Schools

Budget Time: Seneca Valley to Apply to State For Act 1 Exceptions

A proposed preliminary budget shows the school district is facing a $4.8 million shortfall for the 2012-13 school year.

In the face of a proposed preliminary budget that for the 2012-13 school year, at Monday’s school board meeting unanimously approved a motion allowing the district to apply to the state for permission to raise property taxes.

“Next, we attack the issues of closing the $4.8 million deficit,” district business manager Lynn Burtner said.

The district plans to ask the state for special exceptions under Act. 1, which would permit the district to increase property taxes above the inflationary index. For Seneca Valley, the index under Act 1—also known at the Taxpayer Relief Act—is set at 2 percent, or 2.11 mills of tax.

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Although this action would give them the option of raising taxes beyond the index, it does not mean district officials plan to do so. It also would give the district permission to ask taxpayers to approve an increase in a referendum vote in the primary election.

Burtner said the deadline to apply for the exceptions is Feb. 9. The state’s Department of Education will respond to the application within 20 days, she said.

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The district is not required to approve a final budget until June. In that time, Burtner said a lot of factors that could affect Seneca Valley’s budget, including the amount of funding provided by the state.

Officials will find out in early February what the state has in store for the district. That’s when Burtner said Gov. Tom Corbett is expected to give his budget address to the public.

Seneca Valley is facing a much smaller shortfall than it was at this time last year, Burtner said. Last May, s. It increased property taxes by 5.6 mills and curtaileda half-dozen district programs.

Although the deficit for the 2012-13 school year is smaller, Burtner said the district has fewer options to fill it. The district did not replace staff in positions lost last year through attrition, she said. Specifically, 36 teachers opted to accept an early-retirement incentive. Two administrators—including former director of transportation Kevin Prady—and three of the district’s classified employees also accepted early retirement.

“I don’t see that tool being available to use this year, ” Burtner said.

The proposed preliminary budget, which is available online on the district’s website, shows revenues for the 2012-13 school year at $94.8 million. Expenditures are at $99.6 million.

School board member Eric DiTullio said he isn’t a fan of applying for exceptions, but he said he believes exploring them is a necessary avenue. The district needs to keep all options open while balancing the budget in a way that best benefits students, he said. 

“I would hope the board does look at that as a last resort,” he said of using the 2-percent index.


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