District Still Faces Budget Shortfall Following Teacher Negotiations

The revised preliminary budget for the shows a $520,000 shortfall following .

The number takes into account a .41 mill tax increase, the maximum amount the state would allow the district to tax without . A .41 mill increase is equivalent to $82 per $200,000 assessed home value.

Business Manager Frosina Cordisco presented the calculations to the school board Monday night.

Teachers agreed to use their 2009-10 salaries for the 2012-13 school year in their new contract they voted for last month. The move will save the district $555,000 in 2012-13.

The district can also save $711,000 by not replacing seven professional staff members who are retiring—including an elementary level Spanish teacher, not replacing two retiring teacher aides and various operational cost savings.

However, the district must pay $1.1 million for higher PSERS employer contributions; $424,000 for higher health care costs; $2 million for the debt service; and $112,000 for higher utility costs at the new middle school buildings—among other costs—still making it difficult to balance the budget.

The administration will continue to find other operating improvements and look for ways not to replace retiring teachers. They will present a proposed preliminary budget at the next committee of the whole meeting on Monday, May 14.

Superintendent Patrick O'Toole told board members to look at the budget projections for school years beyond 2012-13. With a .41 mill tax increase in 2012-13 and a .42 mill tax increase in 2013-14, the 2013-14 budget is still facing a $3.68 million shortfall.

"We're not just looking at next year's budget, we're looking at budgets down the road," he said.

The highest the board is allowed to raise taxes next year is by 1.623 mills. That is equivalent to $325 per $200,000 assessed home value.

How should the Upper St. Clair School District balance the budget? Tell us what you think in the comments below.