Carlisle school district budget includes a proposed 3.2 percent tax hike

April 21--Carlisle Area School District plans to offset a projected $5 million budget deficit through a combination of a 3.2-percent tax increase and a draw down of reserves.

Pending board approval, the budget for 2017-2018 could also outsource to a private firm the hiring of new classroom aides and personal care assistants to yield an anticipated savings of $75,000 next year.

District staff recently presented an overview of a draft budget where $84.4 million in expenditures exceed $79.4 million in revenue leading to the shortfall.

The current plans call for a 3.2-percent tax hike -- the maximum allowed under the Act 1 Index -- that could generate about $1,275,000 in new revenue to apply toward closing the gap. The current tax rate is 13.6409 mills.

Draw downs

The plan also recommends the school board transfer $3,650,000 in savings from three reserve accounts to help cover the deficit.

The board had set aside money over the years into designated reserve funds to offset future increases in health insurance costs for faculty and staff and in the annual contribution the school district makes to the Pennsylvania Public School Employees' Retirement System.

The proposed transfer of $1.4 million from the retirement reserve will yield a projected balance in that account of about $1 million at the end of 2017-18, said Shawn Farr, district director of finance.

He said the plan to withdraw $750,000 from the medical reserve would leave about $248,000 in savings, and the proposed transfer of $1.5 million from the unassigned reserve would leave $6 million in that account.

The drawdown would leave the district with $7.25 million in its reserves. "There is concern," Farr said, adding that the district could only draw from savings for so long before funds are depleted.

"The only thing to get replenished is if we operate and have a surplus," Farr said. "If we do it, that money goes back into the general fund unassigned reserve."

As of June 30, 2016, Carlisle had $6.1 million in its capital projects fund for multiyear construction projects and $13.8 million in a capital reserve fund used for maintenance projects, Farr said.

Of the $13.8 million, $9.6 million has been set aside for technology improvements that have included in recent years the one-to-one initiative to equip high school students with laptop computers and the project to install fiber optic lines to better network district buildings.

Outsourcing aides

The proposed budget would outsource the hiring of classroom aides and personal care assistants for special education students through attrition. Administrators are not recommending the entire workforce be outsourced.

"We are not pushing anyone out," Farr said. The outsourcing will only apply to positions that become vacant during the course of the 2017-18 year.

In recent years, Carlisle School District has outsourced its substitute teachers and food service and custodial staff in an attempt to save money. The savings comes from removing employees from the district payroll to avoid having to pay sharp increases in health insurance and pension costs.

"We are looking to save money without impacting direct instructional programs," Farr said.

District administrators are proposing the school board enter into an agreement with Mission One, which is affiliated with Source4Teachers -- the outside contractor that provides the district with substitute teachers.

Historically, the turnover in classroom aides and personal care assistants is about 10 to 15 positions per year, Farr said. There are 120 aides and about 380 teachers employed by the district.

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Outsourcing aides and assistant is a new strategy for school districts, Farr said. "We want to see how this works out. As positions become vacant ... it's a starting point."

New hires

The draft expense budget maintains existing education programs and support services while adding the equivalent of five full-time teaching positions to the payroll.

For years, Carlisle school district has been phasing in an initiative to implement full-day kindergarten at its elementary schools. The proposed budget will bring full-day to Crestview Elementary School but would require the creation of 1.5 positions.

Currently there are two teachers covering three sections of kindergarten at Crestview, Farr said. One teacher has a morning and afternoon half-day session while a second teacher has an afternoon session.

If implemented, full-day at Crestview will be staffed by three full-time teachers covering three full-day sections.

The proposal also calls for hiring a full-time arts and humanities teacher at Carlisle High School to cover a large number of students moving through the grade levels, Farr said. He added two elementary school teachers are being added to head off enrollment and maintain appropriate class sizes.

Finally, the district is adding a part-time reading support position for either elementary- or middle-school-aged children who need the help, Farr said.

Administrators plan to present a formal budget proposal on Thursday, May 4. The school board may vote on May 11 to adopt the proposed budget for 2017-18.

The presentation of the final budget is scheduled for June 8 with a vote on adoption scheduled for June 15.

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