Quakertown Community School District, like many other districts in the state of Pennsylvania, is feeling the impact of the state budget deadlock and running out of cash to pay bills by the end of the year.
During its meeting Feb. 25, school board members came to the decision that withholding further payments to the PSERS (Pennsylvania School Employees Retirement System) fund may be the best way to save money.
According to a chart put together by the district's business manager, Bob Riegel, the year-to-date ending cash balance is $32.5 million. As months pass until the end of the school year in June, that $32.5 million will diminish through bills being paid such as salaries and PSERS payments. By June there will be about $1 million in cash reserves left and, according to school board member and finance committee representative Charles Shermer, not nearly enough to start a new school year.
"The state owes us (the district) about $14 to 15 million. We need to start conserving cash and exploring other options. It is my recommendation that we suspend all payments to the state, meaning PSERS, with the exception of employee withheld funds until such a time when we get subsidies from the state," Shermer said.
The next quarterly PSERS payment is due on March 21, Riegel explained, which is roughly $2.5 million.
Board members agreed, withholding the next two PSERS payments which would total $5 million will help but is still not enough.
"We also need to look at today to save. Freeze travel, freeze hiring, and talk about staff furloughs. We need to look at saving another $2 to 5 million," school board member Bob Smith recommended.
Board President Paul Stepanoff agreed with Smith's suggestions and noted the administration needs to prepare a plan to save another $5 million by June 30 including all the options mentioned. However, board members remained adamant, no borrowing of funds is permitted.
A draft plan will be presented at the next scheduled school board meeting, March 10.
In other business, in the absence of district superintendent Dr. William Harner, assistant superintendent Nancianne Edwards announced the appointment of Dr. Kathy Winters to the Director of Elementary Education.
Winters has been serving as Principal of Richland Elementary School for the past four years and as the principal of Quakertown Elementary School for 12 years before her transfer. She will be starting her new position June 10, 2016.
In a press release statement provided by Edwards from Harner, he commented, "One of the most important responsibilities I have as superintendent is to recommend principals and educational leaders to the board. Dr. Winters' extensive experience in early literacy, elementary administration, and ESL will serve our students well. I am thrilled to recommend her to the board to serve as our director of elementary education."