Lehighton tackles $3.8M deficit
Lehighton Area School District is $1.8 million over budget to date for the 2018-19 school year and faces a $3.8 million deficit in 2019-20, according to a presentation during a board of directors’ finance workshop Monday night.
One major issue, Lehighton business administrator Patricia Denicola said, was that medical claims paid from July through March, totaling $3.5 million, were not shown as expenditures on the books.
Denicola took over in March for Brian Feick, who accepted a business administrator position at Schuylkill Valley School District.
“For a large part of the year, the board had a large expense in health benefits that they were not seeing as an expenditure,” Denicola said. “I can’t speak as to what was done prior. I would never do that as business manager.”
Denicola has said she has budgeted for what she actually anticipates the district to receive and spend, hoping to avoid the overruns the district has seen in recent years.
For example, she said, Lehighton budgeted $16.27 million for salaries in 2018-19 and, year-to-date, has spent $13.19 million with June salaries and summer pay for teachers still to be paid out of this fiscal year. Benefits were budgeted at $11.57 million and payments are at $14.90 million to date. Purchased professional services, such as intermediate unit services, were budgeted at $1.48 million and are at $1.71 million to date. Purchased property services was budgeted at $308,000 and is at $1.3 million to date. Supplies were budgeted at $1.3 million and are at $1.8 million to date.
“I think the numbers in the budget for 2019-20 are now more in line with our actual expenditures,” Denicola said. “We are going to work to bring the shortfall down. With health care, we can potentially save on prescriptions. There are different things we can do to try to get that deficit down.”
In response to questions on the number of employees Lehighton has, Denicola said from 2013-14 to 2018-19, the district went from 22 to 18 administrators, 191 to 184 professional staff and 124 to 102 support staff.
Board member Gail Maholick said her advice on starting to address the district’s deficit would be to increase the amount employees contribute for their health care, currently two percent of their salary.
Lehighton has to pass a final budget by June 30. The proposed budget had no tax increase built into it. Denicola said Monday a 1-mill increase would result in a $38.81 increase for the average taxpayer in East Penn Township, $43.21 for the average taxpayer in Franklin Township, $39.80 for the average taxpayer in Lehighton Borough, $47.83 for the average taxpayer in Mahoning Township, $37.12 for the average taxpayer in Parryville Borough and $31.03 for the average taxpayer in Weissport Borough.
“We didn’t get here in a day and we won’t get out in a day,” board President Larry Stern said. “The overruns were there for several years. Unfortunately, we didn’t have the information to see what was going on and turn it around. Now, we have to make some difficult decisions as every business does. We will do this in the least impactful way to our students.”
Director Richard Beltz said while he’s not blaming Feick for the medical claim absence on the expense sheet, it is troubling him.
“I trusted him,” Beltz said. “I don’t know why this happened, but it really bothers me. I ran for the board to try to stop the elementary center because we didn’t have the money to do it. Now that is coming home.”
Several times during the workshop, Bradley accused several board members and prior boards of rubber stamping administration ideas and failing to have proper oversight. He criticized prior boards for building a $13 million fund balance and spending it down instead of returning it to taxpayers.
“Steering the boat now that you went down this path is going to be difficult at best,” Bradley said. “In 2010, this district had the same number of students it does now, but the budget went up 30 percent in that time. Overspending has been a big problem here for years. The district is spending more than it is taking in. We’re in deep trouble because of past shortsightedness.”
Director Rita Spinelli said the board can talk about history all it wants.
“All that matters is what we do next,” she said. “We need to move forward and work on this together.”
Lehighton has its next finance meeting June 10, when it will present the latest version of its projected 2019-20 budget.
Comments
Good afternoon. First and foremost, the district needs a civics lesson. Public education is an entitlement program, a government-run program. $40M is consumed each and every year by the providers of the benefits. The board is the check and balance.
Those rubber-stamping the administration are giving the fox the keys to the hen house.
I will release documented proof these people are not telling the truth, but first, let's let them sink into the deceitful abyss. It is so much more fun that way. Like Andrew Yenser, the treasure that will have to answer to this statement. "medical claims paid from July through March, totaling $3.5 million, were not shown as expenditures on the books."
