For Immediate Release:
April 16, 2010
Contact:
Lisa McVey, Communications & Community Relations Liaison, 610-869-2441, ext. 1019
Avon Grove School Board Weighing Options for Balancing the 2010-2011 Budget
West Grove, PA — At the April 8 meeting of the Board of School Directors, Dr. Augustus J. Massaro, Superintendent of Schools, presented an update on the District's efforts to balance the 2010-2011 General Fund Budget. The proposed plan that was outlined calls for reducing district expenditures by about $2 million, increasing real estate taxes by 3.8 percent, and using $1.5 million from the general fund balance to balance the proposed $74.5 million budget.
Proposed expenditure reductions include $927,247 in personnel cost reductions, $697,900 in operations cost reductions, $225,000 in transportation cost reductions, and $191,230 in the cost of contracted services.
Dr. Massaro reported that the district’s annual revenues are down by about $2.3 million overall, including a decrease of $1.2 million due to property tax assessment appeals and an additional $1.1 million due to a decrease in transfer taxes, interim taxes, and interest earnings. According to the current budget draft, total revenues for 2010-2011 are expected to be about $73 million, which includes a projected $1.7 million increase in basic education funding contained in Governor Rendell’s budget proposal for the Commonwealth.
Projected expenditures next year include a $1.6 million increase in salaries and wages, a $1 million increase in medical insurance costs, and an increase of about $600,000 in pension costs. Other major expenditure increases include $600,000 in tuition costs for vocational and other programs conducted through the Chester County Intermediate Unit. Much of the tuition increase is due to increased student enrollment in vocational programs.
Guiding principles used to develop the balanced budget proposal include alignment with the goals and action plans outlined in the district’s five-year strategic plan and evaluating ways to reduce costs while attempting to minimize the impact on student achievement, said Dr. Massaro.
To help balance the proposed preliminary budget, district officials sought input from a number of groups to identify possible expenditure reductions. The Board Finance Committee has reviewed district finances and budget information on an ongoing basis. In addition, district and school administrators met from December through February to review the budget and identify and evaluate potential areas for cost savings. District officials also met with the Avon Grove Education Association president and vice presidents and the Avon Grove Educational Support Professionals Association Leadership Team to solicit budget recommendations. The Board of School Directors also sought input and feedback from all other district employees.
The Board sought input from the public at the April 8 meeting and is currently seeking additional input on the budget from members of the school community. A Budget Feedback Form is posted online, along with links to the April 8 budget presentation and other financial background.
At the April 8 meeting, Dr. Massaro cautioned that in order to balance the budget as outlined and maintain existing educational programs for students, full funding, including the $1.7 million increase in basic education funding, must be provided by the Commonwealth.
The Board of School Directors has requested permission from the Pennsylvania Department of Education to increase real estate taxes above the Act 1 adjusted index limit of 3.8 percent up to 6.4 percent and has been granted permission to do so, if necessary.
If proposed funding levels from the Commonwealth fall short, or a tax increase lesser than 3.8 percent is considered, or the proposed expenditure reductions are not made, other expenditure reductions will be necessary to balance Avon Grove’s general fund budget. Those reductions could include support staff reductions, leaving vacant positions unfilled, grant revisions, and further department budget reductions.
The next budget update will be made at the April 22 meeting of the Board of School Directors. According to the district’s budget timeline, the Board is scheduled to consider preliminary adoption of the proposed 2010-2011 budget on May 13. A Board meeting is also scheduled May 27. The Board is scheduled to consider final adoption of the budget on June 10. By law, the final budget must be adopted by June 30.
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Posted:
Friday, April 16, 2010 3:46 PM
