Without budget, EL faced grim financial future

BY C.J. MARSHALL
Wyoming County Press Examiner

Elk Lake Superintendent Ken Cuomo acknowledged on Thursday (March 17) to the school board that the districts financial situation grows grimmer each day that the state budget remains in limbo.

Since the meeting, Gov. Tom Wolf announced he would allow the 2015-16 budget legislation to become law without his signature after a nine month impasse.
Cuomo took time at the end of an hour-long meeting to address what he termed “the elephant in the living room” to address “very serious concerns” about the district reaching the end of the school year on June 30 without running out of money.

He asked that he be permitted to explore various possibilities obtaining the necessary financing – which he would present at the April 6 meeting.

Cuomo said he’s been looking at transferring money from various accounts – such as the medical fund and the dental fund – to the general fund in order to prevent disruption of services in the district; but only if they have no other choice.

He also pointed out that earlier in the meeting he had asked for and received permission to use money from the elementary principal’s fund to pay for a sixth grade trip to Gettysburg, because money is growing so short in the general fund.

“It’s a pretty tough situation at this point, and my number one concern is the impact it could have on the kids,” Cuomo said. “I’m trying to find every penny I can to get us to June 30.”

Cuomo said the district is anticipating receiving a special education payment as well as one for transportation, but that will be it. The administration is straining to find the money necessary to keep the schools operating and special action by the board will probably be required to move the money around. After the state budget is passed, the district will replace the money taken from the various accounts to the general fund.

The superintendent laid the blame for what is going at the feet of both the state legislature and the governor. He said that the lawmakers and their staffs are not feeling the effect of no state budget – that they still continue to draw their salaries.

He conceded that Gov. Tom Wolf has voluntarily agreed not to take a salary during the impasse.

“But if the governor lost 60 percent of his revenue from his cabinet-making business, how long would he remain in business,” Cuomo said.
Board member Ann Teel said she is “horrified” by the situation.

“How do they expect us to run the schools, pay the teachers and educate the kids,” she said.

It was noted during the discussion that part of the problem is a vast majority of Pennsylvania’s population has not yet been adversely affected by the lack of state budget. Only a small minority – such as a few of the school districts – have been struggling because Harrisburg remains deadlocked. It was the consensus of the board that this would definitely change if Elk Lake and other districts had to shut its doors due to lack of money.

Another point raised is that many people are under the misconception there is still plenty of money available because of the natural gas royalties – which is not true; that money has already been used in support of the district.

“The gas money has been used to keep the millage down as low as it is,” explained board President Arden Tewksbury.

Tewksburg later explained after the meeting that a couple of years ago, the district was receiving approximately $25,000 a month in gas royalties. This year, Elk Lake has realized an average of $700 per month.

In other business, Cuomo informed the board that, as of July 1, the district will be incorporating facility usage fees to people wishing to use such facilities as the auditorium and the gym.

Although Elk Lake had previously only charged to use the swimming pool, Cuomo explained that it costs the district money – such as paying for support staff – each time any facility is used. The business office will process the fees, and also provide information on how it will cost to use each facility.

In addition, the board:
*approved the hiring of the law firm of Sweet, Stevens, Katz and Williams to represent the district in a Penns Best Tax Assessment Appeal. Penns Best applied for a reduction of its property taxes in Wyoming County, which was turned down, and has appealed the decision to the courts. Elk Lake receives 64 percent of the $31,000 per year from those property taxes, and would lose a considerable amount of money over the years if they are reduced.

*approved retaining Policy 249 concerning bullying.

*Approved the purchase of an RFP LAN Wireless Upgrade from Frontier Communication to provide a wireless system through the district for a bid of $55,929. But because of money available through the E-Rate program, the actual district cost will range from $11,185 to $17,779.