Gov. Tom Corbett's proposed education budget resets the state's basic education subsidy to 2008-09 levels and eliminates other funding pools that school districts rely on.

This year's basic education subsidy included federal stimulus money, which is no longer available.

The Legislature must approve the 2011-12 state budget by June 30.

The list of eliminated line items is long. In addition to reduced basic education subsidies, districts could lose state accountability grants as well as partial reimbursement for charter school tuition.

“We had a sense that this would occur, but with nothing being shared from Harrisburg, we had no idea what the amount would be,” said Ed Fink, Butler School District superintendent. “We're going to have to take a look at everything we offer in the district.”

The state Department of Education announced Tuesday that Keystone Exams will be postponed for a year. Students would have been required to pass the exams to graduate from high school beginning in 2012.

But a $20 million price tag and the need for school districts to align their curriculums with the tests resulted in the delay, a department news release said.

In addition to the school district funding cuts, the $5 million Intermediate Unit funding is eliminated in the proposed budget.

The Midwestern Intermediate Unit IV, which serves Butler County school districts, will lose $187,000 of its $4 million operating budget, which is part of the $120 million it receives from state and federal sources, Cecelia H. Yauger, executive director, said.

“We're looking at our expenses and revenues and we'll revise them accordingly,” Yauger said.

At the same time, she is optimistic that state legislators may provide support for IUs in the final budget.

The IU, which is one of 29 in Pennsylvania, serves 27 school districts in Butler, Lawrence and Mercer counties, It offers special education services as well as mandated and requested school programs.

The largest education budget increase proposed is for funding school employees' pension fund, up 114 percent. The state's share jumps from $288 million this year to $615 million in 2011-12.

Special education is funded at the same level it is this year, $1.03 billion.

In the five Butler County school districts that might raise property taxes above state-allowed caps, administrators cited higher pension fund and higher special education costs as the basis for their requests, along with lower amounts of local revenue.

Although Corbett during his budget address said he would support legislation to require a public referendum on property tax hikes above inflation levels, that won't affect this year's school property tax increases.

Under Act 1, the state Department of Education is expected to approve those requested hikes.

Freeport, Karns City, Moniteau, Seneca Valley and Slippery Rock school districts are seeking higher property tax hikes than the state cap allows.

Allegheny-Clarion Valley, Butler, Mars and South Butler school districts agreed to stay within the state property tax hike caps.

Mars Superintendent William Pettigrew said Tuesday night he was not surprised with Corbett's speech.

“He ran on that platform and that's going to be the way it's going to go for the next eight years,” Pettigrew said.

He said the speech has already affected a number of state grant programs, which will require a cutback on programs for Mars students.

Pettigrew said he is waiting until actual numbers are released in a final state budget, but Mars officials are considering the potential impact the cuts could have on the district.

Butch Santicola, a Pennsylvania State Education Association representative, said Wednesday that teachers, as tax-funded employees, are “a popular target right now.”

Santicola said he noticed that Corbett did not mention pay freezes or cuts for elected officials.

Regarding the governor's urging of a one-year pay freeze for teachers, Santicola said any worker threatened with a pay freeze is going to react.

“We have to remember that the problems with the budget should not be placed on the shoulders of workers for this state,” he said. “It's just unfortunate that's happened.”

Santicola said Corbett's proposal to allow school districts to furlough teachers for financial reasons will be devastating for teachers, who he said support the local economy by living and working in their communities.

“They're going to be able to use almost any reason to furlough people,” he said.

He also questioned Corbett's plan to eliminate salary increases for teachers who earn their masters degrees.

“Why would you want to dumb down the qualifications to be a teachers?” Santicola asked. “It boggles my mind.”

Eagle staff writer Paula Grubbs contributed to this report.

Crunching numbers

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In his proposed 2011-12 state budget, Gov. Tom Corbett reset basic education subsidies back to 2008-09 levels.

In response, the Pennsylvania State Education Association determined how much each school district would lose without an increase in funding.

The Legislature must approve a final budget by June 30. If it does not increase education funding, here is what state funds school districts in Butler County will lose, according to the PSEA:

• Allegheny-Clarion Valley, $841,827

• Butler, $3.9 million

• Freeport, $936,026

• Karns City, $1.45 million

• Mars, $924,021

• Moniteau, $1.33 million

• Seneca Valley, $2.25 million

• Slippery Rock, $1.36 million

• South Butler, $1.23 million

• Union, $859,426