What happened here appears to be a statewide problem. Does the blind trusting Andy get caught in the web of deceit? Every month I'd ask Andy if he reviewed the invoices and he would ridicule the question. Imagine if we elected people of character, and not blamers, or those seeking immunity. Accountability is key.
Rest assured, they are coming for your wallets. The difference this time is the good people of Lehighton voted off Krause, Bowman, Duerst, Eidem and therefore we have a voice, and access to information. Some of us on this board know this shell game, and the hometown playbook of tax, spend, blame others on one side of their mouth and bury our children in debt from the other. The question we all need to ask ourselves; "Do we trust Stern, Wentz, Yenser, Spinelli, and Holland to consider the people's burden, or will they rubber stamp their friends and family employed by the district? Will they caterer to the lobbyist that funded their campaign with some serious money to get voluntary board position?
This time it is harder for them to hide the relationships, the numbers, and the records. It only takes one prick to pop a balloon, transparency makes every crooked politician squirm, past and present. When it comes to the decisions of this rubber stamping board, abdicating the voter's rights for representation, the history lesson "It is not yours to give" should echo the community.
God Bless America, thank you for all your votes of support.
Sincerely,
Citizen David F. Bradley, Sr.
The correct and sharpest pin for the job
As usual, the hard working taxpayers will cover the tab.
Further Rita, "all that matters" is not what the board does now as they "work together" to cover for these past blunders and inexcusable errors. Sorry. It's shocking that you so cavalierly excuse the past and hold no one, including yourself, accountable. As for Mr. Stern running the school board as a business, failing to account for a 3.5 million dollar expenditure gets you fired in the business world my friend. You may want to consult some real businesses for a few pointers.
In Japan, this sort of dishonor results in the official committing suicide. Here in the good old USA some resignations will suffice.
Typical politicians. Believing that raising taxes instead of responsible fiscal management is acceptable. It isn't......
Good afternoon. Have some fun and do an RTKR for all Highmark expenditures.
Specifically, invoice number 190227586507, 190227586506 and United Health care invoice # 317084182-1. The $1,272,054.56 PSERS payment for March 20, 2019, and the premium remittance statement for the Companion Life Insurance Company, Vista Underwriting Partners, LLC.
If you really want to question where the money is going, elect people that listen to reason, and ask questions. The SLAPPes five ( Spinelli, Yenser, Stern, Wentz, and Holland) voted to hire an attorney with a resolution to prevent such transparency. But for the last one, if we didn't record expenditures for benefits, why did the district pay $11,547.74 in ASO Dental claims for February of 2019. Yup, that is one month. Highmark claims paid through 2/22/19 were $38,865.35
The funny thing about real businesspersons, we don't need to know everything, we just need to ask the right questions of the right persons. Then, verify the response without a blind trust, or a rubber stamp. Good businesspersons don't surround themselves with pawns, we hire leaders. And this community needs to hire leaders. I am a believer in the idea that if the district is required to provide the information under the RTK law, we should publish it. If you do an RTKR, email me a copy, and if the district gives you any grief, let me know. I have proof that the lot of them are heathens. Why didn't they fix the required safety items in the district buildings?
Why did this board majority vote for tax increases with a surplus budget?
Why did this board majority silence the community then tax and spend the entire $15M surplus in just a few years?
Why did this board majority, with a silenced community, create a legacy of debt on our children and their children?
Why did the 5-4, 5-4, 5-4 votes not infuriate the citizens?
And the best one, How is it that one man, a fellow educator, on a mission to provide lawful transparency and open meetings able to piss off all the agencies getting a piece of the $40M this district spends every year? I am union-friendly yet, the PSEA, the Solicitor, selected bully teachers, Times-News, and the families and friends of the Hometown team of cronies seem to really hate rigid principles and common sense morality. Oh, well.
If nepotism, cronyism, and favoritism were not enough, how about the pleas of immunity for alleged Sunshine Act violations? An apology would have gone a long way, saving the district tens of thousands instead of our President's immunity defense. Ever wonder who whispered that idea in his head? And how the one gear that must have clicked one click, responded with, ok, good plan?
The house of cards is folding.
