Larger property tax hike likely; board sets final vote next week

A 5.8 percent property tax hike awaits property owners in the Baldwin-Whitehall School District if the board votes next week to adopt the $66.14 million operating budget for the 2017-18 school year that was presented at the board’s meeting on Wednesday.

The increase of 1.12 mills would raise the millage rate to 20.37 mills, thereby generating an additional $1.95 million.

Homeowners with property assessed at $100,000 would pay an additional $112 in real estate taxes next year.

The 1.12-mill hike is the maximum property tax increase the district is allowed by the state with the granted exceptions of escalating mandated pension and special education costs.

An earlier version of the plan had a smaller tax hike.

“No one wants to raise taxes. We want to have a good school district so one’s property stays at a strong value,” board president Karen Brown said.

The major changes from 2016-17 to 2017-18 include: an increase of $584,000 in the district’s state-mandated pension costs; $850,000 in salaries and benefits for 10 new teaching staff; $952,000 in debt service; $1.2 million more in special education expenses; and salary increases of $540,000. The latter does not include the 240 members of the BaldwinWhitehall Service Employees Association because contract talks are ongoing.

Of the 10 new teaching staff, five are for kindergarten to grade 5. Superintendent Randal Lutz said the district gained 192 additional students in K-5 over the past two years.

With the tax increase, the deficit would be $24,251. With no tax hike, the deficit would be about $2 million.

The district has an unassigned fund balance of $3.8 million, which is less than the 8 percent recommended by the state.

A districtwide facilities study presented by HHSDR Architects/Engineers prior to the budget discussion stated that all of the district school buildings are in need of some capital improvements in the near future totaling about $39 million.

The proposed final budget adopted in May called for a 0.36 mill increase. Board member Martin Schmotzer accused the board at the meeting of playing politics by projecting a lower tax increase as the primary election was approaching.

But Mrs. Brown called the 0.36 hike a “place holder” to get to the 19.61 millage rate of three years ago prior to a 2mill tax decrease by a former board, and from which she frequently says the district has yet to financially recover.

Last year, taxes were raised by 0.83 mills.

The board is scheduled to adopt a final budget on Wednesday.