TAX NEWS - 2010

Pennsylvania Tax: Owen J. Roberts School Board OKs 2010-11 budget

SOUTH COVENTRY — The Owen J. Roberts School Board approved a final 2010-11 budget that will raise the millage rate by .67 mills, but won't result in a tax increase for the average homeowner.

The $82,457,682 budget total represents a 4.17 percent increase over the 2009-10 $79.16 million budget, and it will require a tax hike of 2.6 percent. That equates to a $124 increase to the property tax bill of the average homeowner in the district with a house assessed at $185,400, according to district Business Administrator Jaclin Krumrine.

However, the district will receive $1,525,890 in state gaming funds to offset tax bills of each qualified homestead by $170. Therefore, the average homeowner will see a net decrease of $46.

The board voted 8-1 to approve the budget, with board member Debbie Bissland casting the dissenting vote. Bissland explained her decision to oppose the budget, saying she would have preferred to see no tax increase so that every household in the district could have realized a $170 decrease in their tax bills.

"The total amount of taxes we are raising is higher than the percent of the rebate," she noted.

She also pointed out that homeowners with properties assessed at greater than $185,400 would realize a decrease in their tax bills that is less than $46, and some would see no decrease at all.

Board member Barbara McMeekin, however, thanked the administration for working to avoid a much larger tax hike.

"I'd like to thank Mrs. Krumrine and her staff for their hard work and effort in getting this budget to where it is," McMeekin said.

When the board first approved a preliminary 2010-11 budget in February, the district was facing a possible $1.6 million shortfall and still looking at raising taxes by 2.9 percent — the maximum allowed the district under the state's Act 1 taxing index.

Since that time, the board and administration managed to trim $1.7 million from the original preliminary budget, primarily by making cuts in every department

Nevertheless, the budget had to cover several large expenditures next year, the largest of which is the $1.2 million cost of opening the renovated middle school.

Meanwhile, the district is also faced with declining revenues from property taxes, earned income taxes and real estate transfer taxes.

In a related matter, the board also heard the results of a town hall meeting and recent survey on the budget — both of which are intended to better guide administrators in developing future budgets.

At the town hall meeting in April, members of the community, district staff and administration formed discussion groups that answered questions about the district and the budget. Students were invited to a separate meeting to answer the same questions.

Volunteer Barbara Reisenwitz presented the results of both those meetings to the board, comparing student answers to those of the community.