The Clock is Ticking Down for T/E School Budget . . . Will Property Tax Increase be the Highest of our Neighbors
The clock is ticking down . . . the T/E School Board votes on the final budget for 2011-12 on Monday, June 13, 7:30 PM at Conestoga High School. The preliminary school budget contained a property tax increase of 3.8%. Will that tax increase remain in the final budget or is possible that the school board members may consider a lower increase?
The school board and the administration have battled their way through the 2011-12 budget since last fall, with regular school board meetings as well as finance and special budget meetings. The board and administration thoroughly reviewed many budget strategies and made difficult educational and programming decisions. The school district reached agreements for the 2011-12 school year with the teachers union (TEEA) and with the non-instructional union (TENIG). In the spirit of shared sacrifice, union members from TEEA and TENIG showed their support for the school district and agreed to a variation of a salary freeze to help the bottom line of the District’s 2011-12 budget.
According to the TEEA agreement with the T/E school district, the teachers will have their salaries frozen for the first 6 months of the 2011-12 school year based on their final paycheck of the 2010-11 school year. As part of the agreement, TESD agreed there would be no involuntary furloughing or involuntary demotion of teachers for 2011-12. The cost savings for the TEEA agreement is approximately $1 Million to the school district.
The agreement reached between TENIG and TESD is a zero percent wage increase for the 2011-12 school year. The savings to the school district with TENIG’s salary freeze is $300K. Adding the additional reduced overtime wages and the total TENIG savings to the District is approximately $450K.
The school board members applauded the efforts of TEEA and TENIG . . . the combined total help from the two unions represents nearly $1.5 million in savings to the school district.
Here’s my question . . . given the substantial level of savings, due to TEEA and TENIG’s spirit of shared sacrifice, will the school board also recognize the ongoing sacrifices of the taxpayers in this school district? Will the school board consider a reduction in the proposed 3.8% property tax increase? The preliminary 2011-12 budget could not predict the $1.5 million savings from the unions, so should the taxpayers expect the final budget to reflect those savings? I believe that the 3.8% includes taking the full Act 1 exemptions but maybe in light of the union savings, the percentage increase could be reduced.
In anticipation of TESD’s final budget vote on Monday, I thought it would be interesting to see where the currently projected 3.8% property tax increase measures up against other local school districts. I think that it is fair to use Radnor, Lower Merion and Great Valley school districts for comparison. Generally speaking, these school districts are comparable in level of education quality and I would think that the economic climate of the taxpayers is similar. Each of these school districts has approved their final budgets –
- Radnor Township School District – 1.4% tax increase Lowest RDSD tax increase in years. RTSD credited the Radnor teachers’ sacrifice in reaching a contract agreement for the low tax increase.
- Great Valley School District – 2.9% tax increase GVSD Superintendent Alan Lonoconus, said of the tax increase, “We tried very hard this year to make sure the impact to programs was as gentle as possible. But we also kept in mind the economic conditions not only of our district, but of the nation.”
- Lower Merion School District – 3.3% tax increase Lowest tax increase since 1984-84 fiscal year
Although not an adjacent school district and perhaps not as highly ranked academically as Radnor, Great Valley, Lower Merion and T/E school districts, I was fascinated by West Chester School District’s final budget decision –
- West Chester School District – NO tax increase. The 0 percent tax increase balanced WCSD budget by taking $3 million from their fund balance.
It is not surprising that the taxpayers of WCSD overwhelming supported the decision of their school board leaders not to increase taxes. In reviewing the demands of their school budget over the last months, there was much discussion between school board members and residents in regard to the severe economic conditions facing the residents, rising gas prices, high unemployment, etc. Many taxpayers in the WCSD complained that they are already financially pushed to the limit — the 0 percent tax increase decision came as welcomed news.
As it now stands, unless the T/E school board members reconsider, a property tax increase of 3.8% is on the table for a vote at Monday night’s school board meeting; this increase will represent the highest increase among our neighbors. TESD is a great school district, and one for which we all can be proud, but likewise could be said for Lower Merion, Great Valley and Radnor school districts. My guess is that the argument that some will make is that TESD currently has a lower tax rate than these other mentioned school districts and therefore taxpayers are in a better position to afford the tax increase. Correct?
I have not done a research analysis but I believe that TESD may have the highest fund balance of any of these neighboring school districts. (In fact, I think I read somewhere that TESD fund balance is one of the highest in the state). Some could argue that the fund balance represents over-taxing of residents in prior years, so . . . now that the taxpayers of this community need financial relief can we ask that the TESD use more of the reserve and lessen our property tax increase?
To help the community, the teachers, secretaries, custodians, cooks and maintenance personnel in this school district have shown us the meaning of shared sacrifice. Is it possible that TESD will acknowledge the sacrifices of the District taxpayers, and lower the expected property tax increase? Or, is this just wishful thinking on my part . . . ?
Filed under: Great Valley School District, TEEA, TENIG, Tredyffrin Easttown School District, West Chester Area School District
Tags: Great Valley School District, Lower Merion School District, Pattye Benson, Radnor School District, TEEA, TENIG, TESD, Tredyffrin Easttown School District, West Chester School District