The Boyertown Area School District is grappling with a $3.6 million deficit in its preliminary 2015-16 budget.
To cover the deficit in the $107.4 million spending plan without cuts or additional state funding, a property tax increase of about 6 percent would be needed.
The numbers change drastically between the preliminary and the final budget, Finance Director David Szablowski pointed out, but this year, the biggest question mark is Gov. Tom Wolf’s budget presentation scheduled for March.
“Because he’s new, he gets an extra month to make that presentation,” Szablowski said. “He got elected saying he wants to provide adequate funding for schools.”
Other variables in the budget, which will be presented to the school board Feb. 10 for adoption, are increases in health care costs and special education expenses for the district. The 20.7 percent increase in retirement contributions for the coming school year is one thing that is already set.
While the state’s Act 1 index limits a property-tax increase for the district to 2.3 percent, exceptions to that index are available that would allow an increase of more than 6 percent. The board can apply to the Pennsylvania Department of Education for exceptions made for special education costs and retirement funding.
Based on the preliminary budget, Berks County residents in the district would see an increase of 1.44 mills, or 6.16 percent and Montgomery County residents have a projected increase of 1.48 mills, or 6.36 percent.
Those numbers represent a preliminary budget with few cuts. As funding formulas from the state become clear, the budget will be revised and cuts will likely be made, Szablowski said.
“We have a long way to go before we get to the final budget, and i know you will find a lot of savings,” school board member Donna Usavage said. “But I feel like I’m waiting to see you pull a rabbit out of the hat.”
Many members of the board expressed that an increase that large is not acceptable. Board member Christine Neiman said she “could not and would not” support the budget as it stands.
Several board members requested that district administration come back with recommendations for where cuts could be made and money could be saved.
Superintendent Richard Faidley said that recommendations would be made, while keeping an eye on the balance between cost and quality.
“These decisions have major ramifications on the quality of education,” he said.
The Feb. 10 meeting begins at 7 p.m. at the Education Center, 911 Montgomery Ave. The final budget will be presented on April 28, and final adoption is scheduled for June 2.
