This post was contributed by a community member. The views expressed here are the author's own.

Schools

Update: School Board OKs Proposed Budget with $43 Average Tax Hike

Kramer concerned with use of fund balance

The on Wednesday approved a “proposed final budget” for 2011-2012 that would raise taxes an average $43.

The board is scheduled to adopt a final budget in June.

Business manager Jack Myers said at Wednesday's board meeting that district officials trimmed about $800,000 from the spending plan since it was unveiled in January, leaving the total at $118.3 million. That is about $4 million more than the current budget.

Find out what's happening in Bensalemwith free, real-time updates from Patch.

He announced that the spending plan eliminates five positions including one in administration and two teaching jobs, some through attrition. He said after the meeting that it is too soon to determine if anyone will actually lose their employment.

On the flip side, Myers said the budget includes three new teaching positions and a contingency fund that could pay for seven more teachers if enrollment deems that hiring necessary.

Find out what's happening in Bensalemwith free, real-time updates from Patch.

Myers said the district is facing a $6.7 million increase in expenditures, largely out of its control, along with a $4.5 million reduction in revenues. He previously put the expenditure increase at $5.3 million, which took into account money the district is saving in salaries as a result ofg many retirements.

The higher expenditures include $1.6 million for the Public School Employees Retirement System. The lower revenues include about $3 million less in state aid and about $2 million in lost federal stimulus money.

The budget includes $4 million in tax revenue from Parx Casino, which was recently reassessed.

In total, the proposed budget reflects revenues of $115.7 million, with the difference between expenses and revenues addressed by a draw down of $2.6 million from the district's fund balance. Myers said the fund balance now stands at $5.8 million, which includes a transfer of about $2 million from a designated reserve fund.

Board member Harry Kramer said he is concerned with the diminishing fund balance. That prompted Myers to point to the designated reserve fund which holds money for such expenditures as debt on high school improvements, retirement benefits and a “huge accumulation” of unpaid leaves of absences.

The budget would increase the school tax rate by 1.4 percent or 1.95 mills to 141.4 mills. That translates to a $42.96 increase in the tax bill of a homeowner assessed at the township median of $22,000.

Superintendent Bill Gretzula said that over the last three years, the Bensalem district has had the lowest tax hikes in Bucks County. And he lauded the district for its performance amid slashed state funding.

“Despite the wrecking ball against the wall of education … our kids continue to excel and that puts us in very rarefied air,” he said.

The proposed budget was approved on an 8-0 vote, with board member Sherri Underland absent.

The board is scheduled to adopt a final 2011-2012 budget June 8 after a public hearing at Valley Elementary School. Before that, it will hold a question-and-answer meeting May 25 at the administration building.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?