Line Mtn. Approves Preliminary Budget

MANDATA - On a 9-0 vote, the Line Mountain School District Board of Directors passed its preliminary 2015-16 budget.

But residents are warned the budget may see significant changes before the June 30 deadline to finalize it.

The budget shows a $425,704 increase in revenue and a $929,270 increase in expenditures. The expense over revenue will total $1,753,108.

Superintendent David M. Campbell said one of the biggest increases in the budget was the cost of health insurance. High usage of insurance within the district caused insurance companies to raise rates, Campbell said.

The preliminary budget shows an increase of approximately $850,000 in medical insurance rate increases over last year's budget. The next large increase is to the state pension plan contributions at $330,000.

Sean Hughes, a representative of the district's insurance broker, BSI Corporate Benefits LLC, told directors the insurance company paid out $1.40 for every $1 the district paid in insurance. While the district's insurance bill came to $2.2 million, the insurance company paid out more than $3 million, he said.</p>

As a result, the district's insurance cost will rise 19 percent next year. Hughes called it a "huge challenge" to negotiate the increase down this low, and said he initially was offered increases in the 20 percent range.

Campbell said the district expects an increase of slightly more than $217,000 in state funding based on Gov. Tom Wolf's proposed budget. The district could also see more than $100,000 in savings if a proposal by Wolf to curtail charter school fees is approved.

"That would save our district, using this year's numbers, $111,000," Campbell said.

A worksheet provided at the meeting shows the district will likely raise taxes by 1 mill to accommodate the deficit. The maximum the district can raise taxes by law is 1.88 mills.

The preliminary budget is available for review by the public at the district office.