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Schools

School District Eyes Even Less State Aid

Despite $1.2 million less than thought, officials still hope to keep tax hike around $40.

The state's proposed budget, unveiled Tuesday, appears to cut aid to the Bensalem by $3.5 million, which is about $1.2 million more than expected, according to the district's business director.

Nonetheless, Jack Myers and Superintendent Bill Gretzula said Wednesday that they are still confident they can keep a proposed average tax rate hike around $40 unless they get bad news on Parx Casino's tax appeal.

Gretzula said that feat could be accomplished by increasing class size, reducing extracurricular activities and/or shifting designated reserve accounts.

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“This is an early prognosis,” Gretzula said of the $1.2 million figure provided by Myers. “We're still digesting the proposed state budget.”

Myers said the worst news for the district in the budget unveiled by Gov. Tom Corbett is the elimination of partial reimbursement for charter school tuition. That would mean a loss of $1.1 million to the district, he said.

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The district also was surprised to hear it would lose about $500,000 in the state's contribution for employee Social Security.

“It was always 50 percent. Now it will be less” dependent on the financial status of districts, said Myers.

One piece of relative good news, according to Gretzula and Myers, is that the state's basic education funding will be rolled back to 2008-2009 levels rather than 2007-2008. That means the district would get $340,300 more than anticipated, Myers said.

District officials in January unveiled a 2011-2012 preliminary budget of $120.1 million that would result in a tax hike of about $40 for township residents assessed at the median average of $22,000.

That average tax hike had been expected in June to stand at about $120.

Myers previously said the main reason for the significant improvement is a new tax assessment of Parx Casino. But that assessment has been appealed.

Gretzula said he expects a decision on that appeal by Tuesday but that ruling can be appealed as well.

In addition to the state aid cut, the district has to deal with a loss of $2.3 million in federal stimulus funds, according to Gretzula and Myers.

Also, Myers previously said the district is faced with $5.8 million in increased expenditures. That includes $1.9 million in Intermediate Unit and special education costs, $1.6 million for the Public School Employees Retirement System, and $1 million in medical insurance and federal payroll costs.

Gretzula earlier said he is recommending the continuation of full-day kindergarten but acknowledged the program could be in jeopardy. On Wednesday, he said, “We are trying desperately not to cut programs and services.”

He said superintendents from across Bucks County will discuss the proposed state budget Friday.

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