Countdown to April 29 to PERMANENTLY close M. R. Reiter. Ask the board to see the 6 point plan.

Sunday, October 5, 2008

Shortfall at Corner of Main and Wall

From the BCCT. The place where Main Street and Wall Street meet runs right through the suburban kitchen and the familiar table strewn with bills that outpace the checkbook balance. It turns out that our elected officials are sitting around conference tables performing the same financial ballet.

You thought budgets were tight before? You'll fondly remember them as the good old days.


Towns anticipate budget shortfalls

By FREDA R. SAVANA
Bucks County Courier Times

The burst of the housing bubble hasn't just decimated the stock market — it's put a few holes in municipal budgets, too.

Several communities across the area are anticipating shortfalls they attribute to nearly nonexistent housing sales and an overall slowdown in development.

In Solebury, the $14.7 million budget has a deficit that could reach some $500,000, said Manager John Granger.

“It surprised me,” he said recently. Although aware the township was susceptible to the housing slump, Granger said he didn't anticipate the “depth of it.”

The real estate transfer tax, money generated when properties are bought and sold, brought in $800,000 in 2007. Anticipating some decline, this year the township had budgeted revenue from that tax at $700,000 but now expects to see closer to $500,000.

Solebury's earned income tax, which is based on each taxpayer's earnings, is off, too. Granger said he budgeted $3.2 million from that revenue source this year but as of July it had only reached $1.9 million. He expects to collect $2.8 million by the end of the year — $400,000 less than budget.

Solebury isn't alone.

Bristol Township Manager Jeff Bartlett said it will be a challenge to balance his municipality's 2009 budget, particularly since elected officials want to avoid a tax increase.

“Balancing the budget will require dipping into reserve accounts and generally watching expenses very closely and hoping for a mild winter,” Bartlett said.

Bristol Township businesses are showing lower profits, which affects mercantile tax collections, he said.

“The earned income tax is lower due to people losing jobs and not receiving pay raises. Property tax values are also lower in general due to the depressed housing market. We have seen a large drop-off in building-permit applications for home additions, etc.,” he said. “Again this is a sign that the economy in general is flat and people aren't spending as freely as usual.”

Perkasie, a small Upper Bucks borough with a $13.5 million budget, is finding itself swimming upstream, too.

Revenue from the real estate transfer tax is anticipated to come in some $65,000 short of the projected $145,000 for the year, said Borough Manger Dan Olpere. A self-imposed spending freeze is in place and borough staff has been told to keep a lid on all spending.

In 2007, before the economy began unraveling, the numbers told a different story. Officials had budgeted $169,500 but received $182,000 from the transfer tax.

Olpere said slow housing sales are the culprit; what few borough homes are on the market are staying there longer.

“The revenue just isn't there,” he said.

To make up the difference, Olpere said, residents can expect their electric rates to go up next year. Unlike many other communities, Perkasie has that funding stream to draw from since it buys electricity at a wholesale price and then distributes it to home and business owners.

Bucks County's seat is also facing a tax-revenue decline, said Doylestown Manager John Davis.

“The real estate transfer is the key,” he said.

According to the numbers, the tax earnings have been on a steady slide since 2006, when, with a large housing development going up, it generated $560,000. This year it's expected to bring in $290,000 of the borough's $4.9 million budget. Davis said he's budgeting $240,000 for 2009.

“The housing decline is driving our revenue loss,” he said. “There was close to a half million dollars in revenue that was there in 2006 that's not there today.”

Although Davis said the borough planned for the drop, it's been “enhanced and exacerbated” by today's dismal housing market.

On the plus side for Doylestown is a steady earned income tax stream — a fund that is enriched not just by more people moving into a community but also when the people who live in a town increase their earnings. Davis said revenue has gone from about $1.4 million to $1.475 million over the past two years and is budgeted for $1.5 million in 2009.

“That's helping cushion the blow a bit.”

Elam Herr, assistant executive director of Pennsylvania State Association of Township Supervisors, sympathizes with the marked revenue shortfalls. He said municipalities are limited in what they can do — and what they can tax.

“Anytime there's a downturn in the housing market — and in this case much more than a slowdown — municipalities do feel the pinch. It plays havoc with their budgets.”

With fixed costs such as salaries and utilities, all they can do, said Herr, is look for places to cut and “adjust their assumptions based on the economy.”

Title IX Violation Alleged in Bristol Borough

From the BCCT. We do not really follow the Bristol schools here, so it's hard to say what the true back story is. If this were Morrisville, these lines would be laughable. "School board members voiced frustration during their last meeting that the people who lodged the complaint did not first go to them to discuss their concerns. 'Now it’s going to cost taxpayers money [to respond to the allegations] when it could have been resolved with dialogue.'"

