East Penn Preliminary Budget Raises Taxes

The East Penn School Board took the first step Monday to exceed its tax increase cap by approving a 2011-2012 preliminary budget that calls for 4.8 percent tax increase.

Board members stressed that the eventual tax increase will be smaller by the time they have to approve the budget in June.

“We have to look at all the possibilities where we can save some money,’’ said board Vice President Elaine Gannon, adding that she prefers to see a final tax increase closer to the state’s cap of 1.4 percent.

Board directors Rebecca Heid, Michael Policano and Julian Stolz voted against approving the preliminary budget.

“I have trouble stomaching a 4.8 precent tax increase,” said Heid.

 The $122 million preliminary budget would be raised taxes from 45.32 mills to 47.49 mills and would also take money from district’s $5 million reserve fund, which troubled some board members.

The approval of a preliminary budget this early in the year is only a formality necessary to qualify the district for special exceptions that would allow it to exceed the 1.4 percent tax increase limit that the state has imposed on the district, explained Board President Charles Ballard.

“This is a required step only," said board director Alan Earnshaw. “There are so many unknowns this far in advance.”  Ballard said there was “much time before June to consider budget cuts.”

Several district residents asked the board to cut spending to limit tax increases, including freezing wages for district employees. Ballard replied that wage increases were set by previous union contracts that cannot be changed. A resident suggested the district could save $62,000 a year by having school employees volunteer to advise school clubs instead of paying them.

Resident John Donches told the board it could raise $94,000 a year by charging students a dollar a day to park their cars at the school.  Board members Terry Richwine and Julian Stolz said they favor student parking fees.

In other business, the board announced school will be open March 11 and the Thursday before and the Monday after Easter -- April 21 and 25 -- to make up for the extra three days that schools were closed due to snow.

Ballard also urged residents to oppose the school voucher system that is being proposed by state lawmakers.

"I think taxpayers need to get on this right away," said Ballard.

The plan, which would give $8,000 vouchers to parents to send a child from a poor-performing school to another public or private school “is ripe for manipulation and fraud,’’ said Richwine.

Ballard said the proposed voucher system has “no accountability provision” and that private schools favor the plan because they would receive the voucher money from the students that transfer to them.