Option

Description

Bond & Rating Risk *

Reimburse-ment Risk

Community Loss & Transportation Increases

Vo-Tech viability

Long-term Operational Budget Savings °

1

Full feasibility study: curriculum needs, student needs, community needs, long-term budgeting, buildings.

? **

Yes

-

-

-

2

Close North Penn, send 9-12 to MHS & LHS, BES becomes K-8. Some renovation $ needed.

$5.1M loss, ratings lowered

Yes

Yes, Blossburg area

Severely reduced

$700K/yr staffing, $110/yr utilities

3

Close LES, move K-8 to LHS, send 9-12 to NPHS and a few NPHS students to MHS. Continue with building project. (LES will need renovation next.)

No

No

Yes, Liberty area

Enhanced

$700K/yr staffing, $60K/yr utilities

4

Cancel project, give bond money back.

$5.1M loss, ratings lowered

Yes

No

-

-

5

Continue with NPHS/BES project as is.

No

No

No

Enhanced

None, projected $4.6M operational budget deficit five years out.

* The bond was issued about Oct. 2010 and according to IRS regulations for tax-exempt status, 85% of the total must be used for capital repairs and construction costs within three years (~Sept. 2013). See °. The bond was issued rather early in the PlanCon process because a federal income tax benefit that made the bond more attractive expired at the end of 2010.

The Department of Education will only reimburse if we continue with the current PlanCon process. At the moment, this reimbursement is uncertain because the Corbett administration’s budget proposal would impose a moratorium on school construction projects and the definition of how that moratorium would work or whether it would impact STSD is unknown. However, changing the PlanCon would clearly risk our reimbursement.

° The budget has two components for which money is dedicated and cannot be reallocated:

1.    Operational budget - on-going costs to keep everything running such as salaries, utilities, books, and supplies.

2.    Capital budget - major repairs and improvements to the physical plant – roofs, toilets, buildings.

** If study is not completed on time OR does not recommend continuing with NPHS/BES renovation plan as submitted in the PlanCon, the district will have the consequences of 2 or 4. If the district chooses this option, the reimbursement may still be at risk for not following the PlanCon schedule.

STSD-20120312-options-chart.pdf (62.83 kb)

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