By BRETT R. WHITLING
Clarion News writer
Clarion Area School Board gave its informal approval this week to a $13.7 million budget for the 2018-19 school year.
Funding for the budget is still a work in progress.
If the school board chooses to raise the real estate tax to the state index limit, a 1.97 mill increase, initial reports show the total for local, state and federal sources leave a $356,562 deficit for the upcoming year.
Typically the school has taken funds from its general fund to cover its deficit.
If voters approved a tax increase beyond the index limit, it would give the district an opportunity to balance its budget without dipping into its cash reserves.
Which option the district will take – the voter referendum or the DOE exemption application – has not been decided.
The informal budget report includes the cost of instruction, $8,335,736 and total cost for support services at $4,220,089.
Support contract
At special meeting just prior to the work session, the school board approved a new labor contract with its support staff that runs from July 1, 2017, through June 30, 2020.
The contract states support staff will receive a 2.25 percent average increase in 2017-18, a $14,744 cost to the district; 2.2 percent average increase for 2018-19, a $15,365 cost to the district; and 2.15 percent average increase for 2019-20, a $15,365 cost to the district.
Health insurance was set at $1,500/$3,000 qualified high deductible health plan with health savings account contribution by the district of 50 percent of deductible each year of the contract.
Employees will pay $1.50 per month toward administrative fees for HAS.
In total, this will result in a $40,614 savings to the district over the term of the agreement.
The total cost of the agreement over the three years is $18,283. This includes all wage increases and costs including the increase in contributions to the state retirement system over which neither the district nor the employees’ have control.