Slippery Rock Area School Board unanimously passed its budget for the 2020-21 school year with a nearly $2 million deficit.

“It's primarily due to an anticipated decrease in revenues related to the COVID-19 shutdown,” said the district's business manager, Paul Cessar, during a June 22 meeting.

The district submitted a budget with a $1,927,191 deficit after its expected expenditures of $34,425,412 exceeded the predicted total revenue of $32,298,218.

The district also did not include a tax increase. The millage rate of 99.77 will be carried over for next year. The district will use its fund balance to pay the deficit. As of June 30, the district has a fund balance of $7,165,530.

“The board did not feel this was the proper time to be raising taxes,” Cessar said. “It was due to the unemployment levels across the state and in our district.”

According to the budget, the district is predicting its largest revenue decreases in areas of state taxes, earned income taxes, real estate transfer and delinquent tax.

Cessar said the financial situation from the recession of 2008-09 budget was used as a guide to help give administrators an idea of what impact the pandemic might have.

“We budgeted what we believe are realistic decreases in our collection rate,” Cessar said. “We're monitoring our collections on a weekly basis and comparing them to the last few years.”

On the expense side, the district removed one unoccupied full-time teaching position and reduced another full-time position to part time. The support staff is the only group under contract, but the budget reflects zero increase in salary for other groups.

The teachers' contracts expire June 30, and negotiation will take place.

Like other school districts, Cessar said CARES Act grant money is being used to address technology expenses, upgrading to touch-free bathrooms and buying personal protective equipment.

Cessar said the district is doing the best it can until the effects of the pandemic wane.

“It's hard to predict when the economy will come back,” he said. “We're looking forward to the return to normal, whenever that will be.”