Springfield School Board OKs budget plan with 2.5 percent tax hike

by the comparable real estate tax increase of 2.5 percent to a total of 32.207 mills. This is less than a 1 mill increase from the current year. The property with the median value of $146,820 will have taxes of $4,729, an increase of $126.

As has been the case for nearly the last decade, mandatory pension costs are the main drivers, with a hike of 10.4 percent. Executive Director Don Mooney, in his presentation, said PSERS (Public School Employee Retirement System) increases are expected to continue through to the 2020-21 school year. Compensation and benefits costs excluding PSERS are anticipated to increase by $1.4 million. Personnel costs overall are 53 percent of the budget.

Also on the expenditure side, non-discretionary special education costs rose about $1 million to just under $11.8 million, and are 14 about an $1 million increase. State subsidies for these expenses have been level at about $1.5-$1.6 million for at least five years.

The fund balance total, including committed and unassigned use, is about $9 million and 11 percent of the total. The district has been strategic in using a portion of the committed fund balance to “smooth” PSERs increases.

Due to modestly rising enrollment, one staff and one administrative position will be added for next year.

Revenue is overwhelmingly supported by real estate taxes estimated at about $56 million. Mooney said the township’s total assessment increased somewhat with the sale of Springfield Hospital to a for-profit owner, resulting in the transfer from a nontaxable to taxable property.

Non-real estate tax revenue is from a variety of sources including the basic instructional and special education subsidies from the state. Mooney said those numbers are “unknown” in terms of any changes, and budget development uses this year’s figures totaling about $4.6 million. The state also pays matching retirement contributions of close to $5 million.

The board’s approval was unanimous at 8-0 with one director absent. The board will vote on the final budget at the June 22 meeting, and meet the requirement of filing it with the Pennsylvania Department of Education by July 15. There was no public comment on the budget.

School Director Doug Carney thanked Mooney for the clear presentation. Carney also noted the challenge of having a district that is 72 percent locally funded, staying within the means of the community and providing an excellent education for all its students.