The Emperor has made it clear that for Morrisville citizens, dialogue is irrelevant and resistance is futile. The only way they will listen to opposing points of view is for both sides to lawyer up.


Complaint alleges district violating Title IX
The federal education department has asked for information ranging from booster club financial records to an inventory of district athletic equipment in its inquiry.
By JOAN HELLYER
STAFF WRITER

The federal government is trying to determine if the Bristol Borough school district discriminated against high school female athletes, according to the United States Department of Education. The accusations stem from the recent establishment of a football boosters club, according to a letter of inquiry sent to Bristol Superintendent Broadus Davis from the department’s Office of Civil Rights.

“The complaint alleges that the district is discriminating against high school female athletes on the basis of sex by using funds from booster clubs to provide male athletes with benefits that are greater than those the district provides to female athletes,” said David Blom, in the letter.

The fear, according to Blom, is that it would result in various inequities including equipment and supplies, game and practice schedules, locker rooms, and practice and competitive facilities.

The civil rights office is investigating whether the school district is in violation of Title IX of the Education Amendments of 1972, Blom said in the letter. Title IX protects people from sexual discrimination in education programs or activities that receive federal financial assistance.

Blom’s five-page letter includes requests for information about: all high school teams; 2007-2008 and 2008-2009 athletic budgets and schedules; booster club financial records; district athletic equipment; award ceremonies; 2007-2008 teams in post-season events; 2007-2008 team participation in exhibition or scrimmage games; high school coaching staff members; complaints received last school year about athletic program conditions; and various district policies.

Those policies include guidelines about booster clubs, publicity services for boys and girls athletic programs, locker rooms, competitive and practice schedules and facilities, and coaching staffs.

School board members voiced frustration during their last meeting that the people who lodged the complaint did not first go to them to discuss their concerns.

“Now it’s going to cost taxpayers money [to respond to the allegations] when it could have been resolved with dialogue,” Vice President John D’Angelo said.

Davis is working with board solicitor Anthony Mandio and district administrators to gather the requested information. They have until Friday to submit the responses to the department, the superintendent said.

The education department did not name the people who lodged the allegations against the district in its inquiry letter.

Department officials did not respond to the paper’s request to identify the people who complained. However, a spokesman said opening an investigation does not mean the district is guilty as charged.

The civil rights office generally completes its investigations within six months time, said Jim Bradshaw, the education department spokesman.

If investigators determine the district has not complied with civil rights laws, it will be asked to negotiate a voluntary resolution agreement, according to the department’s Web site. If the district does not voluntarily try to resolve the concerns, the agency can take various steps to ensure an agreement is implemented.

Schools News Around the Blogosphere

Bush Official Seeks Renewed Support for 'No Child'
By Washington Post Published Today Daily EdNews , K-12 , No Child Left Behind Rating:
Education Secretary Margaret Spellings today sought to reinvigorate support for the No Child Left Behind law even as the two major-party presidential candidates have distanced themselves from it. She contended the law has helped improve public education and should be strengthened.

On Obama: Why the Democratic Candidate Is Right About Education
New York Times
By BRUCE FULLER
Barack Obama understands that top-down government regulation is strangling innovation inside schools.

http://campaignstops.blogs.nytimes.com/2008/09/18/on-obama-why-the-democratic-candidate-is-wrong-to-blindly-throw-money-into-schools/index.html?ref=opinion
New York Times
By LANCE T. IZUMI
Common wisdom is that technology in the classroom improves student learning and achievement. But the evidence is far from clear.

District spent $1,116,000 on attorney fees!
School Board Settles Lawsuit Brought by Family of Autistic Student
The Ledger
For the past four years, Bill and Janie Sammons have fought the Polk County School District, contending that their autistic son, Drew, was never given a proper education

New Effort Aims to Test Theories of Education
New York Times
By JAVIER C. HERNANDEZ
A $44 million program called the Educational Innovation Laboratory is intended to infuse education with the data-driven approach that is common in science and business

Denver PS takes hit on bond refinance
Denver Post
Denver Public Schools' pension plan was pulled into the financial crisis on Wall Street this week when a dearth of buyers at a bond sale cost the fund "hundreds of thousands" of dollars in increased interest payments. The DPS fund has reserves to cover the increased interest and neither taxpayers nor pensioners are likely to notice. But the fund's inability to find investors for a week is just one example of how the tightening of credit markets could impact local governments should it continue or worsen