Proposed State Funding Cuts Would Deepen School District's Budget Deficit

If enacted as proposed, Gov. Corbett’s proposed $27.3 billion budget makes an even bigger hole in the budget than previously anticipated.

Officials announced in January that the district was facing a  in its $86.9 million spending plan, which could result in program cuts and teacher furloughs. Now, with Corbett’s preliminary budget taken into consideration, the budgetary picture is bleaker and the hole in Hatboro-Horsham’s 2011-2012 spending plan is looking more like $2.7 million, according to Robert Reichert, the district’s director of business affairs.

“I think we have to prepare for the worst in case it comes to fruition. (Corbett) is going to have to come up with a balanced budget,” Reichert said. “It would be foolish if we didn’t prepare for he worst.”

The worst means a state funding reduction of approximately $813,000 in several areas, including a $230,000 cut in the district’s accountability grant funding which helps to fund coaching positions; a $130,000 loss in charter school reimbursements; and a $453,000 reduction in the state’s social security subsidy.

Hatboro-Horsham officials were prepared for Corbett’s much-discussed slash in basic education funding, which would reset district allocations to the 2008-2009 levels. In this area, Reichert said he projected a $500,000 reduction, but would see, as proposed, a $415,000 cut. That, coupled with the aforementioned funding cutbacks, amounts to an overall $728,000 decrease in state funding.

“What the governor did is a piece of the problem it’s not the whole problem,” Reichert said.

Compounding factors include significant revenue decreases stemming from assessment appeals and waning interest levels. The Act 1 index limits the district’s ability to raise taxes by only 1.4 percent, which Reichert said amounts to roughly $800,000.

“It doesn’t paint a very pretty picture,” Reichert said. “We do a lot of things to be creative and improve efficiencies, but when we have revenue challenges and expenditure challenges as significant as we have, inevitably you’re going to have cut programs and staff.”

Jackie Anderson, president of the Hatboro-Horsham Education Association, the union representing the district’s more than 400 teachers, said she hopes to work out a retirement incentive for teachers. Superintendent Curtis Griffin has “expressed an interest,” Anderson said, adding that details would need to be finalized.

“We might be able to save some of the jobs,” she said. 

Reichert said the district may not know until summer “what positions and what people will be affected” by potential furloughs. Anderson said Griffin told her the same.

The school district’s other budgeting challenge involves the ongoing teacher contract negotiations. This will be the third budget cycle year without a contract, Reichert said.

“I can’t not budget for an anticipated (pay) increase or settlement,” Reichert said. “From my end, you have to anticipate to some degree where an actual settlement may be. And, in years like this where we have such a financial challenge, we’ll be budgeting on the conservative side.”

Anderson said some negotiation “adjustments” may be made in light of the governor’s budget and projected funding cuts. But, Anderson, a district teacher of 41 years, said she remains committed to getting teachers a “fair deal.” 

“We have never been hard-nosed, so to speak,” Anderson said. “We really always make adjustments based on situations and proposals.” 

When those adjustments could formally be made was up in the air Friday as Anderson said the union and the board had not yet scheduled its next negotiating session. Anderson said the next session probably would not be held for a “few weeks.” Sign-toting outside of the school board meeting on Monday and, during the meeting Anderson claimed that the board refused to negotiate.

Another item on the table – and uncertainty for the 2011-2012 budget – involves whether teachers will receive retroactive pay and for what portion of the nearly two-year contract stalemate.

“It’s something that we have to anticipate to some degree,” Reichert said. “Knowing to what degree is almost impossible to figure out.” 

Anderson said retroactive pay has been a discussion item at negotiations.

“We always try for retroactivity,” Anderson said. “The longer you go without a contract, the harder it is to get retroactivity.”

Hatboro-Horsham's budget is slated for adoption on June 20, Reichert said. Between now and then, he said updates will be provided at school board meetings, possibly as early as the next meeting on March 21.