Brandywine board approves 3% local pay increases; CFO warns of temporary tax-receipt shortfall

The Brandywine School District Board of Education on Sept. 15 approved salary-schedule increases for several non‑union employee groups and accepted the district—s August financial report while the district—s chief financial officer warned of a possible near-term cash shortfall.

The approved salary changes raise the local portion of certain salary scales by 3% and apply a 3% increase to combined scales for other groups, following a 2% state increase already reflected in some state-funded columns. "These groups have already received the state increase on their salary scales, so the state column has already increased by 2% from the previous year," Mr. McCoy, the district—s chief financial officer, said. "The proposed increase to the local portion of the salary scale is 3%." The District Finance Committee approved the increases at its Sept. 10 meeting.

The salary-schedule vote passed during the meeting. Board members then reviewed the August monthly financial report. Mr. McCoy told the board the district had received about $4.2 million in current-expense tax receipts at that point in the fiscal year, compared with roughly $946,000 at the same time the prior year, a timing variance that he said should even out. He warned, however, that New Castle County had contacted mortgage companies and escrow processors and instructed them not to send payments to taxing jurisdictions until taxpayers received new adjusted tax bills. "They told them not to send payments to school districts until they have received the new adjusted tax bill," McCoy said, adding county officials expected those bills to mail around Oct. 15.

That change could reduce the district—s near-term cash and the interest income the district earns on receipts. Mr. McCoy noted the district could use Division 1 state monies to cover cash-flow needs if necessary, as authorized in a recent special session. The board approved the financial report "subject to audit." The board did not vote on any emergency borrowing at the meeting.

Discussion-only items included board questions about competitiveness of the salary scales and details for specific categories (for example, cafeteria manager staffing tiers). The board requested follow-up projections on when the district—s projected ending fund balance would reach the board—s target given the revised tax-bill timing and current interest-rate expectations.

The board approved the salary schedules and accepted the financial report during roll-call votes recorded in the minutes. The district will provide updated cash-flow projections and projections tied to the recently approved referendum tax-rate changes at a future meeting.

The actions affect district budgeting and operational planning as the school year proceeds.