Salisbury School Board Mulls Additional Tax Hike

After learning the governor proposed cutting $400,000 from  Salisbury Township School District's budget, Business Administrator Christine Stafford told the school board Monday it might need to raise taxes 4.14 percent.

 The board had previously proposed a tax increase between 1.4 percent and 3.5 percent  in the preliminary budget it adopted February 9.  The 4.14 percent increase would raise the millage rate to 47.331. This means the owner of an average property assessed at $71,000 would pay $3,360.50, or about $134 more than last year.

After Gov. Tom Corbett presented his budget March 8, the district's deficit increased to $2.5 million , Stafford said. But, she said, even with a 4.14 tax increase and state approval of exceptions, the district would need to close a $1.5 million shortfall either by increasing revenues, using the fund balance or cutting expenses.

"The revenues are not coming in," Stafford told the board.

"So it has to come from the expenditure or fund balance," Superintendent Robert Gross said.

Gross recommended the board invite local legislators to its final budget meeting April 16 to see the hard choices they will have to make.

Stafford said she was surprised to learn the district would lose $200,000 in social security reimbursement.

The district's expenses are expected to increase 1.61 percent to $30.7 million in the 2011-2012 school year. Revenues are projected to be $28.4 million.

The state Department of Education had previously determined the maximum amount Salisbury Township School District could raise taxes was 1.4 percent. If the board wants to raise taxes above that, it must apply for "exceptions," or line items that get special consideration from the state, such as retirement contributions, grandfathered debt expenses and certain special education costs, that if approved allow a board to raise taxes above the maximum.

The Department of Education must issue a ruling on the school district's previous request by March 23.