CR Finance Committee to Discuss Impact of State Budget

Council Rock School Board’s Finance Committee will meet tonight to discuss how a state budget proposed by House Republicans in Harrisburg would impact the district’s finances for 2011-2012.

Last week, Superintendent Mark Klein reported to the board that the district would see a $2.57 million increase in state funding if the House Republicans’ proposed budget is approved next month.

The new state budget presented by the House Appropriations Committee will be considered by the full House of Representatives the week of May 23, according to the district’s Director of Business Administration Robert Reinhart.

The budget being proposed by House Republicans increases Basic Education Subsidies by $100 million statewide, Reinhart explained last week. It also calls for a full restoration of state support of Social Security and partial restoration of the Accountability Block Grant.

What that means for Council Rock is a $926,165 increase in the district’s Basic Education Subsidy, $156,159 more in Accountability Block Grant funds, and a $1.49 million increase in Social Security reimbursements.

The district is required to pass a budget by June 30. Initially, a final budget approval was scheduled for June 9. However, in light of the activity in Harrisburg, officials indicated last week that final budget approval would likely be pushed off to the June 23 meeting.

In April, the school board approved a $198.66 million preliminary budget for next year. That preliminary budget assumes a 1.4 percent property tax increase, or $58.52 for the average homeowner.

However, many board members are seeking a budget with zero tax increase. And if the upped state subsidy does not pan out, the district needs to cut $1.9 million more from the budget to keep it flat.

When the budget process began, Council Rock was facing a $14.2 million budget shortfall as a result of reduced state aid, tax revenue declines, and increases in contractual obligations like salary and benefits.

Under the preliminary budget, $9.1 million has been cut from expenses and $1.1 million reduced through salary concessions. A $4 million infusion from the fund balance was applied to make up the rest.

The Finance Committee meets tonight following the Facilities Committee meeting, which starts at 6 p.m. Finance Committee typically begins at 7 p.m. The meeting takes place at the , Historic Classroom 1.