South Fayette preliminary budget projects $3-4 million shortfall
The South Fayette School Board expects to have to fill a $3-4 million deficit in its 2018-19 preliminary budget.
Finance Director Brian Tony presented three budget scenarios to the board, all of which take out at least $3 million from the current $22 million rainy day fund balance.
If the board raises property taxes up to its 3.1 percent Act 1 Index, which is .8272 of a mill, it will still face a $3,112,726 deficit to the $59,746,282 in expenditures. The board voted in December against applying for exemptions to the Act 1 Index, meaning it cannot raise its 26.7 millage rate above 27.5272 mills.
If the board decides not to raise taxes, $4,209,684 is projected to be pulled from the $22 million fund balance. The board didn’t raise taxes last year, but that decision was a rarity, as the board raised taxes nine of the last 10 years before last year.
Tony also showed the board what the budget would look like with a half-mill increase, which would leave the board with $3.547 million coming from the fund balance.
Like most school districts in Pennsylvania, South Fayette is struggling with soaring pension costs. The Pennsylvania Public School Employees’ Retirement System expenditures total more than 13 percent of South Fayette’s budget.
Unlike other district’s across the commonwealth, South Fayette has had a rapid influx of students. Since 2009-10, South Fayette has increased its enrollment by about 1,000 students. The projected enrollment in 2018-19 is 3,363.
The largest increases in the budget are in staffing, PSERS, special education and security. Tony projected a nearly $1.5 million increase in staffing with the hiring of 17 teachers. Five of those teachers, Tony said, are “contingent,” meaning they’re not guaranteed to stay in the budget. He added that several other parts of the preliminary budget are contingent and may not be in the final budget.
“For contingency expenditures and positions, (we) currently have just over $1,338,000. Those are all still in the budget,” Tony said. “We’ll start trimming that down a little bit as we move into May.”
PSERS and special education will both require about $500,000 increases, while security’s $250,000 increase includes the possibility of adding another school resource officer. The district currently has one SRO, Sgt. Jeff Sgro. The board has yet to discuss or take action on additional security on campus.
The board will adopt a proposed final budget on May 22 and pass a final budget on June 26.
Also during the meeting:
- Helen Cardillo announced this year’s Penny Challenge raised more than $12,000 from special needs organizations. A total of $190,000 has been raised for special needs in the Penny Challenge’s 24 years.
- Superintendent Ken Lockette, who started with the district in January, presented his “100-Day Plan” to the board. Lockette discussed possible improvements to a wide range of topics, including curriculum, safety, technology and communication.