TAX NEWS - 2010

Pennsylvania Tax: Millcreek School Board approves budget with tax increase

After three years without a tax increase, the Millcreek School Board voted in favor of one for 2010-11.

The board on Monday approved an $85,841,736 budget for the coming year that raises taxes $49 for the owner of a property assessed at $100,000.

"This was a very difficult year for us," Millcreek schools Superintendent Michael Golde said.

In addition to the tax increase, which is expected to generate about $1.4 million, the board gave the OK to using about $400,000 from district savings to balance the budget.

Without the tax increase and fund balance money, the district's revenues fell at about $83.9 million, compared with $85.8 million in expenditures.

Golde said local revenues make up about 64 percent of the 2010-11 budget.

He also said the district's revenues, including federal stimulus money, were down more than $3.8 million for the coming year.

Golde said salaries and benefits account for about 68 percent of expenditures.

Expenditures, including wages and contributions to the state employee retirement plan, were up about $3.4 million, he said.

School Director Michael Kobylka said he wanted to use more money from the fund balance and not burden taxpayers with as much of an increase.

"It's a tough year for taxpayers," he said.

Kobylka proposed a tax increase of only about $30.

Golde called that "fiscally irresponsible," saying that using more from the fund balance could affect both the state prescribed maximum tax increase for the following year and the interest rate on future bond issues.

School Director Brian Kramer said he doesn't like paying tax increases either but believed in the budget as presented.

Kobylka's amendment calling for a lower tax increase failed for lack of a second.

He and School Director Ron Wilga voted against the final budget, which the other seven directors supported.

In a related matter, the board approved three administrative personnel changes that Golde said were done for "pure and simple money."

The board abolished the position of accounting supervisor in the business office, held by Kara Onorato, effective at the end of the month.

The board also abolished the position of elementary curriculum supervisor held by Shelly Bentley. She will be offered a job as a sixth-grade math teacher, Golde said.

Because Bentley's position was eliminated, those duties will be taken on by the secondary curriculum supervisor, Susan Greenaway, who will become just curriculum supervisor.

Golde said the moves will save close to $250,000.

During the public comment portion of Monday night's meeting, which came before the budget vote, only one person spoke up on the final spending plan. It included the same tax increase as the preliminary budget passed in May.

Tom Albert said that as a taxpayer, he hoped for no increase, but as a former school director he realized the effect the decision would have and encouraged the board to keep students in mind.

In other budget business, the board voted 7-2 against the 2010-11 Erie County Technical School budget.

Millcreek's share of that is $998,618.

Voting in favor of it were School Directors Terry Scutella and Kobylka.