Seneca Valley Approves Final 2013-14 Budget with 2.75 Mill Tax Hike

In a 6-1 vote, Seneca Valley officials at Monday’s school board meeting gave final approval to a $101,007,381 budget for the 2013-14 school year with a 2.75 mill increase in real estate taxes.

School board member Eric Gordon voted against the increase. School board members Kelly Kopera and James Welsh were absent from the meeting.

Gordon said he felt the budget “didn’t go far enough.”

“I just think we could have done better to protect taxpayers from future tax increases,” he said.

Expenditures for the budget total about $101 million. Revenues are estimated at about $99.5 million. By raising taxes 2.75 mills, the budget covers a $1.44 million shortfall for next year.

Originally, a $2.8 million funding gap was predicted for the 2013-14 school year. Through personnel attrition, benefits savings and other factors, officials were able to slash that number almost in half.

What Does it Mean for Taxpayers?

District Business Manager Lynn Burtner has said the average market value of a home in the district is about $175,000. Those homeowners can expect to pay an additional $64 in school taxes per year with the increase.

Homes with a market value of $75,000 can expect to pay an additional $28 in school taxes while homes with a market value of $250,000 will see an estimated $94 annual increase in school taxes.

One mill of property tax is valued at $525,000, up from $515,000 last school year. The increase will bring the district an extra $265,375 at the current tax rate, according to Burtner. 

Seneca Valley By the Numbers

Superintendent Dr. Tracy Vitale has noted 17 teachers are retiring this year. Under the final budget, three of those positions won’t be replaced. Newer teachers at lower salaries will replace the 14 other educators who are retiring.

The budget also calls for 1.5 furloughs at the secondary level. A cut in secondary English and Science programs also will cause two veteran teachers to move into other positions, Vitale has said.

Under the 2 percent inflationary index set by the state, Seneca Valley was allowed to raise property taxes by 2.2 mills. 

The state also approved the district to raise taxes by an additional 3.3 mills under Act 1, bringing the total amount Seneca Valley was allowed to raise taxes to 5.5 mills, although officials chose not to do so.  

Also known at the Taxpayer Relief Act, Act 1 permits district to increase property taxes above the inflationary index.

Although no one spoke at Monday's meeting, School Board Vice-President Eric DiTullio has in the past taken issue with the the district’s increased contributions to the state-mandated pension system.

He noted the 2012-13 employer contribution rate for the state-administered Pennsylvania Public School Employees Retirement System is 12.36 percent of every school employee salary, which equals about $5.6 million. The employer contribution rate for the 2011-12 school year was 8.65 percent.

For the 2013-14 school year, the employer contribution will increase to 16.93 percent, or about $8 million, and is expected to continue to increase.

At the time, DiTullio urged residents to lobby state house and senate representatives for pension reform

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