A review of the preliminary 2014-2015 school district budget shows a shortfall of $1,474,772.

This preliminary budget has many unresolved factors, including local, state and federal revenues; retirements; March interims; tax assessment appeals; diesel prices; CLIU special education services; KidsPeace contract; charter school enrollments; budget reduction actions and a five-year projection model.

The Act 1 budget process requires school districts to seek voter approval through referendum for tax rate increases over the Pennsylvania Department of Education calculated index of 2.1 percent. Should that option be chosen, the additional revenue would only bring in $454,394 to the district.

The value of a mill is $1,278,904.

District administration is recommending adopting a preliminary budget of $33,009,871 and a preliminary tax increase of 1.0098 mills which would include the Act 1 increase of 2.1 percent or .3553 mills, a Public School Employees' Retirement System exception of 1.75 percent or .2967 mills and a special education exception of 2.11 percent or .3578 mills. The district would ask for an exception from referendum with approval from PDE for the PSERS and special education.

According to the State Tax Equalization Board, 80.30 percent of the revenue stream for the district is residential. Industrial revenue is calculated at .84 percent, commerical is 17.02 percent and vacant land/agriculatural is 1.84 percent. Another revenue challenge is assessment appeals and a slow economic recovery.

A long discussion on charter and cyber school expenses, health care costs, transportation costs for non-public and charter school students, special education costs, PSERS costs (current rate is 16.93 percent; will jump to 21.4 percent) and capital improvement plan needs detailed the expenditures challenges for the 2014-2015 budget.

Any changes to the preliminary budget will be presented to the operations committee at a public meeting Feb. 3. A preliminary budget is expected to be adopted at the school board meeting Feb. 12. The deadline to submit a preliminary budget with a proposed tax rate increase to PDE is Feb. 24.

PDE has until March 26 to issue a ruling on the school district's petition for exceptions.

There will be a public presentation of the proposed final budget May 5.

The proposed final budget will be adopted May 14.

The final budget adoption is scheduled for June 18.