The Salisbury Township School Board finance committee met June 7 to review a year-to-date data analysis of the district finances and the proposed 2023-2024 final budget.

Chief Financial Officer Dawn Nickischer began the meeting with the year-to-date data analysis which revealed expenditures continue to run higher than at this time last year. She expects to see a decrease through May and June and then it will level out.

On the plus side, revenues appear to be 3% higher than at this point last year.

Director Thomas Spinner appeared to do some figuring of his own and wondered about the possibility of coming in $1.2 million under budget. Nickischer was reluctant to quantify a specific dollar amount; she expected revenues to be over budget and expenditures slightly under budget.

Superintendent Lynn Fuini-Hetten further explained there is a great deal of fluctuation from year-to-year in the amount of students in cyber/charter schools as well as special education placements which can vary widely.

The number of students needing special education services and the kinds of placements required can differ vastly from one year to the next which affects budget costs. When these types of services are reconciled in June, along with year end bills, summer program costs and payroll, the numbers will more closely match the $41 million originally budgeted.

Nickischer reported cash and investments stand at $29 million which is $14.5 million more than at this point last year. However, $6 million is earmarked for an outstanding bond which will be paid out when the invoice is received.

The proposed 2023-2024 final budget was then presented to the board replete with a detailed budget booklet to identify key content as well as a one page document previously requested by the board which points out specific budget drivers in an effort to communicate budgetary changes for the school community.

At this time the governor’s budget has not yet been finalized so the proposed final budget includes a conservative 50% of the amount the district anticipates receiving from the state. Other unresolved budget items that can have an effect on the budget include any additional employee retirements, fluctuations in charter school enrollments and the ongoing negotiations with professional staff.

The board had previously discussed creating a separate line in the budget to set aside $15,000 for the purpose of funding capital projects. After extensive research, Fuini-Hetten and Assistant Superintendent Kelly Pauling were able to use grant funding to cover some budget items thus allowing a sum total of $24,000 to be redirected to the capital fund for the 2023-2024 final budget.

Based on the median residential assessed value of $186,700, the proposed 4.1% tax increase - the highest allowable increase in accordance with the Act I index, amounts to a per household tax increase of $167. This increase is expected to generate $1.8 million in additional funds.

Board members took a close look at each line of the budget booklet prepared by Nickischer and were given the opportunity to ask questions to clarify their understanding of what expenditures are included on specific line items. They also called for explanations of any significant increases or decreases year over year.

The last document in the presentation was the one page summary of the major budget drivers which revealed that salary and salary related benefits made up 68% of the budget with a $530,000 increase mainly due to an 11% increase in insurance.

Special education funding saw an $810,000 increase owing to an increase in student needs as well as increased costs imposed by the intermediate unit.

Increases were also seen in debt services which amounted to $325,000 for the middle school energy savings project.

Lastly, charter school tuition for the 138 students who attend a charter/cyber school increased to $469,000. Rates for charter students in regular education amount to $15,363 per student and $30,838 for non-regular education students.

The next finance committee meeting will be held Aug. 2 immediately following the operations committee meeting which begins 7 p.m. All meetings are held in the administration building, 1140 Salisbury Road.