PVSD Whittling Down Deficit to 2.9 Percent Tax Increase

With minimal spending cuts, the updated Perkiomen Valley School District budget sees a 2.9 percent tax increase, down from a nearly-nine percent increase projected in earlier budgets.

The deficit shrunk in large part thanks to increased revenue since the February budget presentation, including $200,000 in additional earned income tax, as well as $90,000 in real estate assessments, according to a presentation by Perkiomen Valley School District Business Administrator Jim Weaver at the board's April 8 meeting.

Another potential aid in minimizing the deficit is Governor Tom Corbett’s proposed “tailored collar” placed on the Pennsylvania State Employee Retirement System rates, which would cap the per-year increase for districts to 2.5 percent, reducing the 2013-2014 expenditures by roughly $500,000.

Two expenditure decreases include a reduced healthcare cost from BuxMont, saving $111,706, reducing staff by two teachers and one custodian who are retiring, saving almost $300,000.

Weaver recommended the use of $1 million of unreserved fund balance to offset the deficit in the 2013-2014 budget.

The net shortfall, according to Weaver, is $1,746,788, and the Act 1 Index of two percent will allow a revenue increase of just under $1.2 million, leaving a shortfall of $554,088.

The presentation noted that the district has potential exceptions to consider that will allow the taxes to be raised above 2 percent with no referendum; a special education exception of over $175,000 and a retirement exception of $895,780.

This would allow an additional 1.02 mills at this count, allowing an increase of 5.4 percent without referendum.