Southmoreland deficit-reduction plan includes no tax increase
As work continues on Southmoreland School District's 2013-14 budget, the potential deficit continues to be sliced.
For now, the district's plan doesn't include a tax increase.
During a special board meeting Thursday, Bill McNamee, interim business manager, said the deficit stands at a little more than $600,000. The district initially faced a $1.6 million deficit. At the board's March 7 meeting, he said the figure was reduced to $1.2 million.
McNamee explained Thursday that several factors have led to the recent reductions:
• Four district teachers have accepted the early retirement incentive, resulting in a savings of a little more than $300,000. The board approved an amendment to its early retirement incentive motion during its March 14 meeting by removing the requirement that a minimum of six teachers had to take the offer for early retirement to be enacted.
• The increase in medical insurance won't be as high as expected — chopping another $127,000 off the expenditures list.
• Adjustments were made in utilities, saving about $128,000.
“We looked at utilities more in line with what their actual usage was versus what we had originally projected,” McNamee said.
Other miscellaneous adjustments reduced the deficit by another $2,300.
Superintendent John Molnar reminded board members that work will continue before a final budget is passed.
“We still have some things we will be looking at on the expense side,” Molnar said.
The board will have another budget meeting but didn't set a date, opting instead to choose a date at its April 4 meeting.
Former business manager Bill Porter explained to the board how past early retirement incentive packages helped the district, resulting in more money in the fund balance.
Porter presented a $4,160,000 net increase in the fund balance after the incentives were added.
Since the 2006-07 fiscal year, 41 teachers accepted the package, and only 25 were replaced.
He also lauded the district Thursday for basically breaking even, despite $1.9 million in revenues that were lost because of the closing of the Sony plant. The closing resulted in a $900,000 shortfall in revenues and the loss of $1 million in state subsidies.
“You broke even because we made a decision to put ERIs (early retirement incentives) out and control costs and downsize,” Porter said.
“A school district loses $1.9 million in revenue and breaks even — that's pretty outstanding.”
Paul Paterra is a staff editor for Trib Total Media. He can be reached at 724-887-6101 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Salem man, in lockup in Greensburg shooting, charged with threatening to kill prison guard
- Former Steelers LB Haggans to do time in Westmoreland jail
- 2 accused of taking baby to New Kensington drug deal get probation
- New Derry woman charged after mail delivery of 4 pounds of marijuana
- Ligonier Township residents voice concern to supervisors about new zoning ordinance
- Derry Township auto shop owner finds theft suspect hiding inside
- Electricity deal eyed for Latrobe
- Youngwood advances grease trap ordinance
- ‘Murder on the Nile’ at Geyer this weekend