Saucon Valley School District, like many districts across the state, is feeling the budget impasse and crunch.

The school board discussed a nearly $3 million shortfall in its 2016-17 budget at the March 9 meeting.

The 2016-17 proposed budget amounts to $45.5 million. The board previously approved a resolution indicating it would not raise taxes beyond 1.24 mills. In the event the board approves a 1.24 mill tax increase, the district’s tax rate would jump from 51.74 mills to 52.98 mills.

Board member Ralph Puerta asked district Business Manager David Bonenberger if he anticipates the state budget crisis affecting the district into 2017-18.

“If this continues into next year, I think it will become a problem for us,” Bonenberger responded.

According to Bonenberger, the district’s fund balance currently stands at $15 million. He cautioned if the budget crisis progresses into next year the district’s “fund balance will not last very long.”

Board Vice President Susan Baxter commented on the strength of the district’s current fund balance.

“One thing we do have going for us, compared to almost every other school district, is our fund balance is extremely high,” she said. “That should help us out tremendously.”

“It will carry us for us for awhile, but the concern is if the state does not do any funding or if they do not fund the rest of the half this year, and we’re still doing this next year everyone’s going to be in a problem with cash flow,” Bonenberger stressed.

Bonenberger also spoke of a tax anticipation loan districts may apply for. The loan allows a district to borrow up to a certain level based on what its cash flow is. He cautioned, if the district does not have the additional funds to pay the loan back by June 30 it will result in a further cash shortfall problem.

The district must approve and submit the final 2016-17 budget to the Pennsylvania Department of Education by June 30.

Board member Edward Inghrim expressed his displeasure over the state budget crisis.

“The state constitution says they [Legislature] have to pass the budget by June,” Inghrim said. “They’ve ignored the constitution, but they’re still telling us we need to have a budget passed. Total hypocrisy.”