Triple-Digit School Tax Hikes Foreseen

The future may be bright for students of the .

The future for taxpayers? Not so much.

At a budget work session Wednesday night, Superintindent David Baugh made a presentation on program priorities, which includes his recommendation for universal full-day kindergarten. Business director Jack Myers, meanwhile, presented a three-year financial view.

Expenses in the current 2012-2013 proposed budget stand at $124.1 million, with about $4 million of fund balance being used to close a revenue gap.

The current school year's budget was approved at $118.75 million. When the new budget was introduced in January, expenses stood at $123.2 million. Myers has explained that figures change between introduction and final adoption in June.

The new budget carries an average $89 increase for township homeowners.

But Myers estimated that residents should expect tax increases of $160 and $175 in the following two years, mostly to fund what is expected to be a $45 million renovation of the high school. A bond issuance for that purpose is expected in November 2013.

Myers also pointed to several factors out of the district's control including shrinking state revenue, increasing state pension contributions and what he described as an unfair state formula for funding charter schools that costs the district $1 million a year.

He also said the district's fund balance could fall from $6.7 million, or 5.3 percent of the district budget, to $1.99 million, or 1.4 percent, in 2014/2015. He previously told the board the state recommends a fund balance of 4 to 5 percent.

The large projected drop prompted board member Matt Grodsky to question the impact Wednesday night.

"This sounds all bad," Myers responded, prompting muted laughter among board members. "But if you know about it early, you can work on it now."

A positive for the future, he said, is that the refinancing of a 2002 bond, callable in August, should save the district about $4 million over the next ten years.

Looking at next year's budget, Baugh said he is recommending a program expansion to universal full-day kindergarten. He said the idea has been discussed since the 1970s. The current pilot program -- with one full-day class in each of the district's six elementary schools -- began in 2007-2008 and was expected to be expanded last year.

"Now is the time to do the right thing," he said. "It's our investment in the future."

Myers said the kindergarten expansion is expected to cost $500,000 to $600,000. He said that cost can be offfset by savings in bond refinancing and natural gas costs.

Baugh also said he wants to see the implementation of a Science Technology Engineering and Math Academy, starting with grade 9 in the fall before expansion. Myers said the money for hardware for the STEM Academy could be taken from capital reserves. There also would be training costs, he said.

Baugh said he is counting on "reasonable" contract settlements with teachers, whose last pact expired in June, and four other bargaining units whose deals expired this June.