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Montoursville Area School District faces $2 million shortfall

Montoursville Area School District’s top official told the school board Thursday it will take drastic measures to fix the district’s budgetary problems over the next two years.

However, Superintendent Christina Bason said she’s optimistic that its financial condition will get healthier if everyone works together.

Bason said the financial hurdles are not unlike those of many school districts in the state facing ever-increasing expenses at a time government revenues have decreased.

The district is faced with a 2017-18 budget with a deficit of $2 million, she noted.

With the deadline for that spending plan coming up June 30, the board will have to decide how to best plug that financial hole.

“We have to look at a variety of methods that are acceptable,” Bason said.

She noted that many school districts including Montoursville in the past reaped the benefits of the federal economic stimulus money, but when those dollars stopped in more recent years, the revenues started to dwindle.

Districts also took a big hit to pay ever-higher pension costs.

Right now, the district would not be able to pass a balanced budget with revenues at $28 million and expenses at $30 million.

Bason, formerly employed as Berwick School District’s business manager, noted that fund balances can be used for short-term revenue needs.

However, Montoursville’s fund balance is just over $700,000.

“You only have two options. Raise taxes or decrease expenses,” she said. “We are trying to develop some strategies.”

Bason acknowledged that the district is losing three administrative positions.

Two principals are retiring at the end of the school year, and the board accepted the resignation of curriculum director Kim Sauers at Thursday’s meeting.

Pamela Nelson, 225 Bennett St., Montoursville, questioned if the district is going to replace the administrators.

Bason said nothing has been decided.

“Whether we replace the principals is up to the board,” said school director William Ruffing. “It’s not a done deal. Everything is on the table.”

In other matters, the board approved the purchase of video cameras for the high school from KIT Communications, Annville, at a cost of $85,943.

Starting at $2.99/week.

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