School Board Approves $209.4M Preliminary Budget

The Council Rock School Board on Thursday approved a preliminary 2013-2014 budget that, if passed without changes, would mean a tax increase of $55 for the average household.

The $209.4 million preliminary budget as drafted calls for a 1.3 percent tax increase, which is under the 1.7 percent cap regulated by the state’s Act 1 Index.

Director of Business Administration Robert Reinhart is recommending the district use $2.45 million of its $29 million fund balance to make up for the projected $5.8 million deficit.  

The tax increase would net the district an estimated $1.78 million towards the deficit, plus more than 25 retirements and resignations will save the district $1.2 million in salaries, he explained.

But several board members said they’d like to see more of the fund balance used instead of increasing taxes.

“I believe we should use more fund balance,” board President Wendi Thomas said. “I don’t want $29 million in fund balance.” 

Reinhart warned “you have to be very careful” about using fund balance for reoccurring expenses.

Thomas voted for the preliminary budget, she said “begrudgingly,” but indicated she intends to push for more use of the fund balance. “I believe there are many people out there who are hurting,” she said. 

The preliminary budget passed 7-1 with Paul Anagnostakos as the lone no vote; board member Robert Donnelly was not in attendance.

Superintendent Mark Klein said the board has until June to decide on exactly where the money is coming from. The budget will be on the agenda the first meeting in June, he noted. A final budget must pass by June 30.

Jerold Grupp said he agreed with Thomas that the board needs to evaluate how much fund balance to use. “It’s a preliminary budget. This isn’t the final number,” he said.

District officials explained that the budget keeps general fund expenditures "mostly flat" with two exceptions—pension contributions mandated by the state and the addition of six staff positions, according to district officials.

In 2013-2014, the school district’s share of the contribution to the Public School State Retirement System (PSERS) will increase by $2.3 million for a total contribution of $18.4 million dollars, according to administrators.

The six additional staff positions are recommended by the administration to improve school safety and security, officials said. The new staff positions include two elementary school counselors, two middle school student assistance coordinators and two security personnel.

Questions or comments on the budget may be sent to budget@crsd.org.