SMETHPORT — Faced with a preliminary 2021-22 budget that shows a deficit of more than $600,000 fueled by many unanticipated expenditures from the COVID-19 pandemic economic downturn, Smethport Area School District officials are actively seeking ways to reach a balanced budget by June 30.
The proposed budget shows expenses of $16,279,181 and revenues of $15,586,961, leaving a shortfall of $692,221. The overall budget is a 1.88% increase, which is based on the final 20-21 budgeted expenditures.
At Tuesday’s school board meeting, Superintendent David London presented the directors with an overview and general approach to the first draft of the spending plan that focuses on the district’s mission statement that points to instruction, curriculum, achievement and assessment. Included in the preliminary budget is the new position of K-12 assistant principal, who will allow the two principals more time to work with the teachers and students as the district recovers from the pandemic.
“COVID-19 really derailed our program,” London said. “It’s time for a ‘Fresh Start,’ the plan that centers on the district’s vision and mission statements. For a fresh start, hopefully, Mr. Benson and our principals and new personnel can get us back on track.”
Junior-Senior High School Principal Brice Benson will become superintendent when London retires after this school year. Douglas Dickerson has been hired as secondary principal.
On the state revenue side, the biggest unknown is the basic education subsidy. London said, “The governor has proposed a very robust plan for education, but it faces an uncertain future in the Legislature.”
Otherwise, total state revenue for Smethport is up by $216,202.
Meanwhile, local revenue shows an increase of $169,647, due in part to increased net real estate taxes and payment of delinquent taxes.
“The higher amount of collected delinquent taxes was probably due to the stimulus checks,” London noted.
Federal revenue coming to the district is projected to be lower by $249,010.
Parts of the preliminary budget that show increased costs are instruction, special education, support services, principal offices, cyber charter schools and technical education staff. At the same time special education revenue from the state is also increased.
Outlays for athletics, technology and budget are projected to go down.
Higher district contributions to the Public School Employees’ Retirement System continue to be a huge part of local budgets across the state. For Smethport, this amounts to 34.9 percent.
London spoke about some ways to achieve a balanced budget, which the Pennsylvania Department of Education requires annually by June 30. Among these are a modest tax increase, transfers from several fund balances and grants.
“A modest tax increase is better than avoiding increases for a while and face large increases in the future,” London said.
In another financial matter, the directors OK’d the collective bargaining agreement with the Smethport Area Educational Support Professionals Association from July, 2021, to June 30, 2024. The contract carries an average wage increase of 2.37 percent.
Directors also approved a memorandum of understanding with the union regarding the part-time status of the cafeteria staff and extra hours for cleaning that must be added to the new contract.
Jeff Wagner was appointed board secretary as of March 20, 2021, rounding out Sue Jordan’s four-year term, at an annual stipend of $1,000, prorated through June 30, 2021. Wagner will become business manager, replacing Jordan who is retiring after 23 years with the district. Her last day is Friday.
While the directors approved a resolution regarding cyber charter school funding reform, they unanimously defeated a move to renew VLN Partners as a cyber school resource for the 2021-22 school year.
Also gaining a nod was the motion approving the transfer of $270,000 from the surplus balance to the PSERS designated committed fund balance. In addition, directors authorized a transfer of $550,000 from the surplus balance to the capital project fund.
Approval was give to the motion with UPMC Cole for review and approval of paperwork through Sarah Colson, CRNP, for special eligible for ACCESS.
Benson outlined the new supervision plan which highlights students’ academic growth.
In other action, the directors approved:
— an early dismissal on April 1 if the student council reaches its goal in the annual canned food drive;
— an agreement with The Guidance Center for Project RAPPORT program services from July 1, 2021, to June 30, 2022.
— two $500 Wolfinger Family Fund Grants provided through the Cattaraugus Region Community Foundation; and
— a high school summer school program from June 14 — July 1, Mondays through Thursdays.
