Upper Mac Residents Likely To Pay More School Taxes In 2011-2012 Year

Taxes in the Parkland School District could go up 3.48 percent for the 2011-2012 school year, a district official said Tuesday, as officials prepare to seek state approval to raise taxes beyond the state index.

 John Vignone, the district’s director of business administration, told the school board at its meeting Tuesday that the state will only allow Parkland to raise taxes 1.4 percent, which would increase revenue about $1.27 million.

However, Vignone said, the district will seek exceptions from the state Department of Education to allow the higher tax increase, which would bring in an additional $1.8 million in revenue, a calculation based on prior year guidelines. The new guidelines have not yet been released, which could raise or lower the amount.

The district will seek exceptions related to higher special education costs and higher payments to the state employees’ pension fund, Vignone said. The state set up those categories to help pay costs that are outside districts' control.

Vignone explained later that the preliminary budget, which will be ready next week for public review, right now has a gap between revenue and spending that would actually require a millage increase in excess of 4 percent.

 “It will not be the final budget,” Superintendent Louise E. Donohue assured the board and public, however. “The proposed tax increase will come down by June.”

 Parkland School District’s millage is 38.27. A home assessed at $70,000 pays $2,679 annually.

Under a potential tax hike of 3.84 percent, the district’s millage would increase 1.33 mills, to 39.60 mills. A home assessed at $70,000 would pay an additional $93.

 Officials have been bracing for a tough -- and lengthy -- budget process as they cope with a local revenue stream hurt by an economic downturn. Among revenue concerns are lower interest earnings and reduced property assessments. Those reduced assessments alone, Vignone said, has meant a $4 million reduction in revenue for the district over the last three years.

Vignone stressed that it is very early in the budget process and that there are many unknowns, including the state funding level, enrollments and retirements. He said the district cannot furlough teachers for economic reasons.

At the board meeting, he told directors that district officials are presenting their best fiscal projections.

On the spending side, Assistant Superintendent Richard Sniscak told the board that the district has been cutting costs in a number of ways, including by saving $400,000 in petroleum purchases through a shared plan with the Whitehall School District.

Officials also continue to study the drivers’ education program, he said for example, to determine whether additional charges would be warranted for students who need additional instruction.

Sniscak told the board that officials looked at offering early retirement incentives as a cost-cutting measure, but determined such incentives would not result in district-wide savings. However, he said, personnel costs could be reduced as teachers and staff retire.

Vignone said expenditures are expected to increase less than 3 percent in the 2011-2012 budget.

Although the board does not have to adopt a budget until the end of June, it must adopt a preliminary budget by Feb. 15 under state law. The state Department of Education would then review any proposed tax increase and application for exceptions. The board must adopt the proposed budget by May 24, and the final budget a month later.