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Officials say district, borough will stay afloat while state budget negotiations drag on |
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Local Content -
Local News
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Written by Larry McGuire
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Wednesday, 01 July 2009 |
PUNXSUTAWNEY — The lack of a state budget will have little effect on Punxsutawney borough or the Punxsutawney Area School District.
Tuesday, school Superintendent Dr. J. Thomas Frantz said even without a state budget, it will be business as usual.
"We're very fortunate. We've been fiscally responsible over the last 15 years," he said. "We have a nice, solid, healthy fund balance, and we will continue to pay our bills out of that fund."
Here's where the district's funding comes from:
• 63.9 percent of district's funding comes from the Pennsylvania Department of Education, which totals $21,941,912.
• 32.2 percent of district funding is local revenue, which totals $11,052,500.
• 3.9 percent of district funding is federal revenue, which totals $1,342,162.
The district's projected fund balance as of today is expected to be $8,273,364.
The Punxsutawney Area School Board approved the new $39,131,456 district budget at Monday's meeting.
Frantz said when the state budget is passed, the district will reimburse its fund balance.
"We will pay back the money that we used from our savings with the state money once they pass a budget," he said.
Meanwhile, at the Mahoning East Civic Complex, Borough Manager Ben White said the state shutting down because it doesn't have a new budget passed has very little effect on the borough.
"The only effect would be if they furlough any of the workers that assist us with our grant funding," he said. "Our funding to run the borough comes mainly from the property taxes assessed to borough property owners."
White said the borough does receive state funding from the gasoline tax in the form of liquid fuels.
"We use liquid fuels money to pave our streets and for oil and chipping our alleys and side roads," he said. "Our liquid fuels money has all been spent as we've completed our paving projects for the year."
This year, the borough paved Highland Avenue, Spring Street, Center Street, Eureka Street, and Mulberry Alley with liquid fuels money.
White said the CDBG funding was used to pave Union Street.
"CDBG funding usually arrives later in the summer," he said.
Frantz said the district is careful to not overspend and to be prepared for the unexpected.
"The lack of a state budget is definitely unexpected," he said. "We will be able to pay our bills through the fund balance, unlike other districts, who I hear will be going out to borrow money to sustain their payroll and budget requirements.
"Our school district is in good financial shape, and there's no need to panic or worry about the state budget crisis," Frantz said.
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Last Updated ( Thursday, 02 July 2009 )
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