Neshaminy looking for ways to cut costs

From the BCCT.

Neshaminy looking for ways to cut costs
Posted in News on Monday, February 16th, 2009 at 5:42 pm by Education Reporter Rachel Canelli

Like many people and businesses in this recession, Neshaminy officials are going to have to get creative when it comes to the school district’s budget.

So, they’re open to suggestions-from anybody.

That’s why the focus of the next two strategic action committee meetings at 7 p.m. March 2 and 16 in Maple Point Middle School on Langhorne-Yardley Road will focus on ways to trim the fat of the $167 million 2009-2010 preliminary spending plan, administrators said.

Due to increasing health insurance costs, the next school year’s expenses are estimated to be up $4 million from the current $163 million working budget. Projected at $153 million, revenues, though, are down almost $3 million from last year, according to business administrator Joseph Paradise.

If they were to fill the current $14 million gap, that could mean a $500 tax increase for homeowners with an average $27,080 assessment. But officials said they expect to cut the deficit to at least $5 million by applying for exceptions and coming up with other ways to cut costs.

The current millage rate is 148.6 and the value of one mill in Neshaminy is $767,884, administrators said.

Neshaminy is allowed to raise taxes by 4.1 percent, according to state tax law Act 1. That equals 6 mills, or $4.6 million, officials said.

Administrators said they don’t want to rely on using some of the $1.2 million fund balance, as they have in years past because the savings account has been dwindling and they’re afraid it won’t replenish itself.

Neshaminy is applying for about $3.3 million (2.9 percent, or 4.32 mills) in exceptions. Those exemptions are: $595,558 (.52 percent, or .78 mills) for special education; and almost $2.7 million (2.38 percent, or 3.54 mills) for maintaining revenues, officials said.

If approved, those exceptions would give the district a total allowable increase of $7.9 million in taxation- 7 percent, or 10.32 mills, administrators said.

Even after using the exceptions officials would still need to come up with $5 million to balance the budget.

The district could see additional savings and revenue from renting the Tawanka Learning Center and Neshaminy Middle School this summer and moving the ninth grade up to the high school this fall.

Administrators are already reducing overtime, eliminating travel and freezing any unnecessary expenditures.