By SUSAN RUMBLE

Special to The Press

Parkland School District Business Manager John Vignone presented an update on the proposed 2021-22 budget to the board during its March 16 meeting.

Vignone projected expenditures of $198,077,733, a 2.9-percent increase ($5,690,379) over the previous financial term.

For the new budget, Vignone anticipates revenues of $193,484,340.

The shortfall of $4,539,393 would be appropriated from the fund balance.

Vignone, however, expects the amounts to change as the process moves along.

He commented on the financial team’s methodology.

“Step one, we wanted to get a budget in place without the stimulus,” Vignone said. “Step two, then we apply the stimulus dollars toward COVID-19 related expenses.”

He noted the federal stimulus money must be used for matters brought on by COVID-19.

An example would be additional staff which were needed for adaptations due to pandemic precautions.

Vignone said the revenue/expenditure gap may decrease when the stimulus funding is received.

“We’re in a very stable position,” Vignone said. “This does not include the third round of stimulus dollars.

“When we apply those moneys, you’ll see the delta shrink further than it is right now.”

He reported real estate revenues have continued to rise.

“That will help the situation,” Vignone said.

The business manager commented on another source of district funds - earned income tax.

“We noticed last year EIT was not impacted by COVID-19,” Vignone explained. “It is not a concern this year either.

“Commercial and industrial properties are growing, and hiring is taking place.”

Earned income tax is collected from individuals who are employed within the three townships - North Whitehall, South Whitehall and Upper Macungie - within the school district.

The board voted some months ago to keep the tax increase within the Act 1 index maximum.

Therefore, the present mill rate of 15.71 can go no higher than 16.18 in the 2021-22 budget.

“The mill rate could go down. We’ll try to get it lower,” Vignone said.