Pandemic funds allowed Panther Valley to put aside money this year for future budgets.

That one-time savings will help the district going into 2022-23, as its annual expenses continue to exceed annual revenue.

School districts have until the end of June to pass 2022-23 school budgets.

Panther Valley is currently working on a proposed budget with $30.8 million in expenses and a deficit of $1.5 million.

In 2021-22, it used millions in COVID relief funds to cover expenses like salaries and benefits. That freed up about $3.4 million. The district used the money to build its fund balance, which was about $75,000 to start the year.

The district’s most recent annual audit, which looked at 2019-20, said that the district had a $2 million annual budget deficit. It did not include the COVID relief funds. Jones & Co. wrote that the district would require a tax increase and cuts to programs to keep its general fund from going negative.

“The district has to make major program cuts as well as raising revenue by a tax increase to sustain a positive fund balance in the future,” auditor Jones & Co. wrote last year.

Another annual audit report is set to be returned this month.

The budget deficit for 2022-23 is less than $2 million because the district has some new COVID relief money. That funding carries some restrictions – including adding three new teachers and three new paraprofessionals to help students overcome learning loss from the pandemic.

The district also received additional funding in the state’s 2021-22 budget, and generated some savings from a recent bond refinancing.

“The estimation on the audit is close,” said business manager Jesse Walck.

The current proposed budget does not include any property tax increases, or cuts to extracurricular activities. Property tax revenue is estimated to be roughly equal to the previous year.

Charter school tuition is expected to remain about the same.

The proposed budget does not include any additional state revenue, though the Wolf Administration’s proposed budget includes increased funding for schools.

“Taxpayers should call their legislators and ask for increases in basic ed, special ed and level up funding,” Walck said.