DUKE CENTER — The Otto-Eldred school board received another update on budget planning from Superintendent Matt Splain and business manager Brenda Long for the 2017-18 school year on Tuesday evening.
The current version of the budget leaves a $750,000 shortfall between expenses and revenues. Expenses increased .7 percent from the current year, while revenues are projected at .05 percent increase. With uncertainty at the state and federal levels, no increase in revenues from those sources were included in the budget.
A $350,000 Capital Reserve Fund transfer is included in this budget. This transfer is included as an expense, but it represents funds that the district is saving in a specific fund to be used for debt or building improvement costs. Assuming all projected expenses are accurate, $400,000 of the district’s general fund would be needed to balance the budget. Long explained that additional reductions may be found through consolidation of some transportation runs. The board will consider the preliminary budget for adoption in May, with final approval in June, both prior to the adoption of the state budget which would establish any additional revenues for the district.
In addition, Splain shared recent actions in Harrisburg related to the state budget and potential efforts to create shift in responsibility for property taxes in Pennsylvania. The current House proposal does not increase taxes for state residents, provides $100 million in additional funding for schools, reduces transportation funding and leaves a $20 million shortfall in the state’s pension responsibility. Other bills that have moved in the General Assembly would require a super majority vote (2/3) to pass any property tax. This bill would affect only school districts, not any other taxing body in the state.
All salaries for administrative and classified employees were finalized for the 2017-18 school year. Increases of up to 2 percent were approved by the board.
Parents should expect a slight increase in the cost of school lunches. Elementary lunches will increase from $1.75 to $2.00, and high school lunches will increase from $2.00 to $2.25. There will also be a slight ten-cent increase in the breakfast cost.
With regret, the school board accepted letters of retirement from Lance and Martha Baker. The school board acknowledged their dedication to Otto-Eldred students and the Otto-Eldred community.
Harley Ramsey, high school principal, announced the consideration of making a work study program available to students. The program would allow students to earn 1 credit for every 150 hours worked. “We are currently seeking interested employers that will accept students for work study or internship placements in all career areas,” Ramsey stated. Interested employers can contact the high school office.
