PVSD Board Approves Budget with 1.78 Percent Tax Increase

The Perkiomen Valley School Board voted on June 10 to approve its 2013-2014 annual budget with a 1.78 percent tax increase for homeowners in the school district.

According to the school district, this will mean a $94 annual increase in taxes for a homeowner with a $180,000 house, and is under the state-mandated index of 2 percent.

The budget process began in December with a $6 million shortfall between expenditures and revenue; over the past six months, the deficit was whittled down to just over $2 million.

By using $1 million from the district’s general fund balance, the shortfall became $1,067,324; the approved tax increate will generate just over $2 million, according to the school district.

The largest increase in expenditure came from a required 37 percent increase to the Pennsylvania State Employee Retirement System, which equated to roughly $2.5 million in additional spending.

Overall, the 2013-2014 budget sees an increase of 3.58 percent, or approximately $3.23 million.

In other areas, spending was reduced by not replacing retiring employees, saving roughly $603,000, removing two proposed new positions at a savings of $158, 442, refunding two bonds for a savings of $1.3 million, and a wage freeze for administrators, knocking almost $73,000 of the expenditure list.

According to the school district, real estate revenues and earned income tax have increased; a proposed increase of $1.4 million is expected to replenish the $1 million taken from the general fund balance, if the trend continues.

The state's contribution to the budget is currently unclear, as the Pennsylvania Legislature has not passed its budget; there could be a 1.15-percent increase in subsidies and an increase in retirement costs if Governor Tom Corbett’s proposal regarding retirement costs is accepted; but that is unknown.