Budget would hike taxes by 3% for 2022-23
Final adoption of $137M spending plan scheduled for June 28
With a 6-3 vote, the Boyertown Area School Board Tuesday approved a proposed $137 million budget that would raise taxes by 3 percent for Berks County residents of the district and 3.7% for those who live in the Montgomery County part of the district.
Even with the tax hike — which carries a tax rate of 29.917 mills — the proposed final budget requires the use of more than $2.8 million from the reserves to balance.
The state “index,” or tax cap for the district would have allowed taxes to be raised as high as 4.2 percent without triggering a referendum. Ironically, Business Manager Patricia Denicola explained, history has shown that when the school board raises taxes by too much, collections actually go down, resulting in less revenue.
However, the most recent round of collections has gone well. Denicola told the board Boyertown’s most recent tax collection rate was “stronger than I’ve seen in any other community.”
During a presentation in April, the board was also told that enrollment in charter schools is having an impact on the budget. If enrollment dropped to “the pre-pandemic level,” the district would save about $2.5 million per year.
Voting no on the budget were Lisa Hogan, Christine Neiman and the newest board member, Marianne Scott.
But the approval did not come without some speed bumps.
The first vote the board took tied 4-4 with member Anthony Panarello abstaining, saying he needed more information, and board member Roger Updegrove also voting no.
However, after more than 40 minutes
“I’m not sure what we can cut. I don’t want to cut any program, but there’s got to be ways of us conserving.”
— Board member Christine Neiman
of discussion, he said he would change his vote. Panarello also voted yes on the second attempt.
Both Neiman and Scott said they wanted to lower the tax hike, particularly given the economic impacts inflation is having on district families.
As is often the case, school board President James Brophy pressed those who voted no for specifics or at least a target to guide the administration’s efforts to revise the budget plan.
“I’m not sure what we can cut,” said Neiman. “I don’t want to cut any program, but there’s got to be ways of us conserving.”
But the administration can’t revise the budget “based on ‘I don’t know,’” said Brophy.
Neiman said she would like to see a tax hike for the coming fiscal year to be between 1 percent and 2 percent, but that would mean finding $3 million in cuts, said Denicola.
Hogan said she voted no because she is worried the budget does not raise enough money for the district’s needs. “the real problem is in Harrisburg,” said Hogan in an apparent reference to one of the nation’s most unbalanced school funding systems.
“It’s ridiculous that Harrisburg requires us to have a budget, but we don’t have any numbers on state funding,” said Scott.
The adoption of the final budget is scheduled for June 28.