Greensburg Salem to consider additional cost-cutting measures

May 22--Greensburg Salem School District is looking for more ways to cut costs in a budget year that is tighter than ever.

The school board approved a $42.7 million preliminary budget this week that would raise taxes by 2.06 mills, but the plan is subject to change before it is finalized next month.

Expenditures in the proposed budget are about $1 million more than they were in the 2014-15 fiscal year, but health insurance premiums, retirement costs and other mandated expenses are responsible for about $1.2 million in added costs, which means the district has had to find other areas to cut.

Even with the tax hike, revenue in the proposed budget would not cover all of the expenses.

Instead, the district would use $948,000 of its reserve funds, leaving an estimated $1.5 million.

District business manager Jim Meyer presented several cost-cutting measures that have been factored into the proposed spending plan.

He suggested shutting down one bus route and two van routes used primarily by private school students. Instead, those students would share a route with public school riders, at a savings of $125,000 a year.

The preliminary budget would eliminate a support staff position and one teaching position that will soon be vacated by people who are leaving the district.

Meyer said he is exploring more options to cut costs.

With reserve funds dwindling and pension costs rising, the district is swiftly running out of options, said Superintendent Eileen Amato. The district has already cut 17 teachers, three administrators and several other staff members since 2011.

The cuts in the preliminary budget will get the district through 2015-16, but next year it will need to make even harder choices, Amato said.

"We feel like this year is a Band-Aid, but next year we'll have to do a triage," Amato said.

Taxes have gone from 64.50 mills to 82.46 mills since 2004. The average property owner pays about $1,369 in school taxes annually.

Board members Ronald Mellinger Jr., Barbara Vernail, Frank Gazze, Lee Kunkle, Richard Payha and Stephen Thomas approved the preliminary budget, with Richard Guerrieri, Jeffrey Metrosky and Angela DeMarino-Tooch dissenting.

Metrosky said he could not approve a budget, even a preliminary one, that raised taxes while running a deficit.

"We're going to be broke if we keep going," he said.

Mellinger said he has major problems with the budget, but voted in favor of the preliminary version in the hope of moving the process along and making changes later.

"I don't agree with the expenditure and the revenue. I don't agree with either one of them," he said. "Deficit spending just doesn't work anymore."

Planning has been made even more difficult by numerous financial uncertainties, most of which will likely extend past the June 30 budget finalization deadline, Meyer said.

"There's a lot of balls that are being juggled now," he said.

The district is in the midst of negotiating contracts with all of its employees.

The board finalized a contract with custodial and maintenance workers Wednesday that holds existing employees to a three-year pay freeze while cutting the starting salary for custodians from $21.53 to $15. However, the district has to finish negotiations with teachers, administrators, secretaries and support staff.

Additionally, Gov. Tom Wolf's controversial 2015-16 state budget is unlikely to be approved anytime soon, which means school districts cannot be sure how much state revenue they will receive.

The preliminary budget will be posted online at greensburgsalem.org within the next several days, Meyer said.

Jacob Tierney is a staff writer for Trib Total Media. He can be reached at 724-836-6646 or [email protected].

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