Hempfield Area School District is facing a $1.2 million deficit in one of the first drafts of the 2021-22 budget, but that number is expected to shrink before a final budget is adopted.
Business Manager Wayne Wismar cautioned this week that many unknown factors will impact the budget in the coming weeks. But, as things stand, the district is looking at increased expenditures and lower revenues compared to the current year’s budget.
In all, expenditures are expected to be about $930,600 more than planned. Of the projected $98.3 million in expenses, $67 million would go toward salaries and benefits while $31.2 million would go to buildings and departments.
Revenues, however, could decrease by about $307,400.
That decrease is largely carried by local revenues that may have been impacted by the covid-19 pandemic. Major factors in that are real estate taxes, down by $150,000 compared to last year, and delinquent collections, down by $65,000. As the economy rebounds, however, those numbers are likely to bounce back.
Several unknown factors, like the state budget, have yet to be accounted for in Hempfield’s budget.
The state’s budget includes a proposal from Gov. Tom Wolf that would filter more dollars through the state’s school system. The proposal, which would distribute $6.4 billion through a fair funding formula that takes several factors into consideration, also includes an additional $1.15 billion to ensure no district loses funding.
The plan is facing opposition from Republican lawmakers, however, due to its call to raise personal income tax rates for the state’s top one-third of earners.
Another factor that has yet to be added into Hempfield’s budget are the Elementary and Secondary School Emergency Relief Funds, or ESSER, which are being distributed to districts across the country as part of the latest federal covid-19 relief package.
As parts of the budget are clarified and numbers are finalized, Wismar said, “We do anticipate the revenue gap between 2021 and 2022 to shrink, I would say entirely.”
He added, “I honestly think a good chunk of that will take care of itself just through getting everything cleaned up and entered in. There are some additional things that we’re taking a look at as we speak that, if we’re able to bring them to fruition, will further reduce it as well.”
The school board will vote on a proposed final budget next month, with a vote on the final budget coming in June.