I have a reasonable plan to fix the financial woes, but it will take a moral standard and discipline these people just do not have. Regrettable, we need to have the cronies quit, resign, or be shamed into telling truth and admitting they sold this town down river. So, I will bide my time.
I started all nice back in 2011, and 2012. After that refoming LASD has been a science experiment. Apparently some people will have sink extra low before they will accept the truth. Stupid is as stupid does. I apologize that we were not able to stop this freight train of mismanagement. We the people made a valid effort and elected a good honest team. Mr. Tax, David Krause and Rubber Stamping Rita were all tipping points shifting authority to those this board was elected to oversee.
When, and if this district is taken over by the State, the furloughs, program cuts, and tax increases will bring blight. Charter Schools, faith based, and cyber are all growing, and as soon as school choice takes over the idea of forcing 1000 young kids into a single barrel, the financial troubles will end. Our children will thrive in a world economy and the freedom to choose will encourage the student to bring ambition and enthusiasm to the classroom. The image that, a self-balancing educational system.
Verbose? nah, just a daily dose of unemotional righteous indignation to counterbalance the evil perpetrated upon this community, as in Matthew 21.
Sincerely,
Citizen David F. Bradley, Sr.
The government majority failed to protect the children, and not just once.
(Feasibility study, Sexting teacher, child porn in the building, bird mites, special needs, strip search, lack of Miranda, quiet lunches, bus times, leaking roof, removing school choices, a high percentage of failures to graduate, extended high school careers blocking advancement )
The government majority failed to maintain a balanced budget.
The government failed to review all the applicants prior to hiring staff.
This government failed to comply with the Sunshine Act and its own policies.
This government failed to hold the very people they were elected to oversee accountable for their actions.
This government majority illegally used educational funds to hire a law firm with a SLAPP resolution to attack the first amendment right of a fellow board member.
This government majority hired an attorney to fight the constitutionality of the Right to know law.
This government majority paid money to have the President file a plea for immunity.
Shame on them for seeking re-election to the position of rubber-stamping shill.
Remember the letter attacking Zimmerman's Dairy, alienating new board members blocking them from information, and ignoring the parents and grandparents that care for the children.
The educators that have been intimidated, passed over for nepotism, cronyism, and favoritism should all be given their voices back. Employment contracts should not have first amendment restrictions, this is America. Those oppressed should have the guts to file a formal complaint against the mistreatment by our administration staff like a recent applicant did today.
Oh well, someday I guess those oppressed with say no more like I am willing to do so my children's children will not live under such authoritarian rule.
Sincerely,
Citizen David F. Bradley, Sr.
PS. The age of information and communication has converged to embrace freedom, making this smackdown on our shameless government.
The good ole boy system will continue to prevail in Lehighton and we will all bear the brunt of their lack of vision.
It is not the fault of board members if health care costs exceed one year over another due to circumstances or other costs out of their control including charter schools, which by the way, Mr. Bradley wished not to try to put boundaries on costs if local schools offer their own online programs. This was evidenced in his resolution vote in May, 2019 on the charter resolution. He was not looking out for saving potential taxpayers dollars with that one for sure. Choice is still an option within the online academy offered to students at a lower cost that outside programs.
Everyone must take up the financial challenge with the information that has recently been provided under the new business administrator. It is easy to spout off in general terms, but until all facts are known and solutions procured, the blame game serves no one any good. By the way, it was the business administrator who first brought up the health care costs expenditures not being recorded. Let's hope we can put the blame game aside, which I doubt will happen, for that is the easy way out to circumvent any real solutions and the desire to work together. I keep hoping this will stop and the board will take their challenges seriously which I believe most will do.
IE: Pay more taxes. NO!!!
Do you really believe that no one should have anticipated a rise in health care costs?
Do you think that a 2% contribution by school district employees is in our community's best financial interest? Does it mirror the private sector?
Please don't sugar coat our situation.
Did anyone (besides me) VERIFY the new statements of the the administration?
Why are you so trusting that the old business manager lied but not a new one?
As for the accountability, we have been preaching for transparency in thos money shuffle. Ever realize that since the Stern, Yenser, Spinelli, Wentz, Holland block will have power for the next four years that the "problem" of a five years plan were accelerated. I exposed the five year chart of excess spending over budgeted revenues.
