Schools

USC School Directors Pass Preliminary Budget With Tax Increase

Monday night's action will 'provide the boar with maximum flexibility' come June 2012.

The Board passed a preliminary budget Monday night that could allow the school directors to raise taxes by 1.57 mills in June 2012.

A 1.57 mills tax increase would be equal to $314 per $200,000 of assessed value.

In addition, the budget would eliminate 16 staff positions, including 10 fulltime teachers and six supporting staff.

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The vote was made so early in the year to allow for the district to apply with the Department of Education to raise taxes above the pre-set state limit, which is .337 mills next year, equivalent to $67 per $200,000 of assessed value.

District administrators recommended the board adopt the preliminary budget to allow for "maximum financial flexibility" when it comes time to adopt a final budget in June 2012.

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"Nothing in this proposed preliminary budget commits the board to the budget. Everything can change," said Frosina Cordisco, the district's business manager.

"It was hard to put this budget together this early when so many variables are unknown," Superintendent Patrick O'Toole said.

Some of the unknowns are how much health care costs will increase, the new assessed property values from Allegheny County and how many staff members will retire next year.

What is known, and what is a big part of the reason it will be so difficult to balance a budget in June, is the PSERS rate, which is the pension system for school retirees. The rate the district must pay to the state is increasing to 12.63 percent of the payroll in 2012-13. This year the rate is 8.65 percent.

"So the state is telling us that our PSERS contribution rate is going to increase by 3.7 percent, but only permit us to increase millage by 1.3 percent to cover that increase," said Harry Kunselman, school director. "So the state is forcing down our throats a deficit?"

The vote to adopt the preliminary budget was 7-1. Bruce Kerman was absent from the meeting and did not vote. Louis Oliverio, the board’s new member, voted no.

“I’ve only been here a week. There are a lot of questions I have and I want to thoroughly review the situation and know where the community is on the issues before I vote yes,” Oliverio said.

“I find this process rather frustrating,” said Rebecca Stern, school board president. “I recommend taking action that gives us the most options; therefore I’m in favor of making the preliminary budget available to the public.”

“We’re definitely not a group that would like to see our professional staff reduced,” said Louis Mafrice. “We will be sensitive to all expenses. I’d like to comfort the community with knowing we’re going to work hard to make for the lowest taxation possible.”

The preliminary budget will be available for the public to view online in January.

Cell Phone Contract
The board took the administrators’ recommendation and voted to change their cell phone contract from AT&T to Verizon next year.

Holiday Resolution
The board passed a resolution wishing everyone an enjoyable holiday season and a healthy and happy new year.

Share your thoughts on the board's decision to pass a preliminary budget. Tell us in the comments.


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