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Budget Information and Items Under Consideration by Shikellamy School District

posted May 1, 2020, 2:37 PM by Bethanne Zeigler

Budget Information

  • Budget deficit for 20-21 is $2.5 million at best

  • The state has said they will be flat funding school districts or worse for 20-21 (this is a minimum loss of approximately $300,000 dollars from Governor Wolf’s proposed budget)

  • The COVID-19 situation will have a negative impact on Earned Income Tax collections and could result in an additional $500,000 to $1 million dollar loss in 20-21

  • There is proposed legislation to freeze property tax increases for the 20-21 school year

  • Even if property taxes are not frozen for 20-21, the district would only be permitted to raise taxes as prescribed in Act 1.  (Act 1 does not allow districts to raise taxes above the index, and the current index is equal to 3.39 mils.)  This would account for $576,300

  • A mil is valued at $170,000 in Shikellamy

  • Even if the district chose to use the fund balance, we could only sustain operation for two to three years.

  • When a district runs a deficit, that deficit is taken out of the fund balance

  • The district could only balance the budget for 2 to 3 years using the fund balance

  • The district ran an approximate loss of -$951,000 in 17-18 and -$1.2 million in 18-19

  • Staffing reductions are being considered to reduce the deficit for 20-21

  • Even with proposed staff reductions, class sizes will not be any larger than some elementary classes during the 19-20 school year

Elementary Restructuring Considerations

  • Restructuring of the elementary buildings has been discussed for many years at Shikellamy

  • There will be no building changes for the 20-21 school year

  • Building changes are being proposed for the 21-22 school year

  • With a restructuring in 21-22, class sizes will not be any larger than some elementary classes during the 19-20 school year

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