Business & Finance Committee

SPRING GROVE AREA SCHOOL DISTRICT

BOARD OF SCHOOL DIRECTORS

BUDGET AND FINANCE COMMITTEE MEETING MINUTES

 

DATE/TIME of MEETING:   December 11, 2024 @ 5:00 PM

LOCATION of MEETING:    Spring Grove Area Middle School, 244 Old Hanover Road, Spring Grove, PA

The following School Directors were in attendance:  Doug White (chair), Eric Barshinger, Karen Baum, Rodney Shearer, Nicole Wilson

The following Spring Grove Area School District personnel were in attendance:  Dr. Joseph Bradley, Superintendent, Dr. Steve Guadagnino, Assistant Superintendent, Mark Czapp, Director of Business Operations, Jen Leppo, Accounting Manager, Suzanne Sterner, Board Recording Secretary

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A Budget and Finance Committee meeting of the Spring Grove Area Board of School Directors was held on Wednesday, December 11, 2024.  Doug White called the meeting to order at 5:03 PM

Mark Czapp provided a high-level overview of the current budget, beginning with the Treasurer’s Report ending October 31, 2024.  Czapp included current revenues with historical trends from the state and tuition received from out-of-district students.  The district will conclude the year with revenues above what was budgeted at $86.8 million.  On the expenditures side, also including a historical trend and although very early in the year, there is very little difference to the estimated $86.4 million, resulting in a $1.7 million deficit that will need drawn from the assigned fund balance.  The business office began conversations with principals to review their historical spend and discuss options to narrow the deficit. 

Wilson questioned the process for developing the budget and receiving the board’s input.  Czapp explained that he and Jen Leppo meet with site administrators to plan for the following year, beginning in December.  Principals prepare their budget for the entire building.  At the elementary level, teachers are allocated $300 for classroom materials, per year.  Principals then add general line items outside of the specific classroom budgets.  Secondary level buildings are a bit different.  Budget presentations to the Board for consideration occur February through May outlining both revenues and expenditures.  The process has not changed from previous years.  Wilson stated that the board is responsible for the budget and, as such, is asking questions that previous boards have not asked.

White inquired about student trips.  If a club does not have the money to fund a trip, involved students should be fundraising or contributing to cover costs.  Bradley explained the goal is to have a balance of providing students with opportunities.  Wilson added opportunities should be equitable for all students. Leppo explained there is a difference between student clubs vs. co-curriculars, such as Rocketry and Mock Trial.  Czapp stated that costs for substitutes for teachers requesting the trips are now being included in trip requests (costs must be covered in the budget) and sports offered through the Athletic Department (stipends according to the Extracurricular Matrix). 

Incentives provided to staff (days off to winners) for the annual United Way Campaign have not changed over 30 (+) years and are included in the annual budget.  Committee members agreed to cease the United Way Campaign for 2025-2026 and instead, keep monies collected for a fundraising effort in the district.  This will be a discussion item with SGEA representatives, as the campaign is specifically mentioned in the CBA.

Committee members questioned various function/object codes that were presented.  Shearer also questioned health care costs and how the Wellness Center saves the district money.  Czapp explained that Lincoln Benefit Trust (LBT) is the district’s claims consortium because we are self-insured.  The district pays a monthly fee, based upon the number of participating employees, to cover medical claims for our staff. Vision insurance is offered to administrators as part of the Act 93 agreement.  Discrepancies that may appear on the report were due to an accounting error.  Czapp stated that another opportunity on the table to experience savings may be by joining Accarent Health, another consortium.

Baum questioned charter / cyber charter costs and questioned if the administration has initiated a task force.  Dr. Bradley explained that this is currently being reviewed, as there is value to seeing what other districts are experiencing.  He noted that when the district becomes aware of a family interested in leaving for cyber, there should be a robust alternative to offer.  A presentation to the entire school board is tentative for a future Directors’ Study Forum.  Bradley suggested marrying the charter initiative responsibilities to a newly proposed position that is currently included in the budget.

Additional questions by board members related to specific object code fluctuations were addressed by Jen Leppo who stated that PDE often changes account codes in their Chart of Accounts.  Czapp asked if there was anything the board would like to see differently or in addition to the existing information as future budget presentations are planned.  Wilson requested a list of suggested areas where we can experience savings.  She suggested removing iPads for students K-4.  Leppo confirmed that a list is being prepared. 

White stated his appreciation for the efforts from the business office to prepare the comprehensive presentation, and noted this is the first time seeing the detailed information.  White requested the administration continue keep the board well-informed, including proposed suggestions and the impact to the overall budget.  If field trips can’t be afforded, they need to be stopped to consider resources that will benefit all students, including any recommendation for additional staff.

Barshinger noted that the recent audit report showed special programs coming in over budget and appears the programs are at the ESC. White stated that the executive board recently asked Dr. Bradley to review ESC costs and provide feedback to the board.  Shearer stated that the board should be asking the administration to cut costs publicly to keep the burden off the shoulders of the administration. 

Barshinger requested to see a comparison among other York County school districts to see what they are spending in particular areas.  Czapp indicated it would also help with consistency among costs per student.

The administration will continue to develop a detailed proposed budget for 2025-2026, including suggestions to experience savings.  Czapp will keep the Budget and Finance Committee informed to determine any scheduling of the next meeting prior to the next public presentation of the proposed budget at the February DSF.

ADJOURNMENT

The meeting adjourned at 6:43 PM.

RESPECTFULLY SUBMITTED,

Suzanne E. Sterner, Board Recording Secretary

BUDGET AND FINANCE COMMITTEE MEETING

of the Spring Grove Area School District Board of School Directors
Tuesday, December 11, 2024 @ 5:00 PM
Spring Grove Area Middle School, LGI Room #241
244 Old Hanover Road, Spring Grove, PA
(Park in rear of building and enter at Door #13)

 Agenda

I.              Call Meeting to Order, DOUG WHITE

II.             Financial Overview, MARK CZAPP and  JEN LEPPO

• Current Financial Status Report
  • Year-to-Date Financial Position
• Review of Account Balances
  • General Fund
  • Capital Reserves

 III.           Budget Discussion                                                                                              

• Review of Current Budget
• Review of Adjustment Discussion (Historical Spend)

IV.           Action Items and Next Steps

• Review Timeline for Budget Approval
• Schedule Next Meeting

V.              Adjourn Meeting