Seneca Valley Approves Proposed Budget with 2.75 Mill Tax Increase

For the first time in at least a decade, Seneca Valley officials unanimously agreed on a school budget.

At Monday’s meeting, school board members voted 7-0 to approve the $101,007,381 proposed budget for the 2013-14 school year with a 2.75 mill increase in real estate taxes.

School board members Eric Gordon and Kelly Kopera were absent from the meeting.

Board president Bob Hill noted this is the first time since he was elected in 2000 that he can remember officials unanimously voting on a spending plan.

Proposed 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 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. 

Calling for Reform at the State Level

Board Vice-President Eric DiTullio, who voted against last year’s 4.4 mill tax hike, said he examined the numbers closely before giving his approval to this year’s proposal.

Along with state requirements regarding special education funding, he took issue with the district’s increased contributions to the state-mandated pension system.

For example, in the 2012-13 school year, the 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, Burtner said. Officials also have predicted the employer contribution rate will continue to rise over the next several years.  

DiTullio noted Seneca Valley is required to pay the contribution up front. The state is expected to reimburse the district for about half of what the district pays into the system. He also urged residents to lobby state house and senate representatives for pension reform

“This is a state problem and we’re being forced to do their dirty work for them,” he said. 

Board member Jim Nickel also praised Seneca Valley's administration team for running the district in an economic and efficient manner.

He added that while the employer contributions for PSERS have increased, the district has been frugal with its expenses.

"I’m going to continue to support this administration team, who continue to work to run this district in a lean fashion while trying to provide and working to provide the quality education we want," he said.

Seneca Valley By the Numbers

Superintendent Dr. Tracy Vitale said 17 teachers are retiring this year. Under the proposed 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 said.

Under the 2 percent inflationary index set by the state, Seneca Valley is 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 is allowed to raise taxes to 5.5 mills.

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

The district will need to raise taxes by 2.75 mills to balance the budget, according to school officials.

With Monday’s approval, the proposed budget will now be on display to the public through mid-June.

Officials are expected to vote at the June 17 school board meeting on whether to adopt a final budget.

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