- (GantDaily Graphic)
CLEARFIELD – The Clearfield Area School District Board of Directors again mulled its 2011-12 budget at Monday night’s workshop meeting but postponed setting its real estate millage until updated figures have been plugged in.
When asked for a show of hands by board President Dave Glass, board members Rick Schickling and Phil Carr indicated they would only approve the budget with a zero millage rate. Later, board member Jennifer Wallace, too, said she was “leaning” in the same direction.
According to Business Administrator Sam Maney, the district raised property taxes by 3 mills in both 2008-09 and 2010-11 and averaged a 2-mill increase over the past three years. There wasn’t any increase in 2009-10, he said.
The Pennsylvania Department of Education’s index only allows school districts to raise real estate taxes to 1.8 mills next year unless it’s otherwise approved by a voter referendum or exceptions by PDE. Further, the state approved the district’s application for exceptions, which in turn would allow it to increase property taxes to 6 mills.
“I’m thinking more toward 4, 5 or 6 mills rather than 1, 2 or 3,” Glass said. Board member Dr. Michael Spencer said while he’d love to say the district could go without an increase, he thought it should consider going above the state’s index.
However, board member Tim Morgan voiced interest in reviewing updated budget paperwork before juggling the numbers involved in a real estate tax increase. At the same time, if the district opted not to increase real estate taxes this year after losing $2 million in state funding, he believed the fund balance would run dry within two years. He also feared the district would be “in the hole” within three years.
Board member Mary Anne Jackson advised the board that if a 4-mill increase was enacted by the district, a resident with a home valued at $60,000 would see their property taxes increase by $60 next year.
The current budget proposal estimates $31, 155,562 in total revenues and $33,293,168 in total expenditures. But teacher retirements and a zero percent increase to health care benefits attributed to a “big savings” for the district, Maney said.
Because of the retirements of 11 teachers this year, the district plans to collapse 11.5 positions except for half of a speech position. The district saved approximately $1.1 million by doing so, Superintendent Dr. Thomas B. Otto said.
According to him, the district currently employs 41 teachers who are 55 years or older. After this year’s retirements, 30 teachers within the age group remain employed by the district, and 10 to 15 teachers could possibly retire next year.
Nearly all of next year’s retirees would have to be replaced with new hires. However, those incoming replacements would start out at salaries lower than those paid to the district’s current veteran teachers. It would result in a salary savings of about $25,000 per position next year.
Maney indicated health care benefits were projected to increase by 10 percent for the upcoming year. But the consortium voted for a zero percent increase in 2011-12, resulting in a savings of around $400,000 for the district.
While indicating the district’s areas of savings, Maney also noted the costs endured by the district for tuition to cyber and charter schools. Based on current student enrollments, he projected an expense of $965,000, according to budget paperwork.
Otto advised that Assistant Principal Heather Prestash had recruited six to eight students who were currently attending other cyber schools to return back to the high school next year. “She’s really been recruiting, and I’m hopeful (more will return),” he said.
When asked, Maney acknowledged the returning students hadn’t been included in budget figures. Otto said that Prestash wouldn’t have concrete numbers before the budget must be adopted in June. Maney said he intends to meet with Prestash to determine a closer estimate.
Glass asked the board to consider cutting the district’s contingency fund by one-half to $125,000. Maney said he’s “always fearful” due to the age and conditions of the district’s buildings, and he doesn’t want to overspend the budget.
Glass said that 99 times out of 100, the district would never utilize its contingency fund. In the case of an emergency, it would likely “blow right through it” and depend upon the fund balance anyway.
In addition, he had heard the legislature may eventually eliminate all referendum exceptions, which currently permit school districts to seek approval of real estate taxes that exceed its state index.
“This may be our only opportunity at revenue,” Glass said.