Adding Up: Seneca Valley Talks Budget, Agrees on Internet Ad Sales

The budget—and the proposed millage rate that goes along with it—was the center of discussion Monday as Seneca Valley school board members prepare to vote next week on a finalized spending plan.

approved a proposed $97.2 million budget that closes a —and includes a 4.4 mill increase in real estate taxes.

After arguing in favor of instead raising property taxes by 3.9 mills, school board member Jim Nickel was the lone dissenting vote

Each mill of tax yields about $500,000, meaning .5 mills would generate about $250,000.

Nickel previously had suggested reducing the contingency fund, which is money reserved for emergency repairs or other unexpected expenses. He pointed out the district spent an average of about $450,000 per year in the last five years of the money reserved in the contingency fund. For the 2012-13 school year, the district’s proposed budget includes a $750,000 contingency fund.

Nickel on Monday reiterated his desire to increase property taxes by 3.9 instead of the suggested 4.4. mills. He said he believes the district would be able to maintain its current fund balance—which is about $10 million—with the lower millage increase. The district typically uses the fund balance to make payroll in the summer months because tax money does not start rolling until late September.

Board member Jason Wehrle disagreed with Nickel’s stance and said dropping the increase to 3.9 mills would be a shortsighted move for the district. He added the extra $250,000 generated by half a mill could be used save teaching positions and district programs or pay down debts.

Nickel also said he believes the district would operate efficiently enough through next year that expenses will come in under what was forecasted. He also had faith additional revenue sources would pop up next year, including money generated by two new deals.

Two New Deals for New Revenue

Officials on Monday approved an extended day services agreement (for before and after school care as well as extended kindergarten care) with Stepping Stones, Inc. District spokeswoman Linda Andreassi said Stepping Stones, Inc. would pay Seneca Valley to hold its services at each of the district’s four elementary schools. The parents who utilize the service would contract with Steeping Stones, Inc. to pay for their child’s care, Andreassi said.  

She said the agreement would bring in about $52,000 in revenue for the district.

Seneca Valley board members also approved an agreement with Thought Process Enterprises to solicit Internet advertising for the Seneca Valley School District website.

Andreassi said this would be at no cost to the district. Thought Process Enterprises, which is based out of Ellwood City, would take care of finding advertisers for Seneca Valley’s home page, individual school home pages and the district athletic page. Seneca Valley would share proceeds from the sales in a 55/45 split with Thought Process Enterprises, Andreassi said.

The district also would have final approval over the ads to make sure they are appropriate for school-age children. Andreassi estimated web ad sales could put an extra $35,000 per year in the district's coffers in the first year.

Superintendent Dr. Tracy Vitale noted Seneca Valley would be one of the first districts in the state to have advertisements on its website. She expected other school district would soon follow Seneca Valley’s lead.

“This is a way we can generate some revenue,” she said. “This is a way to relieve possibly in the future some of the tax burden.”  

The district also expects to find savings in a new five-year-contract for the custodial staff school board members unanimously approved Monday. Burtner said the 31 custodial workers agreed to take a pay freeze for the first year of the contract, which goes into effect July 1. The workers also agreed to open negotiations after the third year of the contract to discuss wages and benefits for the fourth and fifth years of the agreement.

The Final Vote

School board members are expected to vote on the finalized budget June 25. Based on the proposed budget, Burtner has said taxpayers with homes at a $100,000 market value could expect to pay an average of about $60 more in taxes per year. For residents with homes with a market value of $200,000, the amount doubles to an additional $120 per year. 

Officials also have warned next year’s budget shortfall is just the beginning.

Vitale has predicted that, even with a two-percent tax hike each year,

Many of the costs, including state-mandated pensions, cannot be reduced, she said. Also presenting a challenge is district payments to cyber charter schools. Seneca Valley is billed for children who live in the district, but who chose to enroll in cyber charter schools. The tuition costs range from $8,787 to $18,164 per child, depending on need, Vitale said in an open letter to parents posted on the district.

“The state does not reimburse Seneca Valley any of these costs,” she wrote. “All local taxpayers pay this bill. This year, despite having our own cyber service option, Seneca Valley was forced to pay out $1.7 million to these schools.”

Noting school districts have no control over teacher pensions, school board Eric DiTullio also implored the public to write to their local legislators demanding a change in the way public education is funded.

“Regardless of how much we tax, the cuts are going to keep coming until we have pension reform and Wisconsin-style union reform,” school board vice-president Eric Gordon added.