District surveys residents about cost-cutting measures

From the BCCT.

District surveys residents about cost-cutting measures
Posted in News on Monday, February 16th, 2009 at 4:07 pm by Joan Hellyer

Bensalem residents can make suggestions about ways for the school district to save some money over the next few years in an online survey.
Everything except salaries and benefits is up for consideration, according to a letter from the district’s superintendent posted at www.bensalemsd.org.

“While we expect a slight reduction in the cost of goods and supplies, we do not anticipate a decline in the area representing most of our budget, salaries and benefits,” Bensalem Superintendent James Lombardo said in the letter. “Given that we are a business that relies primarily on the skills of people, we do not foresee large cost savings in most expenditure areas.”

The district’s 2009-10 projected budget is estimated at $114 million. Of that amount, about $74 million will go toward salaries and benefits, according to district officials.

The budget projects a $170 average property tax hike to help cover a $7 million revenue shortfall. The district also could use as much as $3 million from its savings account, known as the fund balance, to help cover the budget deficit. The fund balance has about $11 million in it, officials said.

Despite the revenue shortfall, Bensalem is not experiencing some of the “significant budgetary gaps” neighboring districts are grappling with because of “excellent planning” by district officials, Lombardo said in the letter.

However, given revenue trends and problems with the state’s reserves “we anticipate a much grimmer picture in the next two years,” the superintendent said.

Lombardo points to several financial issues as cause for concern including revenue declines from sales taxes and real estate and interim taxes.

In anticipation of the continuing economic downturn, district officials already have taken several cost-cutting steps, including an immediate freeze on non-essential travel or conference expenses not already approved and requests to staff to reduce paper consumption and energy usage, Lombardo said in the letter.

School board members recently suggested Lombardo survey the public after he told them he sent a similar letter to district staff about ways to save money.

The superintendent’s correspondence to the community includes a link to the cost-savings survey.

District officials will collect the community’s feedback for a few weeks and then forward it onto the school board for consideration, the superintendent said.