“Where did the money go?”

The money actually disappeared two years ago when the economy went south and tax revenues declined for practically all levels of government. As you can see in the chart below, state funding declined in the last two budgets and was more than made up for with Federal funds (stimulus money). So paradoxically the increased local funding in education for those years occurred while state funding declined. This year the state has increased it’s basic education funding by $104,803,000 but since there is no more additional federal monies coming in overall there is a decrease!

2011-12 Budget Slide Presentation p.29

Light blue ARRA money is Federal stimulus funds

This graph came from the state Department of Education

The fact that the stimulus money was temporary and would only last two years was a known factor to everyone one involved and paying attention to the funding process. Like the business manager of North Penn school district:

“We saw what was coming with economic stimulus money two years ago. The stimulus money was being used to make up the basic education subsidy and the revenues were not going to bounce back to sustain current levels,” he said.

From the April 12th Morning Call

Update:
The point? Asking for money that isn’t there, or not sustainable like the stimulus money was will only set up a bigger financial shortfall in the future. In the long run that would make it WORSE for the arts, music, gym, etc. The stimulus money could have been used as a bridge – two years to get prepared for economic reality. Instead too many school districts operated as if they could ignore that reality. Now it comes knocking at the door.

I have taken a page form NASD’s preliminary budget from February and posted it HERE. You can go across the State revenue line and the Federal revenue line and see the change that occurred in funding sources from the 08-09, 09-10, & 10-11 budgets.
NASD Fed & State revenue sheet at Google Docs

5 Responses to “Where did the money go?”

  1. Pingback: Latest NASD school board meeting | Concerned Citizens of Nazareth Area School District (CC-NASD)

  2. Chris Millere says:

    On the evening of April 11, 2011 a lady appeared at the NASD general meeting appeared with a petition sined by 187 individuals calling for a tax increase and the continuance of unsustainable debt. It is always nice to ride in a Cadillac but if we are not fiscally conservative we will all be walking. It was nice to see Mr. Crook making to point that cuts are coming.

  3. Bill Stankewicz says:

    Let those 187 people feel free to pay the increase. I don’t want to.

  4. ROBERT ECKHART JR. says:

    I AGREE WITH BILL, THOSE OTHER 187 [ TAX PAYERS ] CAN PAY FOR AN INCREASE. MY FAMILY HAD TO TAKE NO INCREASE IN WAGES THE LAST TWO YEARS, THE DISTRICT SHOULD HOLD THE LINE ALSO.

  5. Edward Stenborg says:

    I am not willing to accept these runaway tax increases. I have not gotten a wage increase for the past 5 years. The district should tighten their belt rather than trying to give the illusion of doing so. There should be no sacred cows. It is ridiculous though, that the district has cut the most practical program (driver’s education). Cut the waste.

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