PES looks at tough financial projections
PRINCETON — The Princeton Elementary School District could have a potential loss in revenue of $1.8 million during the next several years due to expected state funding cuts.
At Monday’s school board meeting, Superintendent Tim Smith gave a three-year projection of the district finances, based upon, in part, what the district received last year from the state, or should have received.
Smith said the state is not in good financial shape, is trimming its own budget and could phase out its Hold Harmless funding to school districts in the coming years. Expected state funding cuts would affect lots of different areas in general state aid and categorical state aid, he said.
On Wednesday, Smith said he’s fearful his projections, when it comes to state funding cuts, could become a reality.
Unfortunately, there is little the local school district can do to control the revenue side of the budget as far as state aid is concerned, Smith said. If state aid is decreased by more than $1 million in the next few years, the district will have to find ways to make up for that loss.
Another financial concern is the projection that the district could see a negative growth in its EAV, or Equalized Assessed Valuation, in the next couple years, Smith said. County Assessor Tom Sweeney has said the district could experience a 2 percent EAV growth this year, but could finish the following year by a negative 0.5 to negative 1 percent growth/decline, Smith said.
“We know as a taxing body that as the economy goes, so goes the funding for the school districts,” Smith said Wednesday. “But it’s not just school districts that’s affected. It’s everybody, every agency, such as those for the elderly, the veterans, hospitals, or any other agency, receiving state funding.”
The bottom line is the PES district will have to look carefully at controlling expenditures, Smith said. The school board will have to look long and hard at what the district is currently spending and see how they can cut expenses without damaging programs. A finance committee will be formed to look at the district’s expenditures and revenues.
As PES administrator, it is his responsibility to look at every possible cost savings measure, Smith said. As far as any possible consolidation of buildings to save money, Smith said there is no space to consolidate. The buildings are needed to handle enrollment.
“Our job is to go forward and to be responsible with our resources,” Smith said. “We are responsible to a lot of people, our community, the taxpayers, our families and our students. We have to be fiscally responsible and to look for ways to not have to cut our programs.”
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