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Ambridge Faces Budget Deficit in 2015-16 School Year

4/19/2015

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Ambridge Area residents could face an increase in school taxes as officials work to cut down a budget deficit.

Business Manager Minnie Baker presented a preliminary $45.479 million budget outlook last week for the 2015-16 school year, which includes a $2,565,339 deficit with a maximum 1.922-mill increase as allowed by the state.

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If the board adopts it, the increase would bring the district’s total millage rate to 75.861 mills. Without a tax increase, the district is facing a larger $3,054,521 deficit for the upcoming school year.

In presenting the budget outlook, Baker said many of the budget challenges are fixed expenses, including $27 million in teacher’s salaries and benefits, as well as other increases and pending teacher negotiations.

Other increases include healthcare; state retirement, or PSERS, from 21.4 percent to 25.84 percent; and debt service payments at $4,914,616, which Baker said has gone down due to refinancing, but should not be more than 10 percent of the total budget.  

"We're there," she said. 

The preliminary budget also includes $450,000 in a lease payment toward the expense for HVAC renovations at the junior high school. The district may decide to float a bond to cover the entire $6.5 million cost.

“There’s a lot of unknowns out there,” Baker said.

The public is invited to attend a budget workshop at 6 p.m. Wednesday, April 29.
 

In other business, the board:

  • Acknowledged the appointment of Tom Turney as the interim tax collector for Baden Borough effective March 24 for real estate and per capita taxes.The district has requested Turney provide a minimum of $3 million bond insurance. 

  • Recommended the administration be authorized to issue a request for proposals for solicitor services for 2015-16 school year, effective July 1. 

  • Approved Huckestein Mechanical Services, Inc. be approved to continue providing full preventative maintenance services with parts and labor at a cost of $119,532 effective March 1, 2015 for the high school and field house, junior high, three elementary schools, and Ridge Road Central Receiving. The district has an option to extend the agreement for a second year at a 2 percent increase. 


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