CLEARFIELD – The Clearfield school board approved its tentative 2015-16 general and subsidiary fund budgets without any real estate tax increase during Monday’s combined committee and board meeting.
The proposed budget calls for $37.68 million in expenditures, which represents a 3.07 percent increase, from the current year. The proposed budget calls for $33.75 million in revenues, a 1.5 percent increase from the current year.
According to Business Administrator Sam Maney, the district’s expenditure line items include projected salary increases due to collective bargaining agreements ($35,000); retirement contribution increases ($574,000); and anticipated increases in professional service costs ($135,000), utility costs ($80,000), transportation costs ($251,000) and textbooks and educational supplies ($185,000). He noted decreases in anticipated substitute costs ($109,000) and in health insurance costs due to retirements ($22,000).
So far as the revenue line items, Maney said that he anticipates the district will see an increase in real estate tax revenue ($24,500), in earned income tax revenue ($50,000), a net increase in the Accountability Block Grant/Ready to Learn Grant ($166,00); and an increase in the retirement subsidy ($257,500).
For 2014-15, Maney has projected the district will have a $1.4 million deficit. He believes the district’s budget figures will come in better than that; however, he’s uncertain if the district will make up the entire projected deficit.
He said it would be hard to justify raising real estate taxes if the district may turn around and have a positive year. He said the district is in a transitional year and must wait to see what its financial future is while operating only two school buildings.
According to him, the district started with a general fund balance of $10.36 million on June 30, 2014; it is estimated to be $8.92 million on June 30, 2015. He said the upcoming year’s budget is presented balanced and projected to draw upon $3.93 million from the existing fund balance to take it just under $5 million.
Maney said the district’s tentative budget proposal was the “worst-case scenario.” He said it factored in that the district would continue to have the costs associated with the maintenance of its closed school buildings if they aren’t sold at auction.
The board also approved its tentative capital projects fund budget in the amount of $1.26 million; its tentative high school additions and renovations project budget in the amount of $782,476; its tentative Clearfield Elementary building project budget in the amount of $60,000 and its tentative cafeteria fund budget in the amount of $1.46 million.
The district’s tentative budget will be on display for 30 days before its final approval in June.