District financially sound, Gabriel says

May 19, 2010

By PATRICK E. LITOWITZ
plitowitz@ncnewsonline.com

The New Castle school system’s 2010-2011 budget process started in February and ends next month.

Here’s the abbreviated version.

•No tax increase
•Budget set at $39.9 million, up $1.4 million from this year
•Sixty-six cents of every dollar the district receives goes toward employee salaries and benefits
•Seven teacher positions eliminated through early retirement. Two teachers furloughed.
•District’s fund balance to increase $1.2 million for an overall total of approximately $9 million
•Athletic program requires $435,000 from district’s general fund
•Food service program self-sustaining

“We are financially sound,” Superintendent George Gabriel said. “Academically, we are preparing our students not just for the local and state marketplace, but for the global market.”

Last night, Gabriel and his administrators presented the second of two budget work sessions. The board will conduct a special meeting at noon May 25 to vote on the preliminary budget.

The district has maintained a tax rate of 17.27 mills for seven consecutive years. That comes despite a $19 million decrease in the value of district-based properties during an eight-year period.

Business manager Joseph Ambrosini said a 100 percent collection rate would bring in $9.3 million. In reality, the district collects between 80 percent to 85 percent of those funds.

Property taxes are the school system’s second major funding source. The state provides $23.8 million.

Gabriel said the district’s financial focus is the continual review of staffing needs.
“That’s where the money is in — your professional staff,” he said.

However, economics were not the reason two teachers are scheduled to be furloughed. A declining enrollment was the culprit, Gabriel said.

Because of contractual obligations with the teachers union, the two instructors will return next year as day-to-day substitute teachers. They will not see a pay reduction.

The quality of educational instruction will not suffer, said Terence Meehan, assistant to the superintendent.

“We’ve enhanced our programs tremendously,” he said. “Our students have an opportunity that doesn’t exist in other schools.”

Sixteen courses have been added on the secondary level during the past three years. Meehan also pointed to the district’s SAT preparation program conducted in cooperation with the Princeton Review and the high school’s partnership program with Seton Hill University.

“We’ve eliminated teachers and maintained classroom sizes,” he said. “We’ve just worked smarter as far as the way we’ve scheduled people and use the staff we have.”

Based on an enrollment of 3,350, the district will spend an average of $11,766 per student in the 2010-2011 school year.

Sports programs attract the most students in terms of extracurricular activities. However, they are poor funding sources. Of the district’s 11 varsity sports, football along with boys and girls basketball are the primary moneymakers.

The three squads are expected to collect $47,000 in admissions next season. The district will provide $435,000 to supplement the programs.

Unlike sports, food services is self-supporting operation. Costs are expected to run $1.7 million, with revenues pegged at $18,000 under expenses. The difference will be made up from the food service’s fund $140,000 balance.