Bethlehem Area School Board held a combined committee meeting April 20, covering changes to the current year’s budget as well as the budget for 2020–21, and new coronavirus-related expenses for critical facilities projects slated for the upcoming summer.

Budget shortfall

CFO Stacey Gober and Superintendent Dr. Joseph Roy’s budget update for 2020–21 included “substantial reductions in expenditures in anticipation of a substantial reduction in revenues,” as Dr. Roy noted. The priorities for the district remain the same: literacy, technology and student support. “We’ve worked to preserve the progress that we’ve made,” Dr. Roy said, “but we’ve reduced […] things that would have been the next step in these initiatives […] at the middle and high school levels.”

“Overall, the economic impacts we’ve realized as a nation have had a dramatic impact on our ability to move forward for the continued initiatives for the next school year,” Gober remarked. “We have a net reduction of $4.1 million from the original January preliminary adoption. We have elected to reduce the charter school tuition expense. I say this with some caution, because our enrollment has leveled off […], but I raise the concern that, depending on how this situation unfolds, should parents feel the need to enroll their students in a cyber charter school – we’re advocating that they use the BASD cyber academy, but the risk is that they might choose a cyber charter, which would impact our tuition expense.”

Dr. Roy noted several items “moved to the shelf” for next year, including expanded mental health services, which may be offset by federal grants to community partners of the district; the science of reading adoption; language arts professional development; dual enrollment; and expanded Chromebook replacements.

Asst. Superintendent Dr. Jack Silva explained that with the students missing roughly 30 percent of their in-classroom instruction this year, Reading by Grade 3 (RBG3) goals will be extended, and elementary schools will focus on solidifying the literacy skills learned this year.

“It’s not just this year’s budget,” Dr. Roy said, “but trying to position ourselves for the next few years [of potential recession].”

Gober noted that $9.2 million in budget reductions were already in the works prior to the coronavirus hitting the US, but cautioned that some large programs, such as additional classes for students with autism, will need to be funded; for the next academic year, BASD anticipated $5.1 million less revenue, leaving a deficit of $6.6 million. “With the extension of the federal income tax filing date […] we’re going to have some folks who are just not going to be able to make that payment, and those revenues for those who file July 15-which would have been April 15-those deposits may not be reported in the current fiscal year, but in the 2021 fiscal year. We’re anticipating a little over a million-dollar shortfall in the current year. We’re paying all of our staff. The savings we’re realizing through the remainder of this year are not enough to offset the revenue loss.

“All of the income that people are not earning in the 2020 calendar year, that will be on their April 2021 tax return, is going to have an impact on our revenue stream,” Gober noted. She also pointed out the very low interest rates with no increase in the near future, as well as the loss of business taxes as businesses close due to the government-mandated shutdown. “A lot of these economic indicators are quick to fall, but slow to recover.”

According to Gober, BASD has applied for a competitive grant of $384,000 fromthe state that could be used to make up part of the shortfall, as well as federal CARES money – probably between $3 million and $4 million for BASD – but the former is by no means guaranteed, and the latter will be coming from the federal government to the state and might be used as part of its own education budget contribution to the district, rather than passed directly to BASD to fill the district’s budget hole.

Both Gober and Dr. Roy commented that regardless of budget cuts that BASD is able to make for next year – and reductions in expenditures this year – per-student payment rates to charter schools for next year are based on a formula using the current year’s months’-ago budget, and will not decrease unless legislation is passed in Harrisburg.

Tax increase?

Board president Mike Faccinetto asked whether it would be prudent to increase taxes by a small amount this year, in order to reduce the percentage increase the following year, particularly with the potential of multiple years in a row with no contributions to the fund balance. Gober responded that the uncertainty about the CARES funding – how much will come to BASD, and how the district may use it –makes it challenging to make projections about the 2021–22 budget. Board member Craig Neiman suggested that the board consider a “small” tax increase of 1 percent to 1.5 percent, and board members Dr. Karen Beck Pooley, Dr. Dean Donaher, Shannon Patrick, Dr. Kim Shively agreed. “We’re likely going to be spending less next year than this year,” Dr. Beck Pooley noted, “but we’ll be taking in a lot less revenue.” Dr. Donaher suggested that the board consider millage increases of 0.5 percent, 1 percent, and 1.5 percent.

