School District to Lose $900,000 Under Corbett's Budget

Peters Township School District will receive approximately $900,000 less next year under the state budget proposed by Gov. Tom Corbett.

School district business manager Dan Solomon presented the news to the board of education’s finance committee members Monday night as they begin the process of shaping a budget for the 2011-12 school year, which will be adopted in June.

With costs expected to rise in the next school year, board members will have to find a way of balancing the new budget while losing what translates into about three mills of taxes; a mill in Peters Township generates about $311,000.

“With this budget, the (governor) is attempting to force school districts to make cuts,” Solomon said. “It’s like a doctor telling a patient that (you’re) overweight. Lose 30 pounds.”

A tax increase is not an immediate option for the school board. Under Act 1, they agreed last November not to raise taxes for 2011-12 more than the Pennsylvania Department of Education’s 1.4 percent. In order to change the rate, they would have to comply with deadlines established for changing the rate, which have already passed for 2011-12.

If the board were to seek to raise the percentage in the next year (2012-13), they would have to request the adjustment this year, and if rejected, would need to request the issue be placed on a voter referendum. It also would require that the district have the 2012-13 budget ready by next January.

Although Corbett’s budget shows Peters Township receiving $4.9 million for its basic education subsidy, the district will lose normally used as a subsidy for ARRA Funds, the Accountability Block Grant, the Charter School Subsidy and Social Security funds, according to Solomon. In total, the school district’s support from the state will decrease from approximately $5.7 million to $4.8 million.

As dire as the financial support appears to be, Peters Township schools continue to be among the most cost-effective in the state in terms of education, according to Solomon.

According to Solomon’s figures, Peters Township ranks 488 out of 500 school districts in Pennsylvania in terms of the cost of educating each student. Peters Township also ranks 13 out of 14 school districts in Washington County in terms of millage. Only California has a lower millage rate than Peters Township.

“It shows that the work this board has done over the years with taxes has paid off, especially at this time,” Solomon said.

The school board still must deal with capital costs, which are not part of the budget. Included in those are new roofing at the high school, improvements to athletic fields at , a  and the long-range renovation of the high school. Those costs will have to be covered through bond issues, according to Solomon.

All of the information presented about the state subsidies for Peters Township are contingent on the state legislature's approval of Corbett’s budget. In previous years, state budgets have not been adopted until June or July, past the time when the Peters Township School District must adopt a budget.

Monday night’s meeting was the first of several the budget and finance committee has scheduled, prior to setting a budget for 2011-12. The next meeting will be April 11, followed by an additional meeting on May 9.

During that time, the administration will be meeting with departments and staff to determine costs for next year.

A tentative budget for 2011-12 is due to be adopted on May 16, and final adoption is set for June 27.