A tax increase may be in store for Pennsbury School District residents.
District officials are working to fill a $5.45 million deficit in the $182 million proposed budget. Dan Rodgers, the district business administrator, cautioned at last week’s school board meeting that the budget is preliminary and in its first draft.
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The Pennsbury School Board voted 8-1 to keep any tax increase below the 2.1 percent Act 1 index. The district could have applied to the state for a waiver that would allow the school board to raise real estate taxes more than the allowed 2.1 percent.
Rodgers said the district is going to look at areas to save money as the budget process continues.
The early draft of the 2014-2015 budget features a list of some of the larger expenses: 52 percent to staff salaries, 21 percent to benefits, 15 percent to services, 5.6 percent materials and the rest goes toward debt service and other costs.
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About 76 percent of the district’s funding is local with 21 percent from the state and about 1 percent from the federal government. Federal funding numbers are still fluctuating, district officials said.
The business administrator said the Public School Employees’ Retirement System (PSERS) required state contribution will cost the district $4.1 million more than last year. The is double but the state pays for 50 percent of the cost. Officials have districts across the state have raised concerns as state-mandated PSERS contributions will increase over the coming years.
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Before the board vote, Rodgers said Pennsbury, if it wanted to, could apply for the Act 1 exemptions for special education and rising PSERS contributions.
The budget process will continue in the coming months and conclude with the district approving a final budget in June.
The current millage rate is 150.3 mills.
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Click here to read the district’s PowerPoint about the budget
