Directors OK early budget
Journal Register News
Service The Centennial School Board approved the preliminary budget for 2013-2014 school year in the amount of $102,036,170 at the last board meeting Feb. 12.
According to board member Michael Hartline, since the board reviewed the budget two weeks ago the finance committee was able to eliminate another $1 million from the district expenditures. As the board approved the preliminary budget the expenditure amounts can now decline, but cannot increase during the rest of the budgetary process.
In the current preliminary budget the district faces a $2,256,216 GHfiFLW. ,I WKH EuGJHW is left as-is, a homeowner with a property assessed at the district average of $26,400 would see a 3.67 percent increase in real estate taxes, which would equate to a $112 increase.
During the meeting the board also approved a resolution that urges state authorities to “consider the creation of a hybrid pension system consisting of GHfinHG EHnHfiW DnG GHfinHG contribution for school employees as a potential solution, without transferring the burden to future generations.”
The request for a pension system reform as Centennial, among other Pennsylvania districts, is struggling to follow the requirements within the current pension system.
“It’s something that needs to be done,” said board President Andrew Pollock, calling on other school districts to follow the example and send similar letters to members of the state Congress to address the pension reform issues.
State mandated pension contributions play a major role in the increasing expenses, Hartline said.
The state increased the contribution requirement to the public school retiring employees by 16.84 percent for next year, which equates to $2.5 million for Centennial an amount that alone exceed the allowed Act 1 index, Hartline said.
Without a pension reform, in four years the district’s contribution to the pension plan will increase by 30 percent, which essentially will mean having two payrolls in the district – one for employed teachers and one for the pension contribution, Hartline said.
7KH finDO DSSrRvDO RI WKH EuGget is scheduled for June.