ADAMS TWP — Mars School Board met virtually Tuesday night to conduct the first public board meeting since COVID-19 emerged in Pennsylvania.

At the board's direction, district business manager Jill Swaney announced the district is temporarily suspending its budget process for the 2020-21 school year.

Reading from a prepared statement, Swaney explained this year's situation.

“The district — with the board's consent — will temporarily pause its budget process until the stay-at-home order is lifted,” Swaney said. “And businesses are permitted to resume operations.”

Historically, the district presents a proposed budget at the May work session and adopts a final budget at the June board meeting to meet the state's required budget deadline of June 30.

The district must still adopt a 2020-21 budget by June 30 and submit its final budget to the Pennsylvania Department of Education by July 15.

But Mars will “push the budget process out” as permitted by the education department to work with the most updated information, according to Swaney.

Citing the state's pandemic response timeline, Swaney said the district began discussing the 2020-21 general fund budget with the board finance committee on March 10.

On March 13, Gov. Tom Wolf closed state schools for a two-week stay-at-home hiatus. On April 1, Wolf extended the stay-at-home order to include all of Pennsylvania. Non-life-sustaining businesses were asked to close.

“Because of the governor's COVID-19 restrictions, our district is anticipating shortfalls in the collection of local taxes,” Swaney said.

Swaney said 70 percent of the district's operating revenue comes from local taxes in the form of earned income taxes, real estate taxes and local growth.

While earned income taxes will “likely” be impacted due to reduced salaries and job loss, real estate taxes will be affected by slow home sales.

“Because the construction of new homes has stalled, both real estate and earned income taxes from new residents will be — at best — delayed,” Swaney said.

Swaney said 30 percent of the district's budget is from state and federal allocations. While the state proposed an increase in district funding months ago, Swaney said allotments may be reduced due to a “pandemic-induced economic downturn.”

She noted the district expects any federal stimulus money to be nominal.

Every penny counts, according to Swaney.

“Our budget makes meaningful use of every dollar,” Swaney said. “Anticipated revenue decreases present considerable financial challenges.”

Swaney said the district wasn't far enough along in its budgeting process to identify potential numbers or areas of concern for next year. Any work on the budget now will be delayed.

“There are simply too many unknowns,” Swaney said. “The district's 2020-21 budget may require many difficult decisions.”