SMETHPORT — In his report to the school board Monday, District Superintendent David London invited directors’ comments about the preliminary 2017-18 budget after he reviewed some critical areas in the document, which now shows a deficit of $583,000.
“Several areas we’re watching carefully are the declining numbers in the kindergarten registrations, which now stand at 42, and could force a reduction of one teacher. The athletic budget is another area for potential belt tightening, especially by looking at the needed and used athletic insurance.”
According to London, the district will consider changes to the alternative education program and could consolidate some bus runs due to declining enrollment.
Like many other Pennsylvania school districts dealing with critical financial decisions, Smethport is faced with rising healthcare costs and increased contributions to the Pennsylvania School Employees’ Retirement System, which are not slated to average out for the next several years.
“The district’s quarterly payment to PSERS is now $429,000, and this is projected to increase,” said Business Manager Sue Jordan.
“The cost for upgrading the HVAC control systems at the elementary and high schools came in between $380,000 and $430,000, higher than expected,” said London.
During the discussion, director Nancy O’Day pointed out the large amount of money spent on substitutes in just one month, prompting London to say, “Maybe we should look at wellness programs like some other districts. At the same time, though, we’re entering that time of year when teachers are using their personal and emergency days, both of which are included in the district’s negotiated contract with the teachers.”
Director Dan Wertz mentioned the cost of $46,000 the district pays for cyber school students.
Fellow board member Ray Learn said that even transferring $580,000 from the district’s PSERS reserve account would closed the preliminary shortfall for one year and seriously reduce that account balance.
The district could consider raising the millage rate to 3.7 percent, an index calculated by the state, and a move allowable by the state, but this would only raise additional revenue by $110,000 to $112,000, Jordan said.
“We have some big decisions to make in the next several months,” London said. “It’s a tough time to run a school district with everybody looking for funds.”
With one director absent, the board unanimously approved two 2017-18 budgets for the Intermediate Unit 9: that educational agency’s general operating budget, which sets the Smethport district’s share at $43,128; and the Seneca Highlands Career and Technical Center’s spending plan that shows the district’s share as $208,230.
In other votes, the board approved a contract for $28,700 with Cole Memorial Hospital for athletic training services for 2017-18.
Another approved expenditure was $200 for the Smethport Fire Department.
