Neshaminy’s Proposed Preliminary Budget Has $9.2 Million Gap

Over the coming months, the Neshaminy School District will work to plug a projected $9.2 million budget gap for the 2017-2018 fiscal year.

A 2.5 percent tax increase and cost cutting measures are on the table as ways to fill the deficit, which was announced when the school board approved the proposed preliminary budget Tuesday evening.

District business administrator Barbara Markowitz told LevittownNow.com the proposed $184 million preliminary budget adopted Tuesday was a long way from the final budget that will be approved in late June.

Through the winter and spring, district department heads will meet with the business staff to reduce costs and fill the projected deficit. Markowitz said the process of going through the proposed preliminary budget is just beginning and it will be reviewed line by line.

The 2.5 percent tax hike amounts to a 3.8 mill increase, which would bring in about $3 million more in revenues. The current average property owner pays about $4,193 in school taxes

The school board said they planned to stay under the Act 1 limit, but could file exemptions that, if approved, would allow them to raise taxes higher than 3.8 mills.

The district has about a $14.2 million unassigned fund balance and could use that money to fill a budget hole. However, the district has  about $26 million more in reserve that will likely not be touched and is set aside for various financial obligations, Markowitz explained.

For the upcoming fiscal year, the district is mandated to contribute close to $27 million to the Public School Employees Retirement System (PSERS). An expected $12.8 million is expected to be reimbursed to the district by the state, Markowitz said.

At this time last year, the district was working to fill a $9.9 million budget gap.

The current operating budget is $178,999,077.