The Daily Local (dailylocal.com), Serving Chester County, PA
Spring-Ford Area to pursue exceptions enabling tax increase
School officials facing $10.4 million deficit
Wednesday, January 26, 2011
By Phil Ellingsworth Jr., Special to the Local News
ROYERSFORD — With a $10.4 million deficit looming over the Spring-Ford Area School District in its 2011-12 budget, administrators are looking to get exceptions to the state's Act 1 index, preparing in case it would need to raise taxes.
Spring-Ford is looking to get the exceptions because the index currently stands at 1.4 percent, but with the district trying to close a substantial deficit gap, it would like to have the option available, District Business Manager Timothy C. Anspach said during a budget presentation to the public and school board.
Although officials would have the option available, it does not necessarily mean they would utilize those exceptions, Anspach said.
If the district were to take the exceptions, the Pennsylvania Department of Education would allow Spring-Ford to raise taxes to a maximum rate of 7.6 percent, bringing in $6.1 million.
At this time, the district has not set a tax increase because officials have time to balance the budget and work on the deficit before the June 30 final budget deadline, he said.
Administration is exploring the exceptions because of increased costs in certain areas, including more than $778,000 in special education, $2.1 million in instruction, health care costs totaling $1.2 million and more than $837,000 in Pennsylvania Public School Employees' Retirement System contributions.
The main expenses Spring-Ford is facing in its 2011-12 budget and must address before the June 30 final budget deadline are increases in several different areas, including $1.4 million in salaries, $3.7 million in benefits and $1.6 million in other expenses, he said.
Compounded to the increased expenditures, the district is also facing the reality of decreasing revenues, such as the end of monies coming from the American Recovery and Reinvestment Act of 2009, and approximately 30 companies based inside Spring-Ford applying to Montgomery County for property reassessment, something that could cost the district much as $4 million, Anspach said.
To address chip away at the deficit, administrators are looking at operational costs, personnel, salary and benefits, he said.
The board plans vote on the proposed preliminary budget at its Feb. 14 board meeting.
All Pennsylvania school districts are required to submit a preliminary proposed budget to the state by Feb. 16.
URL: http://www.dailylocal.com/articles/2011/01/26/news/srv0000010737755.prt
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