CLEARFIELD – After the Clearfield Area School District Board of Directors mulled over the 2009-10 projected budget, Business Manager Sam Maney said that they now face a deficit of approximately $100,000 at Monday night’s work session.
“This year is easy,” Superintendent Dr. Richard C. Makin said of the district’s current budget situation. “It will only get harder in the years to come.”
Although the board members debated, Maney and Makin were asked to work with a zero millage increase, a 4.78 percent retirement rate and a 200,000 maximum pull from the fund balance.
The board also reduced the $500,000 addition to the capital reserve to approximately $150,000.
In addition, it appears that the board has plans to eliminate one of two technology coach positions and a special education assistant position from the proposed budget for next year.
Board member Mary Anne Jackson voiced concern about the local economic conditions.
“We need to work with the recession. We need to do what we can do and tighten our belts,” she said.
Agreeing with Jackson, board member Larry Putt said that other entities were making sacrifices across Clearfield County. He said they would need to do the same as well.
Board vice president Dave Glass suggested that the board opt for a 1 or 2 millage increase. He said that he’d rather do so than hit taxpayers with 5 mills next year.
“Typically, I would agree with you. But what happens when these people can no longer pay it? We’re not going to get the revenue. It’s a no win situation,” Jackson said.
At the first work session last week, Maney indicated that the retirement rate also played a major factor in his preliminary budget figures. He said that the retirement rate for 2009-10 was locked at 4.78 percent.
However, he said due to an expected future spike, he has the rate set at 7.13 percent. He said the higher rate is not mandatory, and the district would see about $350,000 in savings if it was set at 4.78 percent.
Last night, board member Tim Morgan said that he, personally, preferred actual numbers be used in the budget.
“How soon are we supposed to get this jump,” Putt asked.
Maney said he couldn’t speak with certainty, as much depended on the future economy. He said it could spike, but, at the same time, the district could also receive a better rate than anticipated in the years to come.
Glass said that he felt uncomfortable with the locked in 4.78 percent rate.
“I don’t like not preparing for the future in no way. I’m not comfortable and leery that we’ll be in more of a hole in the future. I’m just trying to look forward,” he said.
Board member Susan Mikesell said that she agreed, saying she’d rather they have “a little extra” in preparation if they indeed faced a spike.
Maney told the board that the budget reflected the special education assistant position that Thomas Mohney, supervisor of special education, had requested at a recent meeting.
Glass said the board had tabled its discussion, and the position was not approved.
“That’s $80,000 right there. It’s a better part of 1 mill,” he said.
He also indicated that Mohney had said he could survive without the position.
Makin asked the board if they were certain Mohney had made the said comment about the position, since he wasn’t present at the meeting.
Makin was told that the board had received it in writing, when Mohney submitted his request for the position.
Board member Rick Schickling called attention to the district’s contingency fund. He noted that the district had used very little from the fund in the recent past. He asked if they could scale back their allocated amount.
Makin said that while they had the option, he didn’t recommend doing so.
“If something goes wrong in of the line items and there isn’t a contingency fund, then we’re really in trouble,” he said.
A tentative budget must be approved at May’s regular meeting and placed on display for 30 days. The final budget will be approved in June.
