Jeff-Morgan board adopts budget with tax increase
JEFFERSON — Jefferson-Morgan School Board voted recently to adopt the district’s 2014-15 budget that raises property taxes by 1.39 mills, the maximum amount allowed.
“This comes with the full recommendation of the committee. We are raising taxes,” said Director Cindy Jento, who serves as chairwoman of the board’s budget and finance committee.
The new budget, approved by a 7-1 vote, reflected no changes from a proposed budget approved last month after the district learned in April that it had received an exemption from the state Department of Education to increase taxes this year in excess of the inflationary index established by the Taxpayers Relief Act, allowing the district to increase property taxes by an additional $91,000.
The 2014-15 budget represents 4 percent increases in health insurance and retirement contributions, as well as increases in salaries, which were far beyond what had been anticipated, said district business manager Jennifer Foringer, who had called for a complete reworking of the preliminary 2014-15 budget.
“It’s a hard decision,” said Director Dan Wagner, adding that as taxes are raised each year, it becomes a burden on the community, with many residents living on fixed incomes and dealing with the rising cost of living in general.
The $12,881,000 budget represents an increase of $648,00 from the current year’s budget.
By raising the millage from 24.24 to 25.63, property owners with property assessed at $50,000 in the district will pay $1,281 this year, an increase of $69.50.
Property owners eligible for exceptions under the 2014 Homestead and Farmstead Exclusion resolution may qualify for a $242 reduction in taxes.
Jento said that of the total increase in the budget, 12 percent reflects increases in salaries, 8 percent from increases in special education costs and 39 percent results from increases in retirement costs.
“We have a pension crisis in the commonwealth,” said Director John Shaffer, who asked constituents to urge state lawmakers to reform the current public school employee retirement system that is placing burdens on rural school districts, especially, and making it increasingly difficult for such districts to meet the educational needs of their students and complete planned renovations.
“We, as a board, should be petitioning our state representatives,” he added.
Director Jon Hildebrand, the only board member to vote against the adoption of the new budget, raised concerns that the district would have to forgo hoped-for renovations this year.
About 23 percent of the total budget increase, or about $150,000, will be earmarked for improvements to the district’s middle-senior high school.
The district had a wish list of proposed renovations, but after receiving the results of a feasibility study, the board realized that many renovations will not be affordable at this time.
“It’s just out of our reach,” Jento said.
“Our plan is we are going to borrow money,” she said, adding that the board will determine with its financial planner how much the district can borrow based on annual payments of $150,000, and will be working with its architect to best use the money.
“All we can manage is to get some of these basic necessities done and meet our financial obligations,” Jento said, noting that a priority would be the roof.
Board President Lisa Mattish said that a list of repairs would need to be prioritized, but that funds available would “definitely be earmarked for the most critical items.”
In response to suggestions that the answer to the district’s woes may lie in the consolidation of school districts, Mattish cited a study in which such measures did not necessarily produce savings and that school districts are “resistant” to the idea.
In other business, the board heard from resident Richard Knight, who expressed concerns about safety and increased traffic on Route 188 should EQT begin 24/7 tanker truck operations serving the natural gas drilling industry at a proposed water filling site within 300 yards of the school property.
Knight said that about 4,300 vehicles already traverse the road in front of the school buildings each day, and that he had a petition signed by 150 other residents sharing his concerns.
He added that should the proposed operations go forward, it would decrease property values while doing nothing to stimulate the local economy.
Board Vice President Bob Mitchell said that representatives from the board were planning on attending a zoning hearing regarding the proposed site that was to be held Tuesday at the Morgan Township municipal building.
In other matters, the board approved the purchase of a reading series for use by students in kindergarten through grade six at a total cost of $40,929.
Supplemental resources in the amount of $6,732 will be paid for with Title I funds.
The next board meeting will be held at 6:30 p.m. Monday, July 28, a deviation from previously posted dates, Mattish said.