Connellsville residents could see 2004 tax increase
CONNELLSVILLE – Unless state legislators plug additional funds into its education budget, Connellsville residents will likely see an increase in next year’s tax bill, according to a district official. “We’ve got to look down the road,” said Bill Harper, Connellsville Area School District business manager. “If we don’t do this now (raise taxes), I foresee financial problems in the future; maybe not next year, but certainly in the 2004-2005 school year.”
On Monday, Harper said school district business managers across the state were still awaiting word on the status of the state budget in an effort to finalize their respective spending plans that must be approved and submitted to the state Department of Education by June 30. The state budget must also be approved by the same date.
Connellsville has scheduled a special meeting for Thursday to address the district’s $50 million budget.
“It’s a waiting game,” said Harper. “(The state) puts us in a difficult situation, because it doesn’t know what its going to do, therefore we’re not sure what action we will be required to take.”
Nearly 70 percent of the district budget is funded by the state.
While the state administration is proposing a one-percent increase in state subsidies, Harper said he anticipates legislators will edge the amount to two-percent, still falling short of meeting last year’s designation by two percent.
Harper said he has prepared the district budget based on a two-percent increase in state subsidies.
“It’s a roll of the dice,” he said.
Despite the projected increase, the district spending plan still shows a hefty $1.7 million deficit, which Harper has recommended be decreased by half with a 4.67 mill tax hike.
The percentage would cost the average taxpayer about $46, if approved by the board of directors.
The remaining shortfall would require a withdrawal from the district fund balance.
“We can’t continue to tap the fund balance,” said Harper. “It’s going to have to remain solvent when we go for a bond issue next year to do the Springfield Township Elementary School project.”
The board of directors has approved the construction of a new facility that is now being reviewed by the state education department.
Historically, the district budget increases approximately $1.7 million annually due to contractual obligations and building-related expenses, said the financial planner.
The district last increased real estate taxes four years ago.
Harper said board members are not rushing to support his proposed increase. An earlier work session to determine agenda items for the June regular meeting stopped short of adding the budget issue because those present did not advocate balancing the spending plan through a tax hike.
“All I can do is to offer my recommendation,” he said. “What (the board) decides to do with that information is up to them.”
The board will meet at 7 p.m. at the high school.