Wissahickon Sits On 18th Largest Savings in PA

With the Wissahickon School Board preparing to vote on Monday, June 11 on the final proposed 2012-13 budget, which includes no tax increase to residents,  a new report by the PA Independent has ranked the district 18th in the state in terms of its uncommitted general fund balance, which stood at about $19.05 million last June 30, when the numbers were compiled. 

According to budget documents published by the district, Wissahickon’s fund balance is estimated to have $17.71 million at the beginning of the 2012-13 school year. Across Pennsylvania, the PA Independent estimates that school districts are sitting on about $3.2 billion in savings.

Declining property values have pinched school district finances across the country over the past few years. Even after expenses are cut, many districts are forced to choose between hiking property taxes and dipping into savings.

The Pennsylvania School Boards Association advises districts to only dip into cash reserves for one-time expenditures. Pulling more than 10 percent out of savings in a single calendar year has the potential to impact a school district's creditworthiness, making it more expensive for a district to borrow money through bond issues and other measures.

The Wissahickon School School Board has voted not to raise taxes in the 2011-12 school year nor the for the 2012-13 school year, relying on the fund balance to help balance the budget.

About 70 percent of the state's 500 school districts are drawing on their general reserve funds in their preliminary budgets, according to the PA Independent. 

The Wissahickon School Board is expected to vote on the 2012-13 budget at the June 11 meeting. Meetings at held at the at 7:30 p.m. and are open to the public.