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MIFFLINTOWN -- Leaders of Juniata County School District will have some difficult decisions to make in coming months, which may result in the realignment or reduction in staff.
Superintendent Gary Dawson discussed his plan to develop a sustainable budget with members of the board of directors during a workshop meeting on Thursday.
The projected $40 million budget includes a tax increase to the state index of 3.4 percent, plus $115,608 in exemptions that were approved by the state.
Revenues are expected to be $39.67 million, with $1.2 million -- or 3 percent -- coming from federal sources, $19.13 million -- or 48.3 percent -- coming from state revenue and $19.3 million -- or 48.7 percent -- coming from local sources.
The overall budget reflects a 1.94 percent increase in expenses over last year, from $39.2 million.
But even after making budget cuts, the projected budget is reflecting a negative balance of about $313,000.
"This budget is the first step toward sustainability. But we are not going to be able to solve our budgetary issues in a single year," he said.
Business manager Richard Meily explained that he felt the district came to such a poor financial state as a result of irresponsible decisions made when last year's budget was passed.
The board also discussed the possibility of having to cut academic programs to help balance the budget.
The district's financial state "was predictable. I told the board that was here (last year) this is where we were going to end up…I think this budget is realistic. Short of tapping into our reserves, I think that is the only way we can maintain things," Meily said.
The preliminary budget assumes that there is no deficit in cafeteria expenses and that there are $200,000 in maintenance expenses.
Unpredictable expenses include special education, the collective bargaining agreement with the teacher's association and charter school expenses, which are expected to be about $1.65 million.
Dawson said the 2020-21 budget showed a $1.3 million deficit. To rectify this, he met with the administrative team to discuss potential staff reduction and realignments that would have the least amount of impact on students, as well as cuts in other areas.
"We have to face the financial realities of where the district is currently," he said.
By looking at reduction and realignment of staff, Dawson said the district could see a savings of $700,000.
"That's not something anyone wants to do," he said. "But these are the financial realities."
Another $300,000 can be saved by tapping into a retirement reserve that was created to help offset the rising cost of retirement, however, Dawson explained that is not a sustainable solution in future years.
"I want to try to get us in a place where we can develop a budgetary philosophy that provides for the longterm needs of the district in a responsible, sustainable manner," he said. "The reoccurring revenues have to equal the reoccurring expenses…If that's not true, you're setting yourself up for a real budgetary problem."
Dawson explained that he would also like to form a longterm maintenance plan to fund a needed $7-10 million in repairs at the secondary schools.
"With hard work and diligence we're going to be able to (balance the budget), but it's going to take some attention. It's going to take multiple years and some discipline to get ourselves back to sustainability and where we need to be," he said. "Until we get our budget in a position where it is sustainable, we will continue to be this hamster on the wheel for cuts."
Board member Amy Wagner asked that Meily and Dawson do what they can to ensure that academic programs are not cut in the upcoming budget.
"If we have sustainable budgets and do reasonable and responsible tax increases, I would prefer not to see academic programs cut," she said.
Prior to the meeting, resident and former school board member Heather Kelly also requested that the board look at ways to avoid cutting academic programs.
"Last year at budget time, Mr. Meily warned the board that the budget being passed was the most irresponsible he had ever seen because it did not provide for the realities of future cost increases. When five out of nine board members committed one-quarter million dollars a year to hire Dr. Dawson last year, the four board members who voted against the position predicted this scenario," she said. "Costs increase -- regardless of whether the district hires one new employee or adds a single new class…Here, we aren't talking about new programs or initiatives. We're talking about maintaining what we have. The status quo requires revenue increases -- increases that have consistently been avoided or underanticipated.
Kelly continued, "While the outcry of not cutting activities has abated, let us not forget to listen to the underlying message. Hundreds of people in this community have not only spoken against cutting sports and activities, they have spoken in favor of investing in our young people and investing in our county's future."