Stimulus money could be flowing into Harrisburg School District
</element><element id="paragraph-1" type="body"><![CDATA[The Harrisburg School Board has received word there is a big chunk of stimulus money headed its way -- but Superintendent Dennis Smith advised board members not to count their chickens before the hatch.
The state superintendent of schools has notified Harrisburg the district can expect $962,000 from the state as its share of "jobs bill" money that ultimately came from the federal government as an economic stimulus initiative. The money is supposed to arrive soon, Smith said. But Smith cautioned the state is still behind $500,000 in other forms of aid to the district and talk in Springfield has pointed in several directions during the budget crisis.
"I think we'll get the money with a lot of fanfare and it's very possible that they will short us at the end of the year," Smith said after the meeting.
"I won't believe it's there until it's there the last day of the year."
The money is intended to hire new staff or retain existing staff, Smith said.
The board put on public display a budget that includes $15.7 million revenue in the Education Fund against $15 million in expenses. Overall, the district is about $615,000 in surplus on paper. But last year's state-caused budget woes will still leave an imprint on this budget. And, there is no guarantee that state-allocated money will arrive on time, as promised. Late payments could cause a cash crunch whether the budget has a surplus or not.
"You have to see this budget in a two-year window," Smith said.
The budget doesn't include the $962,000 windfall from the state jobs bill.
The budget is available for public examination at the Central Office during business hours. It will be voted on formally at the Sept. 22. meeting.
Early enrollment figures for the new school year show a general rise in pupils in the lower grades. East Side has enrollments of 191 in the third grade, 171 in fourth grade and 166 in fifth grade, Principal Bryce Jerrell reported.
"It's a little more than I was expecting," Jerrell said.
There are 31 new students at Harrisburg Middle School already, Principal Jim Butler said. His enrollment numbers aren't yet ready, but he knows they will be somewhat higher than expected.
West Side Principal Scott Dewar did not have enrollment figures, but expects similar enrollment to last year, he said.
Retirement plans
Two agents wanting to administrate 403b retirement policies clashed with Smith, and each other, during the meeting.
Starting two years ago, the IRS began requiring districts to administrate 403b retirement plans, which are private plans popular with some employees.
Agents for insurance and financial companies started offering to administrate the 403b plans for a fee or other considerations. American Fidelity agreed to administrate the plans free-of-charge for the school district in exchange for access to school staff for purposes of selling other financial products.
Aflac agent Stephen Questelle approached Smith about the business, saying his company has written 121 policies in the district, but American Fidelity won't administer the Aflac programs. At first, Questelle didn't think Aflac was in the business of administrating 403b plans, but later learned his company offered that service. He brought a proposal to Smith to do the service for $4 per month, per employee, which Smith rejected. Instead of formally asking the district to take bids next year, Questelle took his case to the board.
Questelle told board members last night he recently learned Aflac also offers 403b administration free-of-charge. Smith, who advised board members in writing Aflac proposed the $4 per month, per employee charge, pressed Questelle on when he learned Aflac could offer a better deal.
Questelle said he learned he could offer a better deal on Aug. 5.
Smith put on the agenda that went out to the board and the public that Aflac's offer was $4 per employee, per month, he said.
Questelle said before Aug. 5 he didn't know how many people's policies were involved, which affected the price.
After a great deal of back-and-forth among Questelle, Smith, Scott Barnes from American Fidelity and board members, the board agreed to take formal bids next school year but leave the deal with American Fidelity as-is until then.