Roy said he’s “very concerned about a tax increase, even a small one, in part because of the message it sends. A lot of people in our community are just starting to feel the pain, and we have to ask ourselves what a tax increase would generate in revenue, compared with the perception it would generate.” Dr. Roy suggested that the board look at the fund balance and money earmarked for PSERS rate stabilization.

The next budget meeting will occur May 4 and will include updates based on information from the federal and state governments regarding CARES funding. Tentative final budget adoption will take place May 11, and final budget adoption will take place June 15.

The district’s mission for the next five years, much like the budget for the next academic year, includes elementary and secondary literacy objectives, personalized learning through BASD Empower (underpinned by technology), college and career readiness, and the implementation of a comprehensive behavior health model. The strategy document prepared by Dr. Roy and his team cites all students reading on grade level by the end of third grade as the district’s top academic priority; intensified literacy work, using the Acadience and StudySync programs, will also be a focus for secondary ed. Enhanced community partnerships, including literacy work with local pre-K providers, will be part of an overall literacy strategy. The strategy document is available online (https://go.boarddocs.com/pa/beth/Board.nsf/Public); Dr. Roy noted that this document has not been edited since mid-March, however, so it is more useful as a long-term guiding document than for the near term.

Other coronavirus-

related changes

Although Gov. Wolf decreed the cessation of all “non-life-sustaining” construction due to the coronavirus pandemic, he later clarified that public school construction projects are exempt. The HVAC renovation projects at Asa Packer ES and Spring Garden ES, as well as masonry repairs at Northeast MS and security camera installation at BASD Stadium and the Ed Center, will continue. There will be added costs, however, including $49,000 at the two elementary schools for enhanced restroom facilities and certified industrial hygienists to support CDC and OSHA policy enforcement at worksites.

Coronavirus-related school closures caused the district to make several other changes, including waiving the 60-hour community service requirement for graduating seniors; providing 500 T-Mobile Wi-Fi hotspots to qualifying families at a cost of $42,000; and changes to the academic calendar reflected online (https://www.basdschools.org/calendars#calendar1/20200409/month), including shifting the last day of instruction from June 9 to June 5 to give teachers additional time to wrap up the school year, including possibly working on a limited basis in their classrooms. These items were to be finalized at the April 27 board meeting.

Faccinetto asked Silva for clarification on the progress of the Comprehensive School Improvement plan at Broughal MS; Dr. Silva responded that the state Dept. of Ed. has waived Broughal’s report for the final quarter of this school year.

Roy and Silva have been working with Liberty HS principal Harrison Bailey and Freedom HS principal Michael LaPorta Jr., who have been consulting with student body leaders, to iron out graduation plans, which are close to finalization. Seniors who have logged 135 hours of community service over the course of their high school career will still be recognized for their achievement at graduation.

Northampton Community College (NCC) is holding elections for its board of trustees. At the April 27 BASD board meeting, votes will be cast for or against Dr. Mary Sharp-Ross, who has been nominated to represent BASD for the next six years. Representatives from other districts participating in NCC, who are also up for re-election, are John Squarcia, Bruce Palmer, Nicholas Politi Jr. and Susan Baxter.

Reflecting on the challenges of the mandated school closures, Dr. Roy remarked, “we are blessed to have so many good people. It has just been inspiring.” The district surveyed teachers and principals about the switch to online instruction, as well as students at the secondary level, and the responses were generally positive. Based on Schoology data, the vast majority of secondary students are logging in and completing their assignments. “We’d rather be in school – our educational model is based on relationships and collaboration,” Dr. Roy commented, noting that his major concerns at this point center on students’ mental health and their families’ overall health.

Dr. Silva also noted that participation rates have been high, commenting that last week, Fountain Hill ES had a 93 percent participation rate in online school, and that teachers were following up with the remaining 7 percent of students. “We have strong administrators, hard-working teachers, and students and parents [who] have given us more than an even break.”

Members of the school board shared their appreciation for the teachers and administrators in the district, with new board member Winston Alozie noting his own son’s appreciation for his teachers at Thomas Jefferson ES. Faccinetto thanked CTO Marie Bachman for her work in setting up the Zoom meeting for full board, media, and public participation.