Reading PA. School District Has $52 Million Deficit: Massive Cuts Needed

[JPZenger]

http://readingeagle.com/article.aspx?id=375711

Excerpts:

"It's so bad that the district might have to consider taking drastic steps: - from closing schools, to laying off teachers, to freezing wages, to cutting kindergarten to half-day...

The nearly $53.2 million gap assumes the district raises property taxes by 2.8 percent, the most it can legally raise taxes. But raising taxes to the maximum, which should generate about $570,000, would do little to close the huge budget deficit.

The district will start off behind the eight ball, as spending will soar past the current year's budget. Based on Brubaker's estimations, the district will have a deficit of nearly $11.9 million by the end of the school year. The district spent far more than it budgeted in areas like utilities ($460,000), health care benefits for retired employees ($2.4 million), debt service ($4 million), legal fees ($731,000) and charter school tuitions ($4.2 million). And all of those costs will likely continue to rise, Brubaker said.

The district, like all districts across the state, will also feel the impact of increased contributions to the Pennsylvania School Employee Retirement System. The state is requiring all districts to hike the amount they put into the system, which for Reading means an increase of just under $4 million. Brubaker said his estimates show total state funding will drop by about $2 million next year, and federal funding will drop by more than $6 million."

[Scuba]

1. Reading PA. School District Has $52 Million Deficit: Smart Cuts and New Revenues Needed