Kutztown School Board approved a proposed preliminary 2015-16 budget that will give them the option to use the tax index and the retirement exception option for their eventual final budget.
The proposed preliminary budget was passed by a vote of six to two.
Business Administrator/Board Treasurer David Miller presented the board with four options to consider for the 2015-16 budget. Although the four choices were not the only avenues in which the board could explore, Miller suggested that each provided a solid foundation to start the discussion.
It is important to note that under the Taxpayer Relief Act, school district property tax increases are held to an index that takes into consideration the rate of inflation.
The options included a no tax increase option, holding the taxes to the index, using the index and retirement exception, and using the index and retirement and special education exceptions.
The no increase option would require the highest use of the district’s fund balance to compensate for a zero percent tax increase. From that starting point, the use of the fund balance decreased as the tax percentage increased when more exceptions were added. Ultimately, the board’s decision for the proposed preliminary budget, which is still in a very early phase of development, was to use around $297,138 from the fund balance with a 3.27 percent tax increase.
The decision was preluded by a lengthy discussion amongst the board members, several of whom provided varying takes on the budget. Board member Al Darion first suggested that the board consider the index, retirement and special education exception option to provide themselves with flexibility as the budget discussion progresses from this point forward.
“We have a very good record of not going for the maximum [tax amount],” Darion said. “I just like to have flexibility.”
Other members such as James Shrawder and Karl Nolte, however, were concerned about increasing the tax rate above the index due to the district’s shrinking student population.
“At some point, we have to face the reality,” Shrawder said. “There are less than 10 students per teacher. I don’t think it’s fair to the taxpayers.”
Shrawder pointed out that the decreasing ratio of students per teacher meant that the board had to acknowledge that it is unfair to the district’s taxpayers to maintain a similar level of expenditures on staffing costs instead of decreasing their spending amount to match the level of enrolled students.
Board member Eric Johnson had another take, stating that the board should not solely focus on the students to teacher ratio because they could potentially cut costs in other areas. The specific category that he mentioned was the costs associated with paying for students to attend outside districts.
“The size of our staff is not where the problem lies,” Johnson said. “This is money that’s being sent out of the community…I don’t think it’s fair for taxpayers’ money to be sent [outside of the district].”
Lastly, Vice-President Randy Burch suggested the board reach out to officials with Maxatawny Township and the Borough of Kutztown to discuss the stalemate that has resulted over the contested Advantage Point apartments and the failed Saucony Creek Regional Authority joint sewage treatment agreement.
“There are decisions being made within our community that have a very profound impact on us,” Burch explained.
Burch stated his belief that if the two sides could come to an agreement, it would result in a major increase in revenue for the community, which would benefit the district as well.
Ultimately, the board came to a general consensus that their primary goal was to work towards a no tax increase.
The board will vote on adopting the proposed preliminary budget at the Budget and Finance committee’s scheduled meeting on Feb. 9 at 7 p.m. in the High School Library. If there is inclement weather, the board will make a decision at their regularly scheduled board meeting on Feb. 16. A final decision is needed by Feb. 18 at the latest.
In other news, the board unanimously approved a motion to move the 2015-16 school year start date to Aug. 24. In 2014-15, the start date was Aug. 31. The board’s decision came after they consulted AEM Architects, who will be working on the renovations at the high school. AEM suggested that the earlier the district can start the 2015-16 school year, the better because it will give them more time to work on the renovations over the summer of 2016.
The board’s next meeting will take place on Feb. 2 at 7:30 p.m. at Kutztown Elementary School.
