Armstrong School District directors question reopening of Elderton High

May 25, 2010 Leader Times Article

MANOR — As directors pore over the Armstrong School District's proposed 2010-11 budget, two board members questioned how long it would take before the impact of reopening Elderton High School would be felt by taxpayers.


While there is no tax increase planned in the coming school year, Directors Joe Close and Chris Choncek said they felt that the added expense of operating Elderton High School would lead to a tax increase in the coming years, as well as the added debt of a possible renovation project at the school.

"Right now, as we are looking at this, there is a projected ending fund balance next June of $3.95 million and the expenses are increasing by almost $3 million," Close said. "How long do you think we can continue to operate like this before we have to raise taxes to pay for that school?"

Close said the district can expect a large tax increase in the 2011-12 budget because of the continued increase in expenses due to Elderton's reopening.

Choncek asked Business Manager Eric Brandenburg for a cost estimate to reopen the school and was told the estimate is $3.5 million. Brandenburg said he did not have the cost breakdown available at Monday's agenda-setting meeting, but said it would be made available.

Choncek said he was against using the fund balance, which is expected to be $6.6 million at the end of this fiscal year, to balance the budget, saying that the district had been advised in the past against the practice.

Under the proposed budget, Brandenburg estimated projected revenues at $85.46 million, while expenses are expected to be $88.17 million. The district would use $2.7 million of the projected fund balance to cover the difference.

Brandenburg said the district can expect about $575,000 in increased basic education subsidy from the state and about $310,000 in savings in a reduction of administrative staff. The district will see about $3.57 million in slots revenues that will result in tax reductions of about $300 for approved property owners. There also are 22 staff retirements.

The district expenses will increase by an unspecified amount due to increasing the number of teachers from 467 to 493, along with $1 million in health-care expenses, $611,000 in textbook purchases and $750,000 in retirement contributions, Brandenburg said. The expenses are coupled with a $1.2 million increase in teacher salaries.

Directors Jim Solak and Rose Stitt argued that the fund balance, as well as other expenses, are being looked at to find additional ways to save money.

"Based on the Lenape budget that was passed last week, we are looking at an additional $417,000 that can be added to the fund balance," Solak said. "There could also be an $800,000 savings if the board chooses to close Kittanning Township Elementary School."

Close used Solak's comments about closing the elementary school to challenge his position on Elderton High School, saying, "The decision to close Elderton was made because it would save money and we were told it was wrong, but now Solak and Stitt are saying that saving money by closing Kittanning Township is a good thing because it saves money."

Stitt responded by saying she doesn't want to close the school, but she fears the board's lack of stability would result in those students being "tossed around to whatever school has room for them."

"But I would rather see those kids be able to go to one school, kindergarten through 12th grade in Elderton, than have them just bounced around wherever they fit," she said. "We can't keep a school open with just 150 kids in it."

Her comments were met with criticism from audience members, saying she voted to reopen Elderton for about the same number of students. The school is expected to reopen in August with about 250 students in grades 7 through 12.

Directors are expected to vote on the preliminary budget on Thursday during the board's voting meeting. The preliminary budget, once approved, will be made available for public review until final adoption, which is expected at the June 28 meeting.