3% tax hike endorsed to close $4.5M deficit
ROYERSFORD >> The majority of the Spring-Ford School Board members said Monday night they would support a 3-percent tax hike to help close a projected $4.5 million budget deficit.
The remarks came at the end of the Finance Committee report offered by committee chairman Tom DiBello. Both he and fellow committee member Clinton Jackson said they hope that the “upand-down” that occurred during last year’s budget talks can be avoided this year.
DiBello said the current $180 million budget draft has a deficit of $4.5 million, which would require a 3.99% tax hike to balance.
Because the state-imposed cap, or “Act 1 index,” would not allow a tax hike above 3 percent this year without voter approval, the district must “shave $1 million” in expenses to balance the budget, he said.
“One million dollars has to be cut from the budge right now. One million dollars is a lot of money to reduce out of the budget and that’s just a starting point,” he said. “There’s no secret sauce here.”
“Personnel, projects or curriculum,” are the three places DiBello said cuts would most likely occur.
“The majority of the money will probably cut from projects, because I don’t see where we can cut staff positions,” DiBello said. “It’s going to come from somewhere. We’ll find it. Unfortunately, these times are stretching us a bit.”
The district has garnered some savings during a year of the pandemic, but has also weathered extra costs, like additional nursing personnel and specialized equipment for dealing with the COVID-19 coronavirus.
“Last year we went around and around on this. Everyone is seasoned by now, and there have to be cuts,” Jackson told the board. “Nobody likes it, but we go through expenditures every month. We knew this was coming.”
Board President Colleen Zasowski said she would like to see the tax increase brought below 3 percent. “This has been a hard year on some of our small businesses and many of our residents,” she said.
But she was the only board member to advocate for anything below 3 percent during a straw poll taken at her request.
“It’s been a hard year for all of us at the district,” said board member Margaret Wright in supporting the 3 percent tax hike.
Several residents asked the board to reconsider.
Tom Norwood pointed out that the district is set to receive money from the federal stimulus package and asked how that would figure into the district’s equations.
Jill Schadler said she would like to see more board members engaged with the budget. “There are some hard decisions that have to be made.”
And Tom McGonigle said if a 3 percent tax hike is adopted when the final budget is adopted in May or June, it would be the largest tax hike in years.
“I think going to that number blindly is a little irresponsible, especially when it affects every member of the community,” he said, adding “3% is not a laughable number.”
“Nobody likes it, but we go through expenditures every month. We knew this was coming.”
— Clinton Jackson, Spring-Ford School Board member