The Salisbury Township School Board held its monthly meeting May 20 virtually via Zoom. In light of current issues regarding reconfiguration alongside the COVID-19 pandemic, in large part the meeting focused on budgetary issues and a deeper understanding of the where the district stands financially at this time.

Secretary of the Board Mike Taylor gave his report, which initially mentioned federal funding through the recently passed CARES Act. He said the money would not be added as a line item to the district budget, mirroring what other districts are doing because the $183,000 in funds have not been distributed yet and there is a fair amount of uncertainty regarding how or when the money will be received.

Taylor also reported S&P Global has downgraded Salisbury Township School District’s credit rating from AA to A+. S&P Global’s explanation was, “with recent reductions in reserves, the district’s financial flexibility is in our opinion, strained and without sufficient cushion to grapple with the increasing costs, which is now compounded by the uncertain economic environment.”

Board President George Gatanis requested Taylor go into some level of detail regarding the way the downgraded rating would affect the district. Taylor responded by informing the board the rating is used any time the district borrows money. The lower the credit rating, the more the cost of borrowing goes up. He did add this situation could be rectified and continued by citing ways the board is working toward an improved rating.

The implementation of Skyward school finance software on July 1 and human resources software will improve budgeting controls and provide enhanced financial reporting. In addition, bond re-funding for the district was implemented June 4, 2019 and saves the district $631,490. In light of that information, the board approved the district’s 2020-2021 proposed final general fund budget reflecting total expenditures for $38,405,587, which will require a real estate tax levy of 20.4834 mills and factors in a deficit of $341,000. To aid in acquiring the appropriate amount of tax revenue, the board approved moving forward with Keystone Realty Advisors, who will help the district with community members whose properties are under-assessed in the district.

In personnel news, the board accepted the resignation of Otilia Rivera as a part-time, one-to-one instructional assistant at Western Salisbury Elementary School effective retroactive to the end of the workday March 8. In addition, the board approved Taylor as the board secretary for the Salisbury Township School District for the term of July 1 through June 30, 2021 and appointed Mary L. Ziegler as treasurer for the Salisbury Township School District effective July 1 through June 30, 2021.

The meeting closed with frank discussion regarding tough financial decisions anticipated for the district. Gatanis spoke of the difficulties with the budget, the possibility of furloughs and the proposed school reconfiguration. He wondered where cuts can be made that won’t affect students as a whole throughout the district?

Board member Samuel DeFrank said every student will be impacted, no matter where they go. He asked, “What’s more important? Their safety? Security? Education? Or building? They will receive the same Salisbury education no matter what building they are sitting in – $800,000 has to come from somewhere. There is no way to take that out of a budget that will not affect the students. The fabric of the education and the network will be there no matter where you go here.”

Carol Klinger, board member, also said, “Our job is to decide what is less impactful on 1,600 kids. We need to make the best decision where fewer kids will be impacted. We are here for ALL 1,600 kids.”

The next regular school board meeting will take place 7:30 p.m. June 22 via Zoom.