School Board OKs Preliminary Budget

On Wednesday, Jan. 25, the considered a preliminary 2012-2013 budget of $124 million that would mean a tax hike of $89 or 2.87 percent for the average township home.

Prior to the vote, resident Joe O’Donnell made a plea to the board to reject the proposed increase.

“I would like to see this board tell the people of Bensalem that you’re not going to vote for that $89 raise,” he said. “Because seniors and other people just can’t afford it.”

He pointed to the recent reduction of the township’s homeowner rebate program and increases for certain employees at the county level that would already be a negative impact on residents’ pocketbooks.

Despite O’Donnell’s plea, the board unanimously approved the preliminary spending plan.

Why are Bensalem school tax bills increasing?

District Business Administrator Jack Myers said without a tax increase the budget’s revenue would be $117.79 million with expenditures of $123.62 million, leaving a gap of $5.42 million. The district plans to use nearly $3 million of its fund balances to offset a larger tax increase.

He pointed to increases in the state pension system, insurance costs, charter school expenses and full day kindergarten totaling more than $2.5 million as well as other increases of $1.8 million.

He also noted a loss in reassessments including one for that totaled about $425,000.

Myers said this budget’s numbers aren’t final because state funding will not be set until Gov. Tom Corbett introduces his proposed budget next month.

Myers noted that state subsidies for things other than the retirement system have dipped dramatically in recent years from $3,650 per student in 2008-2009 to $3,002 per student in 2012-2013, a decrease of nearly 18 percent.

“The state is pushing back to the school districts more and more of the burden to pass onto the local taxpayers,” he said.

On a positive note, this tax hike appears to be the worst case scenario for this budget.

"Would it be fair to say that the tax increase in this preliminary budget is not an actual tax increase, but a ceiling?" School board member Kevin McKay asked Myers.

"Yes, $89 is the top," Myers agreed.

But using this budget as a base Myers plans to show the board in coming weeks what the next four years will look like "and that's when it gets scary."

Upcoming budget hearings include a work session on Feb. 22; adoption of a proposed final budget on May 9; a public Q&A session on May 23; and final budget adoption on June 13.