T/E School District Outlines Plans for Financial Sustainability

The T/E School District issued the following press release Friday detailing plans for keeping the district solvent during difficult and challenging financial times.

During the past five weeks, Tredyffrin/Easttown School Board members visited sixteen parent and community group meetings to provide information on the financial state of the T/E School District during the “Success and Sustainability” presentations. School Board members reached approximately 500 community members during the presentations and received positive feedback for their efforts.

The“Success and Sustainability” presentation is currently available on the T/E School District web site at www.tesd.net. Several more presentations to the community are scheduled through mid-March.

As explained to the community during the presentations, the District faces four financially related challenges: continuing revenue erosion; increases in contributions to the Pennsylvania School Employee Retirement System (PSERS); Act 1 tax limitations; and expense increases. In the area of revenue erosion, the presentation stated, “In 2010-2011, the cumulative effect of assessment appeals since 2006 is a loss of $6.5 million in property tax revenue.” In addition, interest income and real estate transfer tax revenue has dropped approximately $8.2 million over the last five years.

The second challenge is the projected increased rate of retirement contributions to PSERS. During 2012-2013, the District will contribute $3.5 million to PSERS and in 2015-2016 this contribution is expected to be $6.8 million.

The third challenge explained by the Board is the Act 1 tax limitations and the fact that the statewide tax cap for school districts is set at 1.7% this year.

Finally, the Board reminded the audiences that to address the fourth challenge of expense increases the Board has already accepted $713,500 in cost cutting strategies and will continue to evaluate additional budget strategies that address expense increases during the budget development period.

With approximately 70% of the District’s expenses being tied to personnel related costs, the Board recognizes the limited and shrinking resources the District has it begins contract negotiations. The T/E School District’s Collective Bargaining Agreement with the Tredyffrin/Easttown Education Association (TEEA) expires on June 30, 2012. Negotiations with the union began in January of this year.

The School District negotiating team includes Jeffrey Sultanik, Solicitor; Dr. Dan Waters, Superintendent; Sue Tiede, Human Resources Director; and Art McDonnell, District Business Manager. The Tredyffrin/Easttown School Board has determined that this negotiating team will negotiate the best contract for the District and the students. The team will be guided by the goals that the School Board has developed for contract negotiations and the School Board will remain active and engaged throughout the process.

The Board recognizes the importance of reaching the entire community with this presentation and, as result, will share the “Success and Sustainability” presentation at the February 27, 2012 regular Board meeting. The presentation will later be aired on TETV, Comcast Channel 14 and Verizon Channel 20, and will be available on the TESD web site.

At the end of each presentation, the Board has encouraged the community to stay involved by attending public meetings. In addition to the School Board meeting on

February 27, 2012 at 7:30 pm, there will be a Finance Committee Meeting on March 12th at 7:00 pm in the Tredyffrin/Easttown Administration Offices. The School Board will also hold budget workshops on March 19th and April 16th at 7:30 pm in the Conestoga High School auditorium. The T/E School Board encourages public participation during the budget development process so that the budget reflects the input of all stakeholders.

All School Board committee meetings have public comment periods. Inaddition, comments may be submitted to Arthur J. McDonnell, Business Manager, at mcdonnella@tesd.net or to the T/E School Board at schoolboard@tesd.net.