At a time when school districts are buzzing with activities, the East Penn School District board members continue to work on the 2016-2017 preliminary budget to maintain those programs important to the students and the community.

At the April 11 school board meeting, Interim Business Manager Denis McCall updated the board on revenues and expenses pertaining to the preliminary budget and the status of the 2016-2017 state budget which affects the school district.

The district’s preliminary budget presented in December 2015, projected a millage increase of 4.82 percent with an increase of $174.30 to the average household. The budget utilized $3,418,800 of the $7,839,959 fund balance to keep the increase to a minimum.

The preliminary budget presented April 11 projected a millage increase of 3.10 percent with an increase of $112.11 to the average household. The budget utilized $2,891,101 of the $7,839,959 fund balance.

Building budget restoration, department budget restoration, Project Lead the Way, secondary science resources, middle school literature resources, elementary writing resources, Elementary Read 180 program – special education, kindergarten through grade 12 English as a Second Language resources and a district climate survey are all included in the 2016-2017 preliminary budget at a cost of $666,170.

Not included in these projections are the additional district needs requested by Superintendent Dr. J. Michael Schilder. These include recurring costs of an Alburtis Elementary School teacher, a school resource officer, special education staff for autistic classroom support, an ESL teacher for middle school to be in compliance with the Pennsylvania Department of Education and an assistant principal/supervisor for two elementary schools. These requests total $470,000.

Schilder said without the additional teacher at Alburtis, there may be 31 or 32 students in certain classrooms. As in the past, Schilder has advocated for a school resource officer who would act as a deterrent, increase response time in emergencies and provide safety to both students and staff.

Additional priorities of one-time costs include science texts and resources at the high school and student computers to establish equitable student-to-computer ratios. The cost to fund these requests is $195,000.

Additional one-time-cost priorities include additional student computers and a web-based time management system and web-based applicant tracking and hiring system for the human resources department. These requests are valued at $223,000.

Capital reserve projects for 2016-2017 include a chiller replacement at Jefferson Elementary School for $253,000, security cameras phased replacement at the high school for $42,310, security cameras phased replacement at Eyer Middle School for $37,263 and security cameras at Lower Macungie Middle School for $40,892. These items would be taken from the capital reserve fund which is then replenished from the general fund.

Discussion included use of the fund balance and budgetary reserve, plans for a long-range fiscal and capital plan and the lack of state funding.

For new board members, McCall explained the fund balance is the difference between assets and liabilities on a balance sheet – not including buildings. The budgetary reserve is an account created in the budget to transfer money into other expenditure accounts if needed with approval from the board.

Board member Charles Ballard stated his concern about having a structural deficit budget for the next two years and the continued use of the fund balance. Ballard also asked where the additional money would come to fund the additional priorities recommended by the administration.

McCall suggested adding the numbers to the budget to determine the impact.

“Not having a balanced budget leads to a slippery slope,” Ballard said. “I’m not inclined to agree without a plan to get out of it for the next two years.”

Board member Ken Bacher said he shared some of Ballard’s concerns. “If we don’t build a school, we do have a plan to utilize the drop in debt service to address the structural deficit. It is a concern.”

Board member Chris Donatelli said he was looking forward to working on the long-range plan. “That will be a big help for me.”

Board member Paul Champagne said it would be helpful to see fixed costs to determine the flexibility the board has to close the structural gap.

McCall said the proposed 2016-2017 budget approval is scheduled May 9 and final approval is scheduled June 13 with decisions on implementing priorities and millage rates pending.

McCall suggested the board utilize the long-range planning tool to make current and future educational decisions and discuss budgetary reserve and fund balance priorities.