Pottsgrove board hears budget update showing $1.17 million gap, possible 2.62% tax increase

Business administrator Ron Linke told the Pottsgrove School District Board of School Directors that the district's adopted proposed final budget had increased its projected deficit after administrators added staff and services back into the plan.

Linke said the board had adopted a proposed final budget on April 22 showing a roughly $906,000 deficit that would have required about a 2.02% tax increase. Since then, administration added positions and line items'including a reach counselor, a special education teacher at the high school and at Lower Pottsgrove Elementary, summer technology help, a contracted drug-and-alcohol counselor and adjustments for unpaid leave'bringing the deficit to about $1,170,000, which Linke said equates to approximately a 2.62% tax increase.

The update matters because the board must adopt a final budget by June 10. Linke said administration would continue monitoring state budget action and any cost reductions, and would present another update at the May 27 meeting before the board votes on June 10.

Linke also broke down larger year-over-year changes: the district's current budget iteration is about $5,000,000 (roughly 6.5%) higher than last year's budget. He said new staffing requests account for about $486,000, other salary increases total about $1.1 million, and benefits increases include roughly $500,000 attributable to retirement and Social Security on those raises. Linke identified charter school costs, special-education outplacements, a new iPad lease and some maintenance projects as drivers of the $5 million increase.

Board members pressed for clarity on how much of the increase is structural (recurring) versus one-time. A board member noted that salary and benefits increases are recurring costs that will affect future years, and Linke agreed those are structural increases the district will need to meet with either increased revenue or cuts.

Linke said administration narrowed maintenance projects for next year to focus on Ringing Rocks and the middle school and planned to present updated figures at the May 27 meeting. He reiterated the final adoption date of June 10.

Ending: The board did not take final action on the budget at the meeting; trustees will receive another update on May 27 and are scheduled to vote on a final budget on June 10.