DV publishes a budget number

But what it will be paying for is another issue

DAVID HULSE
Posted 5/23/18

WESTFALL, PA — By a 6-3 vote, the Delaware Valley School District Board of Education (DV) agreed to an $82 million budget that would not increase the district tax rate of 110.71 mills. That …

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DV publishes a budget number

But what it will be paying for is another issue

Posted

WESTFALL, PA — By a 6-3 vote, the Delaware Valley School District Board of Education (DV) agreed to an $82 million budget that would not increase the district tax rate of 110.71 mills.

That will be the published proposed budget for final approval in June; but while the board members agreed to avoid a tax increase for now, they were not agreed on what should be funded in the budget. The board will conduct a line-by-line review in June to sort out their differences.

Board president Jack O’Leary had asked the administration to prepare three budget options with tax impacts, including increases of 3.2%, 1.6% and a zero-increase option. Board members debated the options.

Favoring the first option, Brian Carso cited the improved economy, saying it made the increase appropriate, especially since legislative action to eliminate school property taxes in Harrisburg could eliminate or hamper the board’s ability to raise more money in future. “We don’t want ideological opposition to an increase as an excuse for bad planning… The future does not suggest a lot of ways to recover [new funds],” he said.

Rosemary Walsh said DV as a border district must consider the possibility of an influx of New York and New Jersey families if property taxes are eliminated. The first option, nevertheless, failed by a 6-3 vote.

A 1.6% increase was supported by a one-time $225,000 draw-down in the budget reserve, a $150,000 reduction in planned reserves next year, and spending reductions totaling $734,000. It was not discussed at length and failed by a 7-2 vote.

To fund a zero increase the administration said needed spending changes would include: the two budget reserve actions from option 2, the elimination of new hires including a school psychologist and several part-time teaching aides for savings of $253,000, and elimination of $890,000 toward the Other Post Employment Benefits (OPEB) fund.

O’Leary supported the OPEB reduction but wanted to keep the psychologist position. Pam Lutfy said “I don’t support eliminating any of these positions.” She also was concerned about OPEB cuts. “We’ve never reduced OPEB funding before.”

“If you approve this, it goes to the public,” superintendent Dr. John Bell said, adding that it would not change later “without an epiphany” among board members.

Board Vice-President Dawn Bukaj recalled that the tax increase grew from 2.05 to 2.33% at the June meeting last year.

Carso said a zero-increase budget is not neutral. Aside from their obligation to taxpayers, the board also has an obligation to the value of our student services. “Property values are in large measure related to the quality of the school district,” he said.

Looking back at his five years on board, O’Leary said that each year the reserves left over exceed the tax increases.

Business manager Bill Hessling said unexpended funds are not wasted funds and save the cost of borrowing. He said the district annually faces budgeting for costs that can only be estimated. “Nobody knows how many will sign up for cyber schools. There are several federal funding streams that are facing elimination. If that happens, you’re going to need the reserve.”

Following the vote, former long-time, board member Jack Fisher warned about cutting payments to OPEB. Fisher, who was often a sole voice calling for tax rate increases during an earlier six-year period of zero increases, compared the funding to concerns about increasing district costs of the Pennsylvania Public School Employees’ Retirement System (PSERS). “This is the same as PSERS. At some point in the future all this will come due. It will take a few years to get there, but we’re pushing closer and closer to the iceberg. Someone will pay.”

westfall, delaware valley school district

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