State College Area School District braces for revenue shortfalls due to COVID-19 pandemic
The sprawling economic challenges presented by the coronavirus pandemic have the State College Area School District bracing for revenue shortfalls.
Three SCASD administrators projected the 2019-20 budget would need to be reduced by about $2 million and expect an about $9 million revenue shortfall for the 2020-21 budget.
To make up the shortfall in the current year’s budget, the district is planning to decrease its transfer to the capital reserve fund significantly and use the funds instead for general operations for the rest of the fiscal year, according to a release sent after Monday’s board of directors meeting.
The district leaned on its finance employees to analyze historical data, including results from economic downturns in 2008 and 2011, to guide its projections.
One “potentially large uncertainty,” however, is the status of Penn State.
The university suspended all in-person classes through at least the spring semester. No announcement has been made regarding summer or fall sessions.
“The return to session of Penn State University will greatly impact certain district revenues,” the administrators wrote in a memo sent to the district’s board of directors. “The projections presented do not reflect a long-term closure of PSU, which at this time is extremely difficult to calculate.”
The district’s administrative staff are voluntarily foregoing salary increases for 2020-21 to help balance the district’s budget. That includes 36 administrators, including all directors, principals, the superintendent, assistant superintendents and finance and operations officers.
Further details are expected to be finalized at a future board meeting, the administrators wrote. The board is required to approve a final budget by June 30.
With all K-12 schools in Pennsylvania closed indefinitely, the SCASD recently made a move to remote learning.
This story was originally published April 7, 2020 at 12:31 PM.