Beginning in May 2017, when the Franklin Regional School Board decided to build an elementary education campus, residents asked for a cash flow plan to prove that we could meet our financial and academic obligations. This request has been denied through June 1, 2020.
New bonds for the Sloan campus will require 11 mills of real estate tax revenue for repayment by 2024. Annual increases in teacher’s salaries, pensions and insurance consume most of the annual Pennsylvania Act 1 tax increase limit, leaving only minor new tax cash for Sloan bonds. This problem will lead to potential bond payment default in 2024 or 2025, or a voter referendum required by excessive tax increase needed to meet debt obligations.
The following cash sources are being tapped for future Sloan debt:
• 4.9 mills tax from 1990s construction debt (available in 2023-24)
• Postponing Sloan bond principle payments two to five years, at $2.4 million increased financing cost
• Increased deficit funding of capital and technology reserves (2019-24)
• Postponed middle and high school repairs and academic facilities renewal (2020-24)
• Postponed replacement of obsolete, out-of-print texts and instruction materials (2018-21)
• Surprise 2019-20 $1.8 million surplus from covid-19 operating cost reductions and grants
Parent investments in tutoring and college remedial learning more than offset potential savings from postponed curriculum renewals. Harm to some students’ academic performance is not reparable.
It is time for open and complete Sloan campus financial disclosure.
Walter S. Cebulak
Murrysville