A projected deficit in the current school budget could complicate the Upper Perkiomen School Board's work to ratify a final version of next year's budget.

            Last week, Business Administrator Sandra Kassel informed the board's finance committee that the transfer of $448,191 from the reserve fund would be necessary to cover a shortfall based on figures collected the prior week.

            During the May 17 financial committee meeting, Kassel recommended that the board consider reducing the size of next year's budget if it wants to reduce the size of the tax increase. She based her suggestion, in part, on the proposed transfer from the reserve fund for the 2021-22 budget. "I'm not sure how to do that," said Kassel, who added that the figure for this year's budget should be reduced slightly before the end of the year. "It would be difficult."

            Four days earlier, the board approved a proposed final budget for the upcoming school year with a two percent tax increase. At that rate, a $3.783 million transfer from the reserve fund to cover a shortfall in the $70.431 million budget would be needed..

            With a two-percent increase that would generate an additional $700,000, the median property owner in Montgomery County would pay an additional $81.05. A Berks County property owner would owe an additional $31.62.

            During the May 13 regular meeting of the school directors, Board President Melanie Cunningham said the committee did not recommend the rate increase. She said they were waiting for the presentation on end-of-year figures before offering an opinion. Cunningham did not deliver an endorsement during the committee meeting.

            During the finance committee meeting, Kassel told the members that administrators would be willing to examine the budget and identify items that could be removed without impacting instruction. Superintendent Allyn Roche said they have ideas about what could be cut, but have not yet delved into the details.

            "We're all in the same boat in terms of feeling uncomfortable about reserve fund usage," Roche said.

            In response to a question from Cunningham, the superintendent said staffing levels could be determined by student enrollment. Roche said the district is holding off on hiring three new kindergarten teachers, as part of a new full-day program, until administrators are sure they have enough students.

            Kassel projected an unreserved fund balance near $9.4 million and estimated the overall balance to be just over $18 million. The total includes significant one-time grants awarded to the district, according to an email response from the business administrator.

            "This is a difficult year to predict due to the many variables," she wrote in the message provided by district spokesperson Nicole Gum.

            During the meeting, Kassel encouraged the members to allocate funds to the capital projects account to complete several necessary projects in the district. She referenced a district-wide feasibility study, HVAC repairs at the Education Center, fencing for a parking lot at the 4th & 5th Grade Center and upgrades to the high school softball field. 

            "You have to use your capital fund appropriately," the business administrator said.