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UNION TWP. — Already under financial stress, the Northwest Area School District is beginning to feel the pinch of the state budget impasse.
School Director Peter Lanza raised the issue of “not paying back” to state institutions, in particular cyber schools, at Wednesday night’s meeting.
“If there is no state budget, then we’re not going to borrow any more money” to sustain operations, said board Chairman Randy Tomasacci.
“We could be out of money” by January or February, Tomasacci said.
Northwest has over $1.5 million in operating capital, according to Business Manager Kristy Straub. Overall, Northwest budgeted for $11 million in state reimbursement. But other than what Straub said is a small amount in state gaming funds, the school district has not received any funding from the state.
“We’re squeezed and hurt bad,” Tomasacci said. “Someone needs to light a fire in Harrisburg.”
While real estate tax revenues have began to flow into the district, it was pointed out that major funding for Northwest has been derived through a $2.5 million tax anticipation loan negotiated in May with First Keystone Community Bank. Tomasacci pointed out that the loan has cost $18,000 in interest and legal fees.
Besides the current situation, Northwest started the 2015-16 fiscal year by cutting programs and educational staff in order to balance an $18 million budget.
Beyond financial issues, it was announced that a grievance filed by the Northwest Education Association was settled with the board agreeing to remit $32,500 to resolve a matter over expenses incurred by several teachers who enrolled in extra credit courses during the period of recent contract negotiations. Originally, the NEA was seeking $75,000, but a compromise produced a reduced payment.
It was also announced by Betsy Ellis, director of district operations, that through Vickie Benscioter, a Hunlock Township supervisor, an effort is being made to apply for a state gaming grant in order to renovate the school’s field house, to fund the installation of a synthetic running track and to secure a new sports scoreboard.
Ellis added that she has received legislative support for her proposal.
Adam Sorber, director of technology, said the school district has been the beneficiary of 50 computers from the state Department of Labor & Industry in Wilkes-Barre, with another 100 to be donated to the school district.