Like school districts throughout the state having trouble making ends meet as a result of the state's budget impasse, the Allegheny Intermediate Unit board Monday approved a $28 million revenue anticipation note to meet its day-to-day expenses.
The AIU currently has about $7 million on hand, which is about a half month's worth of expenses, said Chuck Cronin, assistant director of finance.
Mr. Cronin said funds the AIU has not received because of the budget impasse include $5 million for alternative education, $4 million in IDEA funds and $1.6 million in core funding.
In addition, school districts owe $15.2 million to the AIU for services they've received.
Mrs. Hippert said intermediate units across the state are taking out similar notes.
The note will come from Bank of America, with an interest rate of a half percent, according to Jamie Doyle, of Public Financial Management. With that interest rate, if the note is continued for four months it will cost $44,000 in interest.
"I hope the state is aware of what we have to go through because of their lack of due diligence," said board member Marilyn Messina.
"Not only is it a difficult situation, it's a costly situation," said board president Tom Kelly.
Though day-to-day expenses are tight because of the state budget impasse, the AIU will still sponsor a professional development retreat for the superintendents of the 42 suburban school districts in the county at The Omni Bedford Springs Resort from Oct. 7-9.
The cost of the retreat is $707 per person and the funds will come from the AIU's program of services budget, which is largely composed of funding from the school districts. Mrs. Hippert said the superintendents, through their leadership group headed by Elizabeth Forward superintendent Bart Rocco, decided to have the retreat, which could cost the AIU $29,694 if all of the superintendents attend.
So far 27 of the 42 superintendents have registered to attend.
Topics covered at the retreat include cybersecurity, social media and crisis communication.
The board also continued its staff reductions with the elimination of a half-time educational interpreter. The elimination is in addition to nearly 50 other positions, largely in special education, cut since April.
Enrollment numbers in June showed a 55 percent decrease in students served by AIU special education teachers who work in districts and 21 percent decrease is students enrolled in three special education centers.
As of Monday night, Mrs. Hippert said average daily membership continued to decrease somewhat at Pathfinder and Mon Valley schools and up slightly at Sunrise School. Use of the AIU's speech and hearing services is down slightly and use of vision services has improved slightly.
First Published: September 29, 2015, 1:17 a.m.
