The Panther Valley School Board approved the proposed operating budget for the Carbon Career and Technical Institute for 2023-2024, after a question and answer session mostly centered on the school’s fund balance.

Board members wanted to know why the school was carrying a $1.7 million fund balance, and why the school districts didn’t get a break on their contributions.

Jeffry Deutsch, CCTI’s business administrator, explained they are allowed to carry a fund balance as long as they don’t increase their budgets, and the amount the five school districts contribute remains at $6.3 million.

The longer CCTI is able to maintain that fund balance, the longer it will be before the school has to ask the districts for an increase, he said.

“You take that fund balance away, or decrease it, whatever you want to decrease it by, that will be less years we don’t have a zero budget increase to five participating school districts,” Deutsch said.

He said he doesn’t want to come to the school districts with a budget increase, and they have been fiscally responsible, lucky with retirements, get some state subsidies and grant writing that help build the fund balance.

CCTI budgets and spends $8 to $9 million a year, Deutsch said. The participating school districts contribute $6.3 million of that total budget, he said.

“We really spend all of your money,” he said.

Board members questioned why the school is spending more, but Deutsch said they may be spending the $8 or $9 million but said again the districts are only contributing the $6.3 million with no increase.

They also questioned funds the school had in capital funds, and Deutsch explained that it came from a transfer from a fund balance.

Board member Michael Alabovitz asked why Panther Valley was paying the same amount each year, and CCTI keeps an excess fund balance, something he suggested was “overbilling.”

Deutsch began to protest the word, overbilling, when Alabovitz continued.

“When we’re broke, and we don’t have money to take care of our business and our school district, and we’re giving to yours, so you can have a fund balance, it looks foolish to our taxpayers,” Alabovitz said. “They’re looking at us, like ‘You people are out of your minds.’?”

Deutsch said CCTI is really at a crossroads. After 10 years of surpluses, the school is now crossing over to deficits and the fund balance will start to go down, he said. One board member countered that it would take a long time to draw that down.

Deutsch asked if the board wanted the school to give back the $1.7 million fund balance, and afterward come to them for $500,000 or $1 million.

“We’re not asking for that,” Alabovitz said. “I’m just asking why we contribute as much as we are, if you’re constantly putting money in the bank.”

Board President Daniel Matika added that Panther Valley has more grounds and more building to take care of and their teachers, who “bust their tails,” get paid way less than CCTI’s.

Deutsch said he wasn’t going to get into salaries, but the fund balances are there due to fiscal responsibility. He said those balances mean that Panther Valley won’t see an increase in contribution for many, many years.

Board members also suggested that representatives from all of the district get together to discuss the issue moving forward.