Budget concerns of some Yough school directors have escalated into an internal investigation of that rural district's past fiscal practices.

Directors last week authorized Solicitor Gary Matta, of Pittsburgh-based Dodaro Cambest & Associates, to examine the district's fiscal situation.

The probe is focusing on the district's $75 million debt service obligation, whether the district paid health care insurance benefits of any directors or their family members, and a $204,000 deficit from the 2006-07 budget.

Those were among several issues that surfaced when Director Nancy McClaren questioned a proposed 7.21-mill real estate tax increase to support a tentative $27,410,164 operating budget for 2008-09. This was on the heels of a 2.97-mill decrease in the levy that was included in the current spending plan.

Another issue that has come up is the abrupt resignation of former district business manager Vince Belczyk. His letter was accepted by the board effective immediately.

Mr. Belczyk did not return phone calls.

Alan Stahurski, retired business manager in the neighboring Elizabeth Forward district, has been retained by Mr. Matta as a consultant.

Mr. Matta also is authorized to consult with state Auditor General Jack Wagner's office to assess "any other improprieties associated with the Yough School District."

Could the state Ethics Commission become involved?

"That's a possibility," Mr. Matta said. "After our investigation runs its course, the school board will review the results and decide which direction they want to take.

"People must understand that we're dealing with allegations, not improprieties. We need to sort out everything then analyze the actual impact on the district's fiscal circumstances, if any, before conclusions can be drawn."

Mr. Matta added: "The district has been paying in excess of $3 million in debt service annually on past bond issues that funded various district-wide renovation and new construction projects. People involved in education tell us $75 million at this stage of maturity is kind of high."

Mrs. McClaren said: "When I joined the board this year, I thought those previous bond issues are about five years from being retired. Now we're looking at 2034, maybe."

She alleges the district may be paying "about $780,000" in health care benefit costs outside of contractual obligations for district administrators, staff and faculty.

Auditor Joel Kunkle informed the board last week that the district ended its 2007-08 budget with a deficit of $204,000, which was not reflected in determining the current spending plan.

"How can somebody not be aware that an almost quarter-million dollar shortfall existed, and then decrease the real estate tax millage?" Mrs. McClaren said. "No wonder the district's fiscal situation is questionable."

Board President Diane Appolonia said the district anticipated the possibility of ending the 2007-08 budget with a $30,000 fund balance.

"Most of us are new to the board. We added two new members last week," Mrs. McClaren continued. "We need answers. That's why I made the motion authorizing the solicitor to begin an investigation."

Directors could get some answers at a meeting at 7:30 tonight, Mr. Matta said.

Engineering and Planning Consultant L. Robert Kimball & Associates will reveal the results of a board-authorized study to determine the condition of district buildings during a reconvened meeting tonight in the large group room at Yough High School, along Lowber Road near Herminie.

"The study should determine the scope of renovations and new construction the district is paying for, and if the work was done according to approved design and plan," Mr. Matta said. "We're getting reports of roofs needing repair.

"In addition to the condition of buildings, the consultants will advise the board on what work needs to be done this year, five years from now and 15 years in the future. The district can develop a long-range plan using that information."