Tax increase looks to be unavoidable in Peters Township
It wasn’t a pretty financial picture painted Monday evening by Superintendent Jeannine French of Peters Township School District.
French unveiled the 2016-17 preliminary district budget and the very first thing she pointed out was the cost of employee wages which are projected to increase by $804,178, while benefits are expected to jump by $1.6 million, bringing the increase in mandated and contractual staff costs to more than $2.4 million.
Revenue, meanwhile, is projected to rise to $61.39 million, the bulk of which comes from local sources such as property taxes and earned income taxes. Revenue last year totaled $59.4 million.
“I don’t see any way we can get around not raising taxes,” said board member Jamison Hardy. The district has raised property taxes by more than 20 mills over the last 10 years.
An increase of 1.55 mills would be required to eliminate the $519,997 projected budget shortfall, district officials said.
Then there is the uncertainty from the recent teachers’ strike that lasted 21 days and is now heading to nonbinding arbitration. It is very possible the district could have another strike in the spring.
“We have 21 more teachers than we did 10 years ago,” Hardy said.
Compounding problems for the district is the fact the state has yet to pass its budget. Next year’s budget projection anticipates $14.43 million from the state, about $200,000 more than the district received last year.
Housing starts are stagnant, French said. This is significant because nearly 80 percent of the district’s funds are generated by property taxes. In addition, the district is projecting $35,000 in interest income for 2016, down $20,000 from the previous year.
The 2015-16 general fund balance has $3.5 million committed to debt service and $4.5 million for retirement expenses. Only $1.9 million remains in unrestricted funds, which covers less than half of the district’s monthly expenses of $4 million.
Then there are unexpected costs, French said. At the start of the school year, there were 42 students in charter schools. Following the 21-day strike, which ended Nov. 27, there are now 66 students in charter schools.
The district pays $9,814 per each regular education student and $18,008 for each special education student.