The Seneca Valley school board is considering committing $6 million of its fund balance to help mitigate the costs of upcoming retirement contributions.
The money will be used over the next eight or nine years to help spread out the district’s payments to the Pennsylvania State Employee Retirement System, said Lynn Burtner, district business administrator, tonight.
According to Ms. Burtner, the district has about $17 million currently in the fund balance.
“This would be a long-term plan of having the fund balance help pay down PSERS,” said Eric DiTullio, school board president.
School districts across Pennsylvania are seeing spikes in their retirement contribution costs because the defined pension plan is underfunded.
School board members are expected to vote on the matter next Monday before they vote on the proposed 2014-15 budget. The $108,763,338 proposed budget includes a 3.7 mill tax increase.
Laure Cioffi, freelance writer: firstname.lastname@example.org.