Budgetary restraint

From the BCCT.

Budgetary restraint
School boards must maximize tax relief.

There’s an important monetary deadline coming up, and we’re not talking about income tax day (although April 15 will be here soon enough). By the end of January, school boards have to decide whether they need to raise taxes more than the index designated by Act 1, the so-called property tax relief law.

We say “so-called” precisely because of the index provision, which allows school districts to raise taxes a certain amount without voter approval. That was the idea behind the legislation: To bring taxpayers more directly into the budget process. By some magic, most districts always manage to bring their increases in under the index, or use any of a number of exemptions to exceed their limit and still avoid going before voters.

Some officials say Act 1 is a good law and has, in fact, helped rein in out-of-control tax increases. A lot people disagree. They argue that the law gives school boards too much room to pass hefty yearly tax increases as they always have.

Anyway, for the 2009-10 school year, most districts in Bucks can boost taxes up to 4.1 percent without triggering a referendum. The way the economy is, and given the fact that many workers who still have jobs will see no increase in their salaries this year, 4.1 percent is a pretty significant hit. Remember, too, that the 4.1 ceiling could be higher in districts that claim an allowable exemption. Capital expenditures are one such item.

We understand there are times when prices have to rise, and in a down economy, such increases can hurt. We also understand the importance of education, and that good education costs money.

All that said, however, we implore school officials to work harder than ever to keep spending increases to an absolute minimum and challenge them not to view the 4.1 percent index (it’s higher in a few districts) as carte blanche to raise taxes by that amount.

While school boards have an obligation to provide quality education, they have an equal obligation to taxpayers to budget responsibly, particularly in difficult times such as these.