The Octorara Area School District is proposing a record-high budget for 2010-11, but no tax increase.
The school board met both Jan. 11 and Jan. 18 and heard business manager Dan Carsley outline a $47,609,008 budget which will use $508,000 of the district’s $1,174,250 in reserve funds to meet expenses, but still leave the school district with a reserve of $666,250 at the end of the 2011 school year.
The largest anticipated line item increases facing the district are: a 57 percent increase, to $606,000, in retirement contributions to PSERs; a 20 percent increase, to $437,000 in medical insurance; a 20 percent increase in tuition to area vocational schools, to $175,000; a 10 percent increase to Pennsylvania charter schools to $531,000; a 10 percent increase in debt service, to $531,000; a 7 percent increase in transportation, to $193,000; a 6 percent increase in salaries, to $1,151,000; and a 5 percent increase to IU services, to $124,000. These line items alone total $3.8 million.
On the revenue side, the district budget is showing signs of local economic wear and tear. Carsley said interim real estate taxes are down 30 percent, and earned income tax revenue is down 6 percent.
Carsley said district assessments fell $416,740 (.06 percent) between December 2008 and December 2009. He said unemployment has caused residents to look for ways to reduce costs, including appealing real estate assessments.
Superintendent Tom Newcome said administrators will present a list of options for budget cuts in February. He said dipping into the school district’s fund balance will open “a conversation,” and he respects both pro and con viewpoints.
The school board next meets at 7:30 p.m. Monday, Feb. 8 in the middle school multipurpose room. Copies of the proposed budget are available in the district office.
The Octorara board also approved district participation in the PSEA/NEA Race to the Top; the independent audit of the fiscal year ending June, 2009 (with no findings); and new course offerings for Octorara High School.
Newcome credited high school counselor Dr. David Rutledge with saving some high school courses. He said Delaware County Community College discontinued its classes at OHS. Rutledge asked Harrisburg Area Community College to pick up the program, and they stepped in to do so, at a lower cost.
Finally, in personnel items the school board hired: Virginia McBiddle as an accounts payable clerk; Karen Williamson and Lisa Gerber as substitute second grade teachers; Paulette Moffa as a substitute elementary guidance counselor; Jeff Thomas as a volunteer set design construction volunteer; Cortney Rieck as a substitute support staff; and Scott Forman as a volunteer girls basketball coach.