The operations committee of the Salisbury Township School District met Jan. 5 to review the 2015-2016 budget and decide whether to stay within the Act I index of 1.9 percent or develop and approve a preliminary budget including the Act I index of 1.9 percent and the Public School Employees' Retirement System exception.

The committee voted to approve a preliminary budget and apply for the PSERS exception.

Business Administrator and Board Secretary Robert Bruchak said Governor-Elect Tom Wolf is not expected to have his budget available until March. Therefore, using current assumptions, projected revenues are $32,827,933 including $26,401,374 from local revenue, $6,194,349 from the state and $232,210 from the federal government.

Regarding the projected revenue from the federal government, Board President Russell Giordano said, "this is a disgrace."

Projected expenditures are $33,413,998, leaving a difference of $586,065.

There is a difference in expenditures from the estimate provided Dec. 3, 2014, as health care costs decreased for the district.

Board member Sam DeFrank said he is concerned about the increasing PSERS and charter school costs facing all school districts. For the 2014-2015 school year, there is a 21 percent increase. For 2015-2016, the cost will jump to 25.84 percent, 2016-2017 the cost will jump to 29.69 percent, 2017-2018 the cost will jump to 31.56 percent, 2018-2019 the cost will jump to 32 percent and the cost will reach a high of 33 percent the following year.

The district currently has $773,000 in a PSERS stablization fund which was established many years ago when the board saw the expected cost escalation.

Bruchak asked the board for direction on creating the preliminary budget to see if any additional priorities previously discussed would be considered and included in the budget.

Additional priorities include full-day kindergarten, restore mid-day kindergarten transportation, elementary guidance counselor, restore world language exploratory at Salisbury Middle School, restore funding for elementary field trips, staffing of a cyber center at Salisbury High School, Keystone remediation tutors (one part-time mathematics teacher and one part-time science teacher), restore full complement of summer maintenance help, replace old maintenance department equipment, restore middle school swimming and uniform replacement, restore student activity budget cuts and propose two additional clubs, restore office coverage in elementary and middle school buildings and increase support in business office bookkeeping.

Superintendent Dr. Randy Ziegenfuss provided an estimated cost with each of the above items on the "wish list" to help the committee decide.

DeFrank said he does not want to agree to hire additional staff for this year and then lay off next year due to lack of funding to which committee members agreed.

"The state budget numbers are more of a question this year because of the new governor," Giordano said.

Committee member Audrey Fritz said the board needs to "think about programs, what we want to accomplish and what is important to our kids."

Giordano felt strongly the board must restore student activities funding.

Committee member Mary Ziegler is interested in restoring programs.

Committee member Dr. Chris Spedaliere suggested approving the resolution to stay within the Act I index of 1.9 percent and develop a referendum to let the residents decide on spending additional money to restore previously cut programs, activities and staffing.

After a discussion, it was decided developing a referendum would be too costly.

Committee member George Gatanis said he wants to "push hard to keep the number close to 1.9 percent."

Bruchak was charged with building a preliminary budget with a 3.5 percent increase and the board will build priorities around that number and whittle down as needed.

Administrators were also asked to prioritize the "wish list" for the board.

Moving ahead, a detailed preliminary budget will be presented at the Feb. 2 meeting. Approval is expected at the Feb. 11 meeting.

Budget development will be presented at the March 2 and April 6 meetings. The proposed final budget will be presented May 4 with approval expected May 13.

Additional changes will be discussed at the June 1 meeting with adoption of the 2015-2016 final budget expected at the June 17 meeting.