Schools

Marple Newtown School Officials Approve Proposed 2012-13 Prelim Budget

Marple Newtown School Board members unanimously approved the preliminary 2012-13 budget with a maximum tax increase of 2.67%.

NEWTOWN SQUARE–On Wednesday, Jan. 4, Marple Newtown School Board officials held a special meeting to vote on the proposed $69 million preliminary 2012-13 school budget with a 2.67 percent tax increase, which was approved unanimously 6-0 with school board members Nancy Galbraith, Sherry-Lee McAuliffe and Robert Sack absent from the meeting.

According to Business Administrator Joseph Driscoll, school officials must now vote on a proposed preliminary budget in order to release the budget for public viewing the next day, following the vote.

Due to 2012 being a presidential election year, the state primaries have been bumped up which requires that the school budget be approved and adopted about a month earlier than usual, explained Driscoll. "Even before we have any idea what the state is doing with their budget," he added.

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The tax increase that the board voted on Wednesday night of 2.67 percent is the maximum allowed that the district would be able to implement a tax increase for the 2012-13 budget. 

"You can't go higher, you can go lower," said Driscoll.

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In Pennsylvania, schools cannot go above a 1.7 percent tax increase, according to the Act 1 Index, unless the school district seeks exceptions or obtains voter approval through a referendum.

"Since the index is at 1.7 percent, we're slightly above the index. The retirement exception alone would get us 2.67 percent. We wouldn't even have to file for any exceptions. Even if the state cuts all your subsidy, unless they change this specific law in the spring, you can't go above 2.67 percent," explained Driscoll.

School Board President David McGinley–who previously stated at a November Budget & Finance Committee meeting that he would not vote for a tax increase higher than 3 percent this year–asked how much money it would entail to bring down the 2.67 percent to the Act 1 index of 1.7 percent.

According to Driscoll, approximately $525,000 would need to be cut in the budget to bring the tax increase down to the Act 1 index.

In addition, Driscoll said there are approximately $230,000 worth of new positions that were approved in October for the 2012-13 budget, last year's salary iincreases that were not given–about a 2 percent salary increase and a 0 percent increase for next year–and the major cost driver in the budget which is the retirement.

"Retirement alone is a $1 million increase in expenses," said Driscoll. "It's off-set by a half a million dollars in revenues from the state but the change shows the inflated number on expenses. But our healthcare pretty much remains flat again this year. We're very, very fortunate. But that net effect is about $800,000."

Also in the budget is about 1 percent of budgetary reserve money. In addition, Driscoll said, "There's a little bit of special ed money in there."

Optimistic about the preliminary 2012-13 budget, Driscoll said, "2.67 percent coming out of the gate has been one of the better years that we saw."

The school board will officially adopt its preliminary budget at their Jan. 24 meeting. According to Driscoll, the school district will then file for special exceptions in the beginning of February. By May 30, the school district will have to vote on a proposed final budget and no later than June 30 would they have to vote on the final budget.


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