Seneca Valley Preliminary Budgeting Process Off to an Early Start

Thanks to the upcoming presidential election, the preliminary budgeting process for the 2012-13 school year already is underway at

“Were looking at a plan of action in January instead of February this year,” district Business Manager Lynn Burtner said at Monday’s school board meeting.

Under the Taxpayer Relief Act, commonly known as Act 1, school districts must introduce a preliminary budget 110 days prior to the primary election, which usually occurs in May.

Because the 2012 presidential primary election is scheduled for April, Burtner said Seneca Valley would need to move on its preliminary budget by the Jan. 4 school board meeting.

District officials will have to decide if they will adopt a resolution saying they will not raise the rate of taxes by more than the 2 percent index calculated for the district under Act 1. For Seneca Valley taxpayers, that equals 2.11 mills.

“If we adopt the resolution then we have to stay within that index,” Burtner said.

Their other choice is to have a proposed preliminary budget for 2012-13 school year available for public inspection. The move allows the district to apply for exceptions if officials want to raise taxes beyond the allowed index. It also gives the district permission to ask taxpayers to approve an increase by a referendum vote in the primary election. 

Burtner recommended having a preliminary budget ready for the public’s view rather than approving a resolution to stick within the index. That does not mean the district plans to raise taxes beyond the index.

“It allows us to keep our options open,” Burtner said.

After facing a $10 million shortfall for the current school year, that included a 5.6 mill increase in property taxes and the curtailment of a half-dozen district programs.

Looking ahead, Burtner said she doesn’t anticipate such a large funding gap next year. Still, balancing the budget won’t be easy, she said.

The district’s biggest hurdle is funding the Public School Employees’ Retirement System, she said. Because of falling interest rates, Burtner said the district has to increase the amount of its employer contribution. That amount is still unknown, but Burtner expects it to be significant.

“We’re seeing it rise very, very rapidly,” she said.

Burtner also presented the board with a chart comparing the tax amounts Seneca Valley residents pay with the tax amounts paid by residents living in nearby school districts.

According to her calculations, a Seneca Valley resident whose home has a market value of $100,000 pays about $1,446 in property taxes. A resident of the North Allegheny School District with a home at the same market value would pay $2,026. In the Mars area, that amount would be $1,356, she said.

The chart also included comparable tax amounts for homeowners in Mt. Lebanon, Upper St. Clair, Quaker Valley, Hampton, Butler Area and more.

In most cases, Seneca Valley had lower tax amounts than other districts across the greater Pittsburgh area.

“It is my personal opinion that when you look at this chart, you’re getting a great deal at Seneca Valley,” said.

The  chart is available for review online at the Seneca Valley School District website.