Daily Local News (West Chester, PA)
Board boosts taxes by 2.7%
Spending goes up, fueled by unfunded mandates
Spending and taxes are both going up in the West Chester Area School District, according to the final budget approved by the school board Wednesday night.
Costs for the 2017-18 school year will increase 2.7 percent. And taxes will go up 2.7 percent to pay for it.
The board passed a $243.8 million final budget, with a 2.7 percent tax raise for Chester County property owners, at Wednesday’s meeting.
Expenses will climb by $6.4 million. The majority of those costs are due to $4 million of unfunded state and federal mandates, according to Superintendent Dr. James Scanlon.
During the past month, the district whittled expenses by $800,000. Scanlon attributed the savings to the district’s recent decision to not fill 12 positions through attrition, with a savings of $1.1 million.
“We did not fill several positions due to retirement, which provided substantial and sustainable savings,” Scanlon said.
The average Chester County homeowner with property assessed at $184,410 will realize a yearly 2.9 percent property tax increase, or a $107 boost in their bill.
Delaware County property owners with property assessed at an average of $285,700 will pay $142 more, for a 3.4 percent increase.
The millage rate for Chester County home owners will increase by .59 mils to 20.684165 mils. The rate will rise .5 mils, to 15.2086 mils, for Delaware County district residents.
Due in part to strong home and commercial business values, WCASD has the lowest property
tax rate of any school district in Chester County.
A mil is the equivalent of one tenth of 1 percent and for tax purposes is a levy on assessed property values.
The board voted 7-1 to pass the final budget. Christopher Tabakin was opposed and Robin Kaliner was absent.
Scanlon said the budget includes $2.6 million in state-mandated pension expenses, a 9.6 percent increase. He also said that non-mandated special education,
alternative education and transportation costs jumped 10.4 percent, or $1.3 million.
“We did some reorganization with priorities,” Scanlon said. “We worked very hard to control what we can control.”
The district dipped into its fund balance for $5.6 million, leaving $15.2 million for a rainy day.
“We have worked very hard to not only control expenses for which we control, but find ways to cut expenses so we can pay for non-funded mandates without using exceptions to Act 1 Tax increases,” Scanlon said.
The state’s Base Act 1 requires
districts to limit tax increases to 2.5 percent, any increase above and beyond that has to go before voters in a referendum.
The district was eligible to exceed that amount with two exceptions, $4.6 million to pay for special education mandated costs and $800,000 for pension mandates. The board would have been able to raise taxes by 5.8 percent, without a referendum.
The largest district expenditure is salary and benefits. A 1.3 percent increase, or $1.6 million, is projected to cover the cost of 1,400 employees and a new full-day kindergarten program.
Board member Ricky Swalm favored the new district policy. He supports the added personnel costs to teach kindergarten students for a full day instead of more traditional half-day classes.
“It’s an investment, not an expense, Swalm said. “It will pay huge dividends.”
Board President Chris McCune talked about the year-long budget process.
“Full-day kindergarten is the only significant investment we’ve made in four years,” he said. “It’s worth it.”
Although he said the board had made “great progress” and that the “savings found were greatly appreciated,” Tabakin was opposed to exceeding the Act 1 index.
“I’m really committed to the Act 1 Index,” he said. “The increases we are unable to control are the priorities.”
Board member Gary Bevilacqua said that while he’d like to maintain the Act 1 Tax limit, mandates sparked the increase.
He said that by not dipping further into the district’s savings, the board was being “prudent for the following years.”
Board member Sue Tiernan talked about fighting to limit unfunded mandates at the state and federal levels. The district has formed a legislative action committee.
“We get involved and we get informed,” she said.
She also discussed the multi-year budget planning process and regular budget considerations.
“We consider it at every meeting,” Tiernan said. “How much will that cost and what will be the long term implications?”
Board member Kate Shaw talked about the students.
“We continue to focus on the quality education our students are getting,” Shaw said. “These kids are getting an incredible education.”
Board member Karen Herrmann said that no budgeted funds are wasted.
“It was a difficult year, very challenging, money has been a big issue,” Herrmann said.
As an educator, Board member Joyce Chester said she understands the pain associated with unfunded mandates.
“It has been a journey to try to get to where we are,” she said.
Scanlon also noted that healthcare cost adjustments to prescription and medical plans, a new higher health care deductible benefits option and steeper co-pays for employees saved $1.5 million.