The question you need to ask is why did a district transfer money, to create a deficit, and then claim to need a tax increase? Fear, is a motivator.
As for the charter schools, cyber and private schools, they all SAVE districts massive amounts of money and provide superior education. The numbers don't lie, just the administration seeking access to your pocketbooks.
Why is the budget busting $40m with the same number of students and less staff? Of is there more staff? If the board majority stops being a rubber stamp, we, as a community and a board can get the real numbers. The budget is easy. Fixed and variable costs are well defined. The problem is the boards attitude. When wacky Wayne Wentz's mentality of tax and spend is implemented without the needed oversight the community suffers
Pull a right to know, verify the statements of the business manager, the administration and the board.
Go back 1,3,5, 7 and 10 years and look at the predictions that this district is on a path of bankruptcy. The path is unsustainable, the only question is how long. And borrowing $100M in future liability was a tax grab reaching into your grandchildrens' pockets.
Evil is as evil does. The didn't protect our children and didn't save the community. We can, but need access to the truth. The majority blocks access, and doesn't hold the administration accountable, plain and simple.
Sincerely,
Citizen David F Bradley Sr.
WAY TO GO CANNOT WAIT TO MOVE!
Good evening. I have officially refuted the statement made by the administration "that medical claims paid from July through March, totaling $3.5 million, were not shown as expenditures on the books." The citizen of Lehighton photographed the invoices and retained copies for just such an administration lie.
They are coming for your wallets, rather than cutting waste, they are consuming the fund balance collected from the massive tax increases placed on the community.
The documents will be released on social media, youtube, and have been given to the Times-News, Local 13 and others for release. I wonder who will release them and chastise this administration and their nieve rubbers stampers that failed to challenge the use of the oldest trick known to business; blame the guy that left.
Stay tuned this will get interesting.
Sincerely,
Citizen David F. Bradley, Sr.
The evil regime of staff friendly board members are running the tax hike play book. As they cry wolf, hold onto your wallets.
Let me explain.Â
In the past to justify things the Gym class for example was scheduled at lunch time. Classes cut, lost educational time etc.Â
Now the gym space was open most of the morning but to cause pain to the students and parents the schedules were changed. How about the longer bus schedules? Stupid things line that.Â
Now let's look at the new Hometown team playbook.Â
Bathroom soap and hand towels shortages, leaking roof stories, the Fire police were cancelled for graduation. The district claimed that they "Couldn't afford the donation." $200. Stupid things like that. Â
And the excuse? The "last guy" did "fill in the blank" wrong and now was have to raise the taxes. Dave Bradley's fault. Well I found the medical claim payments documents that contradicts the $3.8M "medical claims" shortfall story. Â
All create a story of mismanagement that taxpayers have to pay, for the children. Â
And we pay, every year $40M, up from $28M for the same enrollment.
The administration, interest payments, contractors, staff and staff benefits get the bulk of it. The teachers are pawns to the regime, beaten down, intimidated, and treated with respect by this in power. They toe the line, they have to. The immoral process that uses the children as pawns. The favoritism for the 'cheat', the vulgar text, emails hidden, lawyers to hide the emails. Look at the Tkach email, Cleaver email and Howland, no wonder they circled the wagons on the email RTK.Â
This year it was searching cars for 10 day suspension 10 days before graduation. Remember last year's strip search episodes on the last day of school? Power trips. See the trend yet?Â
Power hungry, tax hungry. They hire the Solicitor without a bid, PSEA funds campaigns that elect the board that has spouses, family and friends on the district payroll. Contract negotiations are coming, who will have the citizens' back?
Cancelled the Fire Police for $200, tennis courts will be in the millions, football was how much again? I agree the district should not be using its ability role coordinate donations rather than taxes to fund extra services. I offered $20 for the Fire Police so the district won't put the young students or community at risk doing a professionals work. Just ridiculous, this year we have the power of undocumented hindsight. Â
Now we all can see why they hate me, and the transparency I know that will disinfect this corrupt local government of rubber stampers offering blind trust to those they were elected to oversee.Â
Sincerely,Â
Citizen David F. Bradley Sr.