Rose Tree Media’s new budget raises taxes almost 3 percent

MIDDLETOWN >> Since more than 100 Rose Tree Media residents attended the March school board meeting to hear the input garnered from the budget process taxpayer forums, the school board figured they would be equally interested in the voting process.

Not so much.

Without entertaining a single resident comment, the directors moved 8-1 to approve the 2017-2108 proposed final budget of $96.1 million and corresponding 2.98-percent tax hike. The increase would set the new rate at 25.1 mills.

Based on the average assessment of $208,300 for homes within the district, the typical tax bill would be $5,227, or an additional $173. The homestead exclusion for those who qualify would provide an anticipated $219 property tax reduction.

The proposed increase represents the district’s Act 1 index of 2.5 percent, as set by the state, and an additional .4 PSERS (retirement) referendum exception. The board has not made a request for an exception since the 2008-2009 budget, when taxes were raised 4.8 percent.

“Our rate is still among the lowest in the county,” said Finance Committee Chairman Bill O’Donnell. “The only districts with lower rates are Radnor and Marple Newtown.”

Balancing the budget would also require using $5.4 million from the fund balance, leaving a balance of $3.1 million. The district used $1.7 million for last year’s budget.

The proposed budget makes no changes to current programs, noted O’Donnell. It adds two teaching positions expected at the elementary level while eliminating a custodian, technical assistant and business office administrator, the latter three through attrition. The proposed budget would also maintain technical devices for students in grades six12.

“It has the same programs as the current year,” he added. “It is basically the 2016-2017 budget with a cost of living adjustment.”

The school board initially anticipated a $98.1 million budget with a $9.5 million gap if the current program and teaching staff were to be maintained without a tax hike. As a result, the district hired the Penn Project for Civic Engagement, which conducted a series of four meetings attended by more than 500 homeowners aimed at sharing ideas to help set priorities in developing the 2017-2018 budget. Specific themes immerged, including minimizing cuts that directly affect students, maintaining class size, electives and clubs as keys to the district’s identity and a willingness to provide financial support. The participants also stressed the need for increased transparency to build trust and long-term fiscal planning and projections.

“There is a large portion of the budget which cannot be changed due to contractual negotiations,” said O’Donnell. “The input provides ideas which we will consider over the next month and 13 months.”

Like last year, school director Jim Cunningham cast the lone nay vote.

“I cannot support it, because it does not reflect the problems of our taxpayers,” he said. “We need a better balance between spending and revenue.”

The vote to adopt the final budget is slated for May 18.