Carlynton school board unanimously approves 2020-21 preliminary budget

Carlynton officials will have plenty of tough decisions to make as the school board approved the 2020-21 preliminary budget that has a $859,000 deficit and a slight millage increase.

Board members unanimously approved a $30.7 million preliminary budget at their Jan. 28 meeting. District officials will have until the end of June to reduce the deficit before approving a final budget.

The main topic was the district’s fund balance, which is projected to be at $2,383,251 at the end of June 2020. Board member David Roussos said directors need to take some steps to understand the limits of the remaining fund balance.

He suggests the board and administration agree on a minimum amount the needs to be maintained.

“My suggestions is to look beyond the current year. My concern is we are continuously reducing our fund balance,” Roussos said. “I support this preliminary budget but with the understanding we will all strategically use the fund balance.”

Certain factors have increased the fund balance the past two fiscal years — the first such increases since 2011-12.

Christopher Juzwick, director of fiscal affairs and budget, said several factors have resulted in a higher fund balance. Juzwick said last year the district made transportation changes that resulted in a savings. The previous school year, the district was awarded several grants.

Another key factor is how the district is managing the finances.

“We are not using the ‘this is how we did it in the past’ approach,” said Juzwick, who applauds the work of all district employees who reviewed all programs, software and materials to determine where each department could reduce costs.

During a finance committee meeting earlier this month, Juzwick said the cost for capital projects is a concern, although nothing is planned. On the positive side, the district has little debt, he said.

Board member Marissa Mendoza would like to stay away from deficits.

“The reason why we are going so hard now is to prevent us from becoming those other districts that are millions and millions of dollars in debt,” Mendoza said.

Expenses are expected to increase 3.7 percent for 2020-21. Salaries and benefits make up 71 percent of the expenditures. If the board approves a millage increase up to the state index allowed, the 0.7735 mill increase would bring the tax rate to 24.955 mills.

That tax hike would mean home owners with assessed real estate at $100,000 would pay an extra $77 in property taxes for 2020-21.

Several finance meetings are planned as district officials look to pare down the deficit. Information about those meetings and the preliminary budget can be found on the Carlynton district website at www.carlynton.k12.pa.us.