Board President Dave Glass asked Maney. “Don’t you think that it’ll be negotiated?”
Maney said he was going by the figures from the governor’s proposal. Agreeing with Glass, Superintendent Richard C. Makin said he also believed it was a little risky.
Maney said he could reduce the district’s budgeted amount to 2 percent if they preferred for him to do so. Makin instructed him to hold off until they had reviewed the entire budget.
Later in the meeting, Maney again called the board’s attention to the Basic Ed subsidy. He inquired about how the board wanted to proceed with a budgeted percentage.
Glass suggested they reduce the percentage to 3 percent. Makin said he believed it was the correct move, stating many issues could impact the budget in Harrisburg.
Maney said their total state revenue is anticipated in the amount of a little more than $19 million. He indicated it was up $728,000 from the previous year’s total. He said federal revenue was expected to be $1.6 million.
Under expenditures, Maney pointed out the district salaries were up $217,000 over last year. He said they had a consortium meeting regarding benefits on Tuesday. He said they agreed to increase the same by 7 percent.
Maney also pointed to the district’s electrical costs, stating they’ve recently opted to consult with Premier Power Solutions. He said they have provided them with the district’s electric billing information.
Maney said Premier would contact him with projections for the upcoming year. For now, he said they told him to go with a 20 percent increase. He said they were projecting for a 30 percent increase, when the cap comes off in January of next year.
“It be may be an area we can trim though,” Maney said.
Maney said he has left $200,000 in the district’s contingency fund. He said it’s there in case a problem comes up during the course of the year. He said it’s not necessarily money that is ultimately spent.
Glass said the contingency fund is “certainly needed,” but he suggested reducing the same to the area of $150,000. He said he was willing to listen to Maney’s thoughts of doing so.
Maney said he entered the higher amount, as he’d rather have the funds available. He said he didn’t want a problem to occur through the year and the budget to be overspent.
Glass then pointed out if a future problem came at an expense more than $200,000, Maney would be approaching the board about the same anyway.
“We still have a lot of unknowns,” Glass said of the preliminary budget. “We’ll have to wait and see where the figures fall.”
Makin pointed out the board started further in the hole at this time last year. Glass added they could have also been in worse shape if not for a conservative budget in 2009-10.
Maney said they must approve a preliminary budget in May. He said it will then go on display for 30 days. He said the budget will be up for final approval at the June 21 board meeting.
The board tentatively set its next budget work session for Wednesday, May 5.