Salisbury residents are encouraged to attend the May 2 operations meeting 7 p.m. in the administration building to hear the public presentation of the proposed 2016-2017 final budget.

At the April 4 meeting, Business Administrator Robert Bruchak presented information on the recently passed state budget and changes to the final budget.

Bruchak said the $30.03 billion budget in House Bill 1801 became law although it was not signed by Governor Tom Wolf.

House Bill 1327 which determined how funds would be distributed was vetoed. The bill also included PlanCon reform. PlanCon is reimbursement to a school district which undertakes a major construction project and seeks reimbursement from the Commonwealth.

Basic education funding was increased by $150 million, the ready to learn block grant was increased by $50 million and special education was increased by $30 million.

Items not included in the 2015-2016 state budget are pension reform, liquor privatization, property tax reform, charter school funding reform or PlanCon funding.

Projected expense increases in the Salisbury proposed 2016-2017 final budget include a 2.4 percent increase in salaries based on contracts/agreements, a 5 percent increase in health insurance, a 2 percent increase in transportation and a 3 percent increase in charter school and out of district tuition.

Bruchak said it was difficult to project revenues since a 2016-2017 state budget has not been discussed. For the sake of completing a district budget, Bruchak kept state revenues level funded, planned on the Pennsylvania Public School Employees Retirement System exception and calculated a 50 percent reimbursement from the state for Social Security and PSERS.

With revenues projected at $34,594,170 and expenses listed at $35,844,158, a deficit of $1,249,988 was discussed by the board with options considered to close the gap.

Options include using part of the fund balance and raising taxes.

Bruchak told the board the district cannot maintain the current level of programs without any tax increase.

A list of underfunded mandates from the state includes PSERS which is $4,257,202. The district is projected to receive a 50 percent reimbursement from the state.

Transportation is another underfunded mandate with expenses being $2,126,238 and reimbursement of $500,051 from the state and $1,626,187 by residents. The Salisbury Township School District has four buildings, yet is required by law to transport students 10 miles from the boundary line or to 47 buildings.

“We get 25 cents to the dollar from the state,” Bruchak said. “Local taxpayers carry the load.”

Bruchak said the projected cost of $729,800 to charter and cyber schools is covered by local taxpayers.

As of March 21, 48 Salisbury students attend a charter or cyber school. The cost to the district is $12,000 for a regular education student and $24,000 for a special education student to attend a charter or cyber school.

Another underfunded mandate according to Bruchak is the special education federal mandate. Special education revenues from the federal government and the state are $1,106,731 for 2016-2017. Expenses are projected at $6,223,619.

Bruchak said local taxpayers are expected to cover the difference of $5,116,888.

Budget changes since March include a salary reduction by $13,842 due to a retirement, a benefits decrease of $5,214 due to a retirement and a reduction to the debt service of $87,451.

Additional expenses requested by administration include an interventionist at Harry S Truman Elementary School for $89,538, a special education teacher for $100,575, a human resources coordinator for $15,000, an administrative assistant part time for $30,131 and debt service to finance the HST project for $37,537.

The proposed final budget will be adopted May 18. The final budget will be adopted June 15.

Former board member Tom Mantz attended the meeting to hear the budget discussion.

“As a taxpayer, I would like to see you keep the tax increase below 2 percent,” Mantz said. “I would like to see the increase as low as possible.”