TimesLeader.com

July 5

PA Board approves $39.9 million budget

Also reaches agreement of termination with former Supt. Ross Scarantino

Ian Campbell Dispatch Correspondent

Pittston Area School Board members approved a $39.9 million budget that calls for a millage rate of 12.3212 mills, an increase of 0.0912 mills over last year.

The change is about 2 mills under the old valuation system.

A mill is a $1 levy on each $1000 of assessed value.

Business consultant Albert Melone noted that some financial changes since the preliminary work had been done had meant the district had less of a cushion to work with. The district had lost $250,000 in decreased valuations, which it had only been advised of a few hours before the budget was to be presented, he told the meeting. With most of the adjustments made, the budget had been about $420,000 short, he said.

Tapping into various reserves put aside for health care costs and from interest savings on refinanced loans, the district had access to more than $110,000, according to the budget figures. Spending not forecast included a request for $22,100 for corrective work on the heating system for the swimming pool, which was made by engineers A and E Group prior to Melone’s presentation.

During a special meeting prior to the regular meeting, board members unanimously approved firing of Supt. Ross Scarantino, 64, by accepting a settlement and termination agreement with Scarantino, just moments before voting unanimously to hire George Cosgrove, 57, as the district’s new superintendent.

Board Solicitor Joe Saporito said by Scarantino approving the agreement he admitted he was fired for cause and has no recourse to appeal the decision to the Luzerne County Court of Common Pleas. The district did pay Scarantino a small severance package for his vacation days and a portion of his sick days, but saved hundreds of thousands of dollars in other contract benefits that Scarantino will not receive as part of the agreement.

Ambiguous wording in Scarantino’s contract, which was originally approved in 2005, when he was hired as superintendent and was set to expire in August 2010, required he be paid for up to 30 unused vacation days at his regular salary and all unused sick days at a rate of $100 per day if he was ever terminated for any reason.

Board members agreed to pay Scarantino for 30 days of vacation time at his regular salary and 125 of his 447 sick days at $100 per day for a grand total of $22,158.That was a small price to pay, board members said, for ending this contract with the embattled superintendent, who pled guilty in late May to federal corruption charges.

Scarantino will not receive district-paid life insurance, medical insurance or the remainder of his 2009 salary, any money for 332 of his sick days or 70 percent of his salary for five years, saving the district a grand total of $310,296.

Scarantino, a Duryea resident, and his attorneys, Phil Gelso and Frank Nocito, approved the agreement Friday, Saporito said.

Since Scarantino cannot seek any damages or appeal the board’s decision to terminate him, the district will save an undetermined amount of money in legal fees, Saporito said.

Scarantino had been on extended leave after pleading guilty to an FBI charge of accepting money for awarding school contracts.

The board unanimously approved substitute superintendent George Cosgrove as superintendent of schools, effective July 1, for a five year contract.

“I feel everything is behind us now. We have a new superintendent. …We are ready to move forward beginning with the next school year to make Pittston Area the best school district it can be,” board member Bob Linskey said.

In addition, the engineers sought permission to solicit bids for more work needed to extend the life of the pool. That work included replacement of the main pump, elimination of a pump pit, replacement of filters and piping, and correction of a water leak problem.

That additional work would likely cost in the region of $40,000 more, the board was told.

The board also noted that homestead and farmstead exemptions would be permitted, as well as a three-installment payment plan for school taxes, with equal installments due August 31, October 31 and December 15.

The board adopted a resolution entering into a loan agreement with FNCB for a $3.2 million tax anticipation note, for six months from July 1 through December 31, at 3.4 per cent interest.

Times Leader reports were used in preparing this article.