Payroll-related expenses will increase $2 million in DuBois school district

Thursday, January 26, 2012

DuBOIS - DuBois Area Schools Business Manager Sam Kirk Jr. said payroll and payroll related expenses alone will increase the expenses of the 2012-13 budget by about $2 million.
Kirk explained the budget process to the board and residents present at the DuBois Area School Board of directors meeting Wednesday, saying the district must have a budget approved by June 30. The preliminary budget must be done for May and be able available for 30 days for public inspection.
Kirk said the process starts in November when forms are sent out to elicit building and departmental budgets. Once received, the district office starts to plug these budgets into the district's budget.
"Last year, when we turned in our initial budget we had cut it by 10 percent back, so what they (building and department heads) turned into us has that 10 percent cutback from last year," Kirk said.
Kirk said thus far, of the increases he knows of, he is projecting an $800,000 increase in salaries if the staff stays the same with no retirements or attrition.
The PSERS contribution increased from 8.65 percent to 12.36 percent. Kirk said this is about a $1,000,000 increase, or four cents for every dollar of the $25 million payroll the district expends.
Social security costs add about $62,000-$80,000 to the budget.
"Just for payroll and payroll related benefits, we're looking at about a $2 million increase on top of this year's budget," Kirk said.
In terms of debt, the district is going to be seeing a balloon payment over the next couple of years, making the district's debt payment increase by about $530,000.
This payment will take projected increases in expenses in 2012-13 to about $2.5 million.
On Feb. 9, Gov. Tom Corbett will address the state and present his budget. Then, on Feb. 24, Kirk will be attending a webinar which will dissect the numbers and give a firmer idea of the amount that each district is getting.
The popular train of thought once the numbers are looking back at the district is to begin to analyze what expenses can be cut and how can more revenue be generated.
Board member Roland Bechtl asked Kirk for an estimate of how the district would end its current fiscal year in June.
To this, Kirk said the district has budgeted $54,377,000 and he believes the district will again be under budget by a few million dollars, meaning not all the money in the 2011-12 budget will be spent.
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Reported by Katie Weidenboerner, staff writer. Email: katiew@thecourierexpress.com.