Palmerton votes for CCTI budget

Palmerton Area School District became the second sending district Tuesday night to approve Carbon Career and Technical Institute’s 2019-20 operating budget.

The approval came via a 6-1 vote, with Barry Scherer voting no and Kate Baumgardt abstaining due to her employment at CCTI. Director Josh Smale was absent.

Coming into the meeting, several districts had asked for more information on CCTI’s budget after Lehighton Superintendent Jonathan Cleaver recommended the school cut 10 percent off what it was asking sending districts to contribute. Cleaver cited CCTI’s healthy fund balance as a factor in making the request.

“We’d like to thank Palmerton for their commitment to career and technical education,” CCTI Administrative Director Dave Reinbold said after the meeting.

“This is a challenging and important time for career and technical education here in Carbon County. Local funding for career and technical education from the county school districts is vital for our success,” Reinbold said.

“There is a shortage of skilled labor in the county. As local businesses expand and new businesses take root, we are tasked with training workers to meet the labor demand. Maintaining local funding for career and technical education is an investment in our county’s future.”

Before the vote, the board heard from Reinbold, and business administrator Jeff Deutsch, with both men defending CCTI’s budget, which they called “fairly boring.”

The $8.5 million is a 2.4 percent increase over last year, but Deutsch said the school has not asked for an increase from sending districts in seven years.

Palmerton’s share, he added, has gone down $70,000 over the past three years, though this year it is projected to see a $11,899 increase. Each school’s share is tied to its five-year average enrollment.

CCTI’s fund balance right now is around $5 million, which is over 50 percent of its overall budget. By comparison, Palmerton’s fund balance is about 20 percent of its budget.

Palmerton Superintendent Scot Engler said based on the fund balance figure, he could support Lehighton’s request for a 10 percent reduction to sending districts. Engler also questioned why CCTI is budgeting for five special education teachers, when it only has three.

According to Reinbold, CCTI will be looking to hire a permanent full-time special education supervisor.

“Our long-range plan has been to not increase the amount we’re asking for from our sending districts until we eat away at our fund balance,” Deutsch said. “But we are coming to that point in another year or two. We’re projecting a $200,000 deficit in 2019-20.”

If CCTI were to comply with the request for a 10 percent reduction to sending districts, Reinbold added, it would be staring an $800,000 deficit in the face.

“You’re asking us to do something that not many school districts in the state would do, and that is give back revenue,” Reinbold said. “I think it’s being twisted that coming out with a surplus at the end of the year is a bad thing. We’ve had that scenario because we are being fiscally responsible.”

CCTI is planning to transfer $1.9 million from its general fund to its capital reserve fund for future projects such as replacing hot water boilers, digital cameras and other security measures, parking lot paving and a roof replacement, among other things.

Engler pointed to Columbia-Montour Area Vocational Technical School, which he said had a similar budget to CCTI, but a smaller fund balance.

“I understand the mindset of having monies set aside, but in reality that money belongs to the sending districts,” Engler said. “Nobody is saying it isn’t important to fund technical schools. I think you could look at the 10 percent reduction as a one-time thing to see where it shakes out. It doesn’t hurt in operations and gives us a nearly 1-mill tax increase that we don’t have to go to taxpayers for.”

Part of the reason for the loftier fund balance, Deutsch said, was CCTI’s concern that possibly one or two sending districts will not be able to afford to fund its share down the road.

“If that would happen, we would need a bigger fund balance,” Deutsch said.

Palmerton Director Earl Paules asked if CCTI would still allow students from that school to attend if that scenario played out.

“Probably,” Deutsch answered.

While Panther Valley and Palmerton have now approved CCTI’s budget, Weatherly rejected it, although Deutsch indicated Tuesday they would be voting again.