Kindergarten, Charter Schools Top Talk As Budget Season Starts

Full-day kindergarten and charter schools remained hot-button topics for the on Wednesday as business director Jack Myers presented a draft preliminary 2012-2013 budget that would hike the average tax bill by $89.

Myers told the school board that one of the big decisions to be made before the budget gets final approval in June is whether to expand the district's pilot full-day kindergarten program. Currently, there is one full-day class at each of the six elementary schools with students chosen by lottery. Those not picked in the lottery attend half-day classes.

Last budget season the board decided against a planned program expansion, citing financial constraints.

Myers suggested Wednesday that the board could take the first of two steps toward universal full-day kindergarten by doubling the number of classes for 2012-2013 at an additional cost of $200,000. The current funding is $240,000.

He tied in the heated topic of charter schools by saying the extra cost would be covered if 18 township youngsters attended public school kindergarten rather than charter school classes.

"There are parents who put their kids in charter schools because of their full-day kindergarten classes," added board President Heather Nicholas.

Myers explained that the tentative spending plan includes $426,000 to cover the cost of local students who attend the township's one charter school, School Lane. But it does not include any similar funding related to four pending charter school applications that include an expansion of School Lane's program to include high school students.

Board member Ralph Douglass asked if funding for charter schools is increased in the pending budget. Myers said yes because it is safe to assume that 30-40 more students will be entering School Lane alone. That increase, he said, is $425,000.

Board member Matthew Grodksy asked several questions, including how the current program is funded. Myers explained that a state grant has been used and he is optimistic that such funding, which began in 2007-2008 and totaled $272,868 this year, will continue.

The draft preliminary budget totals $123.2 million. That compares to a 2011-2012 budget approved in June of $118.75 million. But Myers has said the revised current school year budget stands at about $122 million largely because of increased special education costs and a deferred transfer to the district's capital reserve.

Myers told the board he foresees $117.7 million in revenues and $123.2 million in expenditures and transfers. With a planned tax hike that would raise the millage rate from 141.4 to about 145.5, the district would have to use $2.37 million of its fund balance.

That would reduce the fund balance from about $10 million this June to about $5.3 million in June 2013, Myers said.

Board member Elizabeth Cerasi expressed concern.

"That seems to be slipping to a danger zone," she said.

Myers said the state suggests a minimum fund balance of 4 or 5 percent. That would set the district's minimum fund balance between $4.9 million and $6.1 million.

"If you budget more than 8 percent, you can't raise taxes," Myers added.

He stressed that the pending budget will be constantly tweaked before June.

As it stands now, a homeowner assessed at the township median of $22,000 would see a school tax hike of $89.21.

Myers said employee pension costs, rising by close to $2 million, are the biggest reason for the pending increase.

Since negotiations with teachers are ongoing after their contract expired June 30, Myers declined earlier this week to comment on budgeting for teacher salaries. But Wednesday night he told Patch the draft budget does not include any teacher salary increases for the current year.

The last contract granted annual 3 percent pay hikes in each of five years for the 450 members of the Bensalem Township Education Association.

As is the annual custom, the budget contains funding for five additional teachers, Myers has said. That totals about $400,000.

Myers pointed out the state budget doesn't usually get approved until February and he doesn't expect any increase in state aid.

The school board intends to adopt a preliminary budget Jan. 25; hold another work session Feb. 22; adopt a proposed budget May 9; and hold a question-and-answer session May 23. Final budget adoption is set for June 13.