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Legislature May Require Deep Cuts To School Budgets

PCSD

The Park City School District’s preliminary budget shows a 2% increase for next year. However, the state wants school districts to anticipate possible cuts that could amount to up to 10% reductions in funding.

The school district’s $82.2 million draft budget is based on January 1 property valuations. Park City School District Business Administrator Todd Hauber says the COVID-19 economic impact was not part of those assessments.

“We’re anticipating new growth in property taxes with development that had been in place and ready to operate as of January 1st of this year. There was growth before Corona- virus hit so we're anticipating that revenue to still show up.”

Student enrollment is projected to be down more than 1% which will have an impact on eligible state revenues. The legislature plans to meet in special session in June to iron out funding issues impacted by COVID-19 tax revenue losses. Hauber says they’ve been asked to be prepared for possible deeper cuts.

“The state legislature, as it prepares for its special session in June has asked all of the school districts and charter schools as well as state agencies to go through and identify 2%, 5% or 10% reduction. So, it's not technically a full budget, it's just recommendations on how we could reduce budgets to fit those targets. They’ll then take that under consideration as they come into the June session.”

Hauber says a 5% budget cut would result in $1.3 million and 10% represents a $2.6 million cut in revenue.

“So, those are significant reductions. We would really be    looking at the program offerings that we have at the school district as well as looking at other resources that we have to make that kind of a target.”

The school district has healthy reserves to assist revenue shortfalls for the coming school year. He says they’ve been through a 5% budget reduction scenario and could apply that if the legislature directs it. But if the economy doesn’t come back by the following year, Hauber explains the other options.

“Obviously, the continued budget reductions or to look at other revenue opportunities whether it's other state programs that we've not applied for money through or federal grants that would be available or also we have headroom within our own property tax rates to generate necessary revenue. But we would want to get down to the essential programs so that we're not going down a path to try to find money just to keep things status quo.”

The legislature increased the Weighted Pupil Unit by 6% in the 2020 session. Teacher and staff contract negotiations continue but increases are dependent on state funding.

“At this point, I think we’re in a bit of a wait and see mode to see what's available as we move forward. Primarily the increases come as the legislature provides more money to school districts and that's the piece that's now in question.”

Links to the Park City School District 2021 tentativebudget can be found on KPCW.org.
 
 
 
 
 
 
 

KPCW reporter Carolyn Murray covers Summit and Wasatch County School Districts. She also reports on wildlife and environmental stories, along with breaking news. Carolyn has been in town since the mid ‘80s and raised two daughters in Park City.
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