Updated: School Board Approves 2.92% Budget Increase

Springfield School District Board of Directors May 19 approved a $62 million general budget for the 2011-12 school year at first reading that includes a $115 average tax increase for homeowners.

The $62,174,959 budget reflects a 2.92 percent increase from last year.

The board anticipated a 3.23 percent increase in its proposed general budget, but the final proposed general budget reflects a 2.92 percent increase from 2011-12.

Homeowners will pay .028 cents on the dollar of their assessed home value in school taxes. The average home value here this year is $145,580.

The average property tax for 2011-12 is estimated at $4,079, a $115 dollar increase from last year’s $3,963.

Real estate taxes account for $47,529,021 of the 2011-12 proposed final budget. Of that, $46,309,824 will be collected at a 96.5 percent projected collection rate.

Executive Director of Operations, Donald Mooney, said the economy has impacted the district’s investment earnings and assessed property values.

The addition of two commercial properties, a Target and a Giant Food Store, increased the district’s overall property assessment for the year, he said.

The district’s total assessment for 2011-12 is $1,769,950,031.

The proposed budget is $236,491 under the maximum budget cap permitted by the Pennsylvania Department of Education.

Under Act 1, districts may not increase budgets by more than a 1.4 percent index without holding a taxpayer referendum.

The budget includes $847,293 in allowable Pennsylvania Department of Education Act 1 exceptions (over 1.4 percent.) Exceptions include $393,814 in special education costs and $453,479 for state pension fund costs. All exceptions increase the budget by 1.52 percent for an overall budget increase of 2.92 percent.

The district anticipates a $750,000 loss in state subsides for 2011-12 with a $217,000 decrease in state funding for basic education and a $352,000 decrease in social security subsides.

Compensation and benefit costs are projected to increase by $750,000.

The district expects a $475,000 increase in special education costs from last year but state funding for special education will remain flat.

The regular education cost per student is $11,222 for elementary and secondary students per year;special education cost per student is $24,224 for elementary and secondary schools per-year, Mooney said.

Increases in special education cost include a projected $280,000 increase in purchased professional and property services.

“We’ll have to make it up with local tax revenue for increased costs,” Mooney said.

Increases in employee pension are also a concern for the board.

Monney said there is $1.6 million in employee pension cost reserve “to allow for smoothing of the increase over a period of years.”

Wages account for 48 percent of the budget. Reduced salaries and benefits decreased spending by $180,000. The board is trying to reassign those staff members’ responsibilities among existing employees.

Mooney said the district has hired two certified staff, due to enrollment increases in elementary schools.

Total district enrollment is up by 143 students with 36 more in high school and 113 more in elementary schools.

Final vote on the budget resolution will take place June 16, prior to the June 30 Pennsylvania Department of Education deadline.