Pennsbury Tax Increase

From the BCCT.
Pay attention: These are the taxes the Emperor wants you to pay.

Board looks to make budget cuts
By MANASEE WAGH
Bucks County Courier Times

The preliminary spending plan calls for a $441 average tax increase.

Pennsbury board members said they're anxious to slash estimates that point to skyrocketing taxes next year.

The preliminary budget plan passed by the board Thursday night calls for a $441 tax increase for a homeowner with the average assessed property of $31,304.

Residents who attended the meeting said they weren't happy with the prospect of paying an average tax bill of $4,980.

"I can't understand why no one talked about a tax decrease. Workers are being laid off [in other industries]. Why not in the school district? I'd like to see a 10 percent decrease in our taxes," said Leo Cohen.

The budget numbers for the next school year appear high at this point because the district doesn't know how much funding the state will supply, officials said. While local revenues might generate $145.3 million, that's $2.6 million less than last year, they said.

The main local downturn is because of the loss of fees from the Keystone Industrial Port Complex, a tax abatement area which is scheduled to end payments to Pennsbury in lieu of taxes after this year. The complex is on the site of the old U.S. Steel Fairless Works.

Other tax revenues are expected to be down, as are interim taxes on new construction and transfer taxes on real estate. The district also expects lower interest returns on its investments, officials said.

The economic downturn has contributed to a deficit of about $12 million in a $180 million budget, Miller said. Balancing the budget without reducing expenses would mean an increase of 14.1 mills, bringing total millage to 159.1.

Board members have repeatedly stressed that the preliminary budget is just an early estimate that is required by the state. Several spoke against allowing the final tax increase to reach the current projection of a 9.7 percent increase, which is far above the state's mandated maximum tax increase of 4.1 percent.

"I can state that our budget will not increase 4.1 percent. Nine point seven is just a number. It's not a fact," said board member Richard Johnson.

Officials said the district is working on several areas to lower expenditures, including transportation and energy efficiencies and employee attrition at all levels. If one teacher retires and the school can adjust the professional staff to cover that teacher's responsibilities, then the administration would recommend not hiring a replacement, district CEO Paul Long said.

The administration is considering an optional reduction in the number of classes taken by seniors who have fulfilled their graduation requirements. There also might be some reduction in standardized testing and in the Extra-K kindergarten programs. Pulling funding for Odyssey of the Mind is possible. All of those options still need to be explored and worked out, said Long.

Board member Linda Palsky suggested trying to get more private corporations to fund programs and resources.

To keep their promise to limit a tax hike to at or below 4.1 percent, a 5-4 majority of the board defeated a proposal to apply for state exceptions. Proponents of the administration's recommendation to apply for the exemptions said the district would have no insurance against a possible financial shortfall such as zero state subsidies. Exceptions allow school boards to raise taxes above the state-mandated 4.1 percent limit for uncontrollable costs such as special education and grandfathered debt.

Johnson and board members Gene Dolnick, Wayne DeBlasio, Arlene Gordon and Gregory Lucidi voted against the exceptions.

"I cannot vote for a 4.1 [tax increase], so there will be no way that I would vote for exceptions," said Gordon.

The details of the preliminary budget can be found on the Pennsbury Web site at www.pennsbury.k12.pa.us/pennsbury.