Wyoming Area School Board approves preliminary budget that exceeds tax limit

EXETER — Wyoming Area School Board approved a preliminary budget Tuesday with a 4.2% property tax increase — higher than the state limit of 3.5% — yet still projects a shortfall of about $900,000. The difference will be made up by further draining a fund balance expected to be down to about $2.1 million at the end of June

Business Consultant Tom Melone said the budget will bring in about $36.8 million and spend about $38 million. He calculated that the district should be eligible for a state exception to the annual tax hike limit known as the Act 1 Index. Surging special education costs should qualify the district to raise taxes above the limit enough to raise an additional $560,000, though the preliminary budget only increases total tax revenue by about $107,000.

The district has also dropped its contingency fund from $225,000 to $25,000, and has been negotiating some savings in annual contracts. For example, the board renewed three separate agreements with Dehey McAndrew for consulting services to make sure the district complies with IRS and Department of Labor regulations related to retirement benefits. The total cost was an annual fixed fee of $10,115 plus some variable fees depending on work. Melone said that, in the last week, the company agreed to a reduction of about $1,700 on the three contracts.

Solicitor Jarrett Ferentino also noted the board approved a contract with Clearvu School Services, LCC, for some food procurement work that had been done by a different contractor last year at a cost of about $2,300.

Melone said the budget does not include any pay increases for teachers or support staff. Both unions have contracts that expire this summer.

With Nick DeAngelo absent the board vote 5-3 in favor of the preliminary budget. John Marianacci, Carmen Bolin and Lara Best voted no. The board has until the end of June to make any changes and approve a final budget.

The board also voted to accept a bid for roof work that had been re-bidded. The low bid came from from J.M. Young & Sons Inc. of Belleville at a cost just above$1 million. The work includes partial roof replacement at the secondary center and roof coating at the primary center.

Reach Mark Guydish at 570-991-6112 or on Twitter