So, HAVING Money is Bad Too?

From the BCCT

School district sees huge losses
By JOAN HELLYER

The district could lose as much as $2.2 million in interest income alone during the coming school year.

The recession likely will cost Council Rock between $5.4 million and $7.3 million in lost revenue during the coming school year, a district official told the school board.

The funds would have come from four areas where the district had experienced annual financial gains, said Robert Schoch, district business administration director.

This is the second year district officials are projecting a smaller revenue growth percentage than previously for its real estate and local income taxes, realty transfers and interest income, he said Thursday.

The real estate tax revenue, for example, will increase just a half percent over its current rate, instead of the normal 2 percent the district experienced prior to the recession, Schoch said.

He gave "best case" and "worst case" scenarios of the potential loss for each revenue source:

? The best case scenario for real estate revenue losses is about $900,000 and the worst case is $1.5 million.

? Lost interest income will be between $2 million and $2.2 million.

? Realty transfers will be between $1.7 million and $2.3 million less than what would have previously been collected.

? In terms of local income tax revenue, the best case scenario is a loss of $750,000 and the worst case is $1.27 million.

District officials are trying to figure out how the revenue losses will impact the 2009-10 budget, Schoch said.

In an effort to offset that impact, the district is trying to keep as many contracts as possible at the same rate as the current year, Schoch said.