EASD Looks to Cut Deficit

The Easton Area School District should dip into its budgetary reserve -- and could have to cut staff -- to help fill a , the district's business manager told the school board Tuesday.

Michael Simonetta says the district should take $3 million from its $13 million assigned surplus to help balance the $138 million budget for 2012-2013.

But even that won't be enough to close the gap completely, Simonetta said during the board's finance committee meeting. He also said the district will need to cut spending by $4 million.

"I think this is a fairly grim picture," said Board Member Robert Moskaitis, who said things are all the more bleak when you factor in another possible tax increase.

Simonetta said the district has a variety of ways to help balance the budget, including changes to the way the Easton Area Academy is run or setting up a district-run cyber school.

There's also the possibility of a district wide staff reduction.

The district cut 72 positions in 2010. Last year, were marked as possible cuts in an effort to balance the budget, but the district eventually reached an agreement with the teachers union, and those positions were spared after teachers agreed to a pay freeze.

"Last year, we planned for the future," in agreeing to , said Jena Brodhead, president of the teachers union. 

She said it doesn't appear the district did the same thing, although she said that's not Simonetta's fault.

Brodhead noted that teachers' salaries only account for 39 percent of overall salaries in the district.

"It's not all on our shoulders," she said.

Board President Robert Fehnel seemed to have reservations about dipping into the reserves.

"If you pull $3 million out this year, it’s going to be $3 million next year," he said. "You're going to be headed toward a deficit."

"It's not pretty by any stretch," Simonetta agreed.

Moskaitis wondered if Simonetta had looked at the 2013-2014 and 2014-2015 budgets.

"What does that future hold?" he asked.

"Just as grim," Simonetta said.

Simonetta said the district could vote on a preliminary budget April 17, and then adopt a final budget on May 22.