Allentown,
PA (May 14, 2020) - On Thursday, May 14, the Allentown School
District Board of Directors and our school community were presented with the
proposed 2020-2021 budget during the regularly scheduled finance committee
meeting. Click here to download the presentation.
The Allentown School District (ASD) remains
committed to a number of District priorities outlined in our Strategic
Framework while facing a structural deficit, compounded by the new economic
fallout of the COIVD-19 pandemic. The district has made great strides in the
reduction of the deficit identified by Public Financial Management (PFM) back
in 2017.
Early internal estimates for 2020-21 were more
favorable than the PFM projections but still showed a structural fund balance
deficit. ASD is projecting a negative fund balance in the amount of $7.6
million for the 2020-21 FY. While less than ideal, this amount is drastically
less than the $109 million predicted by PFM during the audit.
“While no one could have predicted the
unprecedented impact of COVID-19, ASD was already saddled with a number of
fiscal challenges prior to the pandemic,” said Thomas Parker, Allentown School
District Superintendent. “Year after year, we continue to cut back, while still
working each day to provide high-quality education for the students.”
Through the district partnership with the
Carbon Lehigh Intermediate Unit (CLIU21) a number of robust internal systems
were developed and implemented to improve organizational effectiveness and
accountability, and thereby support in deficit reduction. Despite continued deficit reduction
strategies, it was imperative that the budget include a proposed range of tax
increases, however, the amount of that tax increase has yet to be voted on.
The budget also includes $9.8 million in CARES
funding, designed to specifically help alleviate the unprecedented fiscal
challenges of COVID-19. This funding was announced earlier in May during a
joint press conference with Congresswoman Susan Wild. This will be specifically
earmarked to create opportunities and increased access to early education
learning, college, and career access initiatives, and a meaningful family and
community engagement.
On the May 28 regular board meeting, should
the board vote to adopt the proposed final budget for public display, the
PDE-2028 form will be available on the ASD website for review. A final special
budget meeting will be held on June 29 in order to approve the budget.