Solehi School Board Announces $1.1 Million Budget Calculation "Error"

A miscalculation in the will set the projected 2011-2015 school budget plan back approximately $1.1 million each year (board sources claim the total amount will be between $5.5 and $7 million over the next five years). The plan, known on the Southern Lehigh School District website as the “Strategic Plan,” calculated the use of an $18 million “general fund” over the next five years. The fund was to be used to stave off drastic cuts within the district.

“We recently found we were double counting increased tax revenues,” said board president Mike Eddinger at the Monday evening school board meeting.

Eddinger made it clear the $1.1 million doesn’t affect the coming school year. “People need to know that [the budget] for next year is covered. But we’re going to have to close this gap somewhere. Ignoring [the $1.1 million miscalculation] isn’t an option. In three years [if not addressed], this is going to be a big problem.”

The tax revenues stemmed from an approved June 2010 tax increase of 1.5 mills, approximately $1.1 million each year. “When the tax increase was passed in June (2010), the line item was supposed to be taken out of one spreadsheet and added to another,” said business manager James Snell. “It was added to the second sheet, but was not pulled from the original sheet.” Snell attributed the mistake to human error. “This was not a malfunction, but an error of omission,” said Snell.

“We didn’t lose $1.1 million,” said Eddinger. “The data was incorrect to begin with.”

Faced with the new information over the past weekend, school board members asked for more time to look over the budget and see where adjustments can be made. “[The school board] made[in the original strategic plan]. We’re going to have to look at the other 20,” said Eddinger.

 “We may have to talk about personnel issues as well,” said board member Dr. Elizabeth Stelts.

The preliminary budget, which was on the agenda for the Monday meeting, was pushed to the May 23 meeting, a move that didn’t sit well with all members. “I do think it’s important for the vote [on the preliminary budget] to happen before the primary elections,” said board member Jeff Dimmig. “Board members need to take a position on the budget, and the community needs to know what that position is.”

Other members asked for more time. “We need more time to work on [the new numbers],” said board member Bill Miracle.

Board member John Quigley agreed. “I just got the new numbers Saturday afternoon. I’m not ready to commit to a decision now.”

Dimmig, Quigley and Miracle are all candidates in the upcoming school board election.

The additional budget meeting will start at 5:30pm May 23, followed by the school board meeting at 7:30pm.