Harrisburg school district Receiver Janet Samuels (file photo)
The COVID-19 outbreak has blasted a $4.2 million hole in the Harrisburg school district’s planned budget for next year, but district officials don’t expect to have to raise taxes.
That was the main takeaway from the school district’s virtual budget workshop on Monday, where the preliminary 2020-21 spending plan was unveiled.
“Given these new projections, the revised budget deficit is now more than $4.2 million,” said Acting Superintendent Chris Celmer. “Sometimes, with crisis comes opportunity. We’re hopeful, even with all the unknowns, that we will be able to move the district forward.”
According to the district, the proposed $157.6 million budget was in balance until the economic crisis caused by the pandemic ruined projections.
Since then, the district has had to substantially ratchet down expected revenues from earned income taxes, PILOT tax payments, real estate taxes and increases in the state’s basic and special education subsidies, resulting in a $4.2 million budget deficit.
The district plans to fill that gap with $4.7 million that it expects to receive from federal Coronavirus Aid, Relief and Economic Security (CARES) Act funding. These are one-time funds, meaning that the district may face tough revenue and spending choices next year if the economy and tax revenues don’t quickly improve.
The proposed $157.6 million budget compares to a $149 million projected final budget for the 2019-20 school year. The increased spending is due to increases in employee salaries and benefits, among other higher expenses.
In a small bright spot, school officials stated that they hope to refinance and reduce the district’s substantial debt by taking advantage of historically low interest rates.
District Receiver Janet Samuels is expected to approve the preliminary budget at the district’s next business/school board meeting on Monday, May 18. Another virtual budget workshop is scheduled for June 15 before final action on a 2020-21 spending plan, which is expected on June 22.
