NEW CASTLE Schools' budget still not balanced

The district will be taken over by the state if it fails to make any of its bond payments or payroll obligations.
By LAURE CIOFFI
VINDICATOR NEW CASTLE BUREAU
NEW CASTLE, Pa. -- City school officials are slowly whittling the 2002-2003 school budget deficit.
The deficit is now at $1.86 million, said Marie Pisano, school district business administrator.
Board members met Friday afternoon in a closed-door session to discuss more personnel cuts that can be made to reduce the deficit.
School officials are expected to formally adopt an unbalanced budget on Monday. An 8-mill tax increase is planned.
The district likely won't face any penalty from the state for the unbalanced budget, but if any bond payments or payroll can't be made in the next school year, the school district will be taken over by the state.
If that happens, the school district will have no power. A special control board will be put in place; it will have the power to cancel and/or renegotiate contracts and to establish a pupil-teacher ratio of not less than 26:1 in a district. In New Castle, that could mean the elimination of 118 professional positions, state officials said.
Making cuts
School board president Lynn Padice said the district is looking to make any cuts possible.
Some of the most recent cuts include not replacing two retiring secretaries. They will also pay the salaries of two security guards out of a federal grant and not the general fund, Padice said.
School board members recently received a report from the state outlining cuts and actions the board should take to reduce the debt. The report said if cuts are not made, the district will continue to have budget deficits in the future.
State officials came to the district at the request of administrators to help solve the district's problems.
The report stated that the district has had a deficit each year since the 2000-2001 school year, but has used interest generated from money set aside for the new city high school building project to balance the budget. The school project is under way, and that money is no longer available.
Suggestions
The following recommendations to reduce costs were made by the state:
UMake staff adjustments at all levels and, if possible, review contracts in which salaries or benefits are excessive. This includes eliminating paid vacation during the school year to employees who do not work during the summer months.
UInvestigate selling the right to collect delinquent taxes to a company that would give money up front to the district. An estimated one-time infusion of $2 million could be realized.
ULook at reducing transportation and maintenance costs. State officials said the district paid well above the federal reimbursement for busing costs. The report also suggests using some part-time custodians, instead of all full-time custodians.
UConsider closing two primary centers and increasing the pupil-teacher ratio in the district. Also, have one principal serve two primary centers and cut two school nurse positions. Now all buildings have full-time principals, and the district is above the state minimum requirements for school nurses.
ULook at alternative scheduling patterns for classes that will require fewer teachers and eliminate courses not required by the state that have low enrollment.
UConsider moving special education students in other schools back to the district.
The report recommends that the district go to Lawrence County Common Pleas Court to get permission to get a special loan to pay off the 2002-2003 deficit. By state law, districts are not permitted to take out loans to cover deficits, except when given permission by the courts.