The Otto-Eldred School Board of Directors adopted the final 2021-22 school budget by a 10-1 vote Tuesday, which includes a property tax increase.

The board approved an increase of 1.5% (.28 mils) with a 9-2 vote (dissent from Matt Windsor and Elizabeth Murphy), which will provide an additional $23,000 in revenue. This equates to an increase of $2.76 per each $10,000 of assessed property value. Windsor was also the dissenting vote against the approval of the budget.

Otto-Eldred Superintendent Matthew Splain explained that expenses from 2020-21 to 2021-22 increased 3.56%, with projected revenue increasing 4.3%.

The budget utilizes just under $400,000 in unreserved funds. Without a state budget in place, Basic Education Funding and Special Education Funding was level funded.

Splain explained the challenges facing Otto-Eldred, with a high aid ratio and heavy reliance on the state for funding.

“Overall, Otto-Eldred has very little control over revenues. Unfortunately, we are being punished for low taxes and a limited tax-based,” Splain said. “There is little industry in Otto-Eldred, however, there are thousands of acres of land in the ‘Clean and Green’ program.”

Splain noted that any formula or list developed that is designed to help underfunded districts does not include or benefit Otto-Eldred.

“Comparing districts across the state is very difficult due to vast differences in resources and histories of each district. We have not been a district that ‘taxes and spends’. Due to the limited economic opportunities in our area, our residents have limited financial resources,” he said.

Splain also stated that the recently shared list of underfunded “Level Up 100” districts that was developed includes many districts in high need. It also includes many districts sitting on massive reserves. Somehow, Otto-Eldred School District is not on that list. By applying the past Adequacy Formula from over a decade ago, Otto-Eldred is underfunded by over $1 million dollars.

“If an increase in state funding is not seen in this budget, we will be, in essence, defunded. Last year, we knew and planned for level funding due to the challenges brought about by the pandemic,” Splain said. “Going forward, our students deserve the same funding and opportunities available in more affluent areas. There is nothing left to cut from our budget that would not decrease opportunities and resources for students.”

In other matters, the board approved a few updates to the Extra-Curricular Rules & Responsibilities as well as the Student and Staff Acceptable Use Policy for Technology. An update to the 2021-22 school calendar was approved, which moves the first student day to Thursday, Aug. 26.

Several personnel approvals were made, including the hiring of Tammy Schenfield and Chelsea Brien as elementary teachers, beginning in August. With support of the administration, the board approved changes in place which updates positions in the cafeteria to include a Kitchen Manager, filled by Valerie Nichols. As a result, the Food Service Director and Assistant to the Business Manager become half-time positions, filled by Christine Krott. According to Splain, the change saves the district over $40,000 in personnel costs. Bids for parking lot repairs were approved and awarded to Taylor & Armstrong.

As part of the Ag Program Application, an articulation agreement with Delaware Valley University was approved. Once approved, Otto-Eldred students will have the opportunity to earn related industry credentials while mastering competencies that will align with credit requirements at DVU.

Splain briefly explained the process for federal funding applications this summer. As part of the application, an updated Health & Safety plan will need to be developed and approved. To qualify for funding, the plan must adopt guidance from the CDC as it relates to operation of schools in the fall.

Splain explained that “the board overwhelmingly supports the current direction from the Pennsylvania Department of Health which will eliminate required mask use by June 28, with limited exception. Currently, plans will not include providing continual access to synchronous learning as was done during the 2020-21 school year. The hope is that Otto-Eldred can run as normally as possible in the fall, with supports in place for instances when COVID may re-emerge.”