Tax Increase Approved by Perk Valley School Board

The Perkiomen Valley School Board approved Monday a preliminary budget that increases taxes by 1.92 percent, due in part to a wage and benefit freeze from school administration, and the elimination of open positions.

During the April budget presentation, school district business administrator Jim Weaver reported a proposed tax increase of 2.9 percent, down from over 11 percent proposed at the beginning of the budget process.

Between April and May, spending was reduced by another $835,000 by saving $73,000 with an administrator wage freeze, removing five teacher retirements at $605,000, and two previously approved new teaching positions at just under $80,000 each, bringing the proposed budget shortfall to $2,155,470.

By using $1 million from the General Fund Balance, and adding the proposed revenue from a tax increase, the budget is balanced.

The 1.92 percent tax increase is under the 2 percent increased allowed by the Act 1 Index without referendum. The increase of .56 mills to 29.80 mills means that a home worth $180,000 will see a $101 per year increase in school district taxes.

Business administrator Jim Weaver said in January that the proposed budget increased just over $6.5 million from the 2012-2013 school yar, and more than one third of that came from a mandatory increase from the school district to the Pennsylvania State Employee Retirement System.

By the May presentation, Weaver said that the increase over last year was $3,258,929.

For Weaver’s entire budget presentation, click here.

Editor's Note: The story originally reported that there will still be a just over $35,000 shortfall in the budget.  The figure, $37,230, is what the district would have in additional revenue if the board decided to raise taxes to the Act 1 index of 2 percent, instead of 1.92. Additionally, the budget increase over last year was $3,258,929. It was proposed to be $6.5 million in January.