CLEARFIELD – During its third budget workshop Wednesday night, the Clearfield Area School District Board of Directors held an executive session that spanned more than two hours.
In addition, the board had numerous district administrators come and go from individual meetings with them over “contractual and personnel” issues.
When the regular session reconvened, board President Dave Glass sighed, indicating they were still facing an unbalanced budget with a current deficit of $650,000.
Board members then mulled a tax increase, which varied in size from 2 to 3 mills. But they appear to have sided with administrators who suggested an initial increase of at least 3 mills.
“I’m comfortable with it, but I’m not happy with it,” Glass said. Board member Larry Putt said no one likes an increase, but it almost seems a must for them to do so.
Sam Maney, business administrator, suggested they sway toward a 3 mill increase. In recent years, he said they have averaged an increase of 1.5 percent.
In agreement, Superintendent Dr. Richard C. Makin said they should set their initial tax increase at 3 mills. He encouraged board members to give it some more thought over the next week.
“And, we may come back and ask for another quarter or so,” he said. But he said they wouldn’t make any changes to the increase until further discussion of the same.
Maney said the district would receive $350,000 in revenue under a 3 mill increase. In a prior work session, he indicated they could not increase their millage beyond the maximum 3.56 percent, which has been set for them for the upcoming year.
Maney also indicated then that a mill equals approximately $117,000. He said if they raised taxes to the previously stated maximum limit, it would come out in the area of $415,000.
Board member Rick Schickling said they projected possibly needing to pull approximately $440,000 from their fund balance during budget talks last year.
“I would be comfortable with that,” he said. Following the meeting, Glass noted they didn’t have to draw from the fund balance last year. As of yet, he said they haven’t decided whether or not to do so for 2010-11.
Prior to the closed session, Maney presented a one-year budget opportunity that could narrow their deficit. Due to stimulus funding, he said they’ll receive $489,793 in 2010-11, which is an increase over last year.
Maney said they could use 50 percent, or $244,000, to help offset their budgeted expenses. He said they wouldn’t see the opportunity again next year.
“It’s a win-win for us. It’s the perfect opportunity for us to fill the gap. I just don’t see how it’s a negative,” Maney said. Makin said they planned to direct this stimulus funding toward one-time expenses.
Maney said the board 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.