Carmichaels school board to place income tax question on ballot
The Carmichaels Area School Board Thursday approved placing a referendum question on the May primary ballot asking residents to hike their earned income tax by an additional .5 percent. No one inquired about the proposed increase to offset property taxes at the district’s required public hearing under Act 1 or the Pennsylvania Property Tax Relief Act. Few residents attended.
If approved by voters in May, working Carmichaels residents will pay a total 1.5 percent earned income tax, with 1 percent going to the school district and .5 percent going to the borough.
With the estimated $347,530 the school district will receive under the increased rate, residents who own their homes and have filed a homestead/farmstead application by March 1 and had it approved will see a $224 reduction on this summer’s property tax bill.
Still, not everyone will benefit from the tax shift, agreed district Business Manager Amy Todd.
Those who will receive the most benefit are individuals who do not pay earned income tax, but own their own home.
Individuals who work and have a high income will benefit the least by actually having to pay more in earned income, said Todd.
A breakeven point is reached for some district residents where an additional earned income tax would balance out a property tax savings, Todd said.
The school board followed the recommendation of the district’s tax study commission, which analyzed the district’s taxing structure as recommended under Act 1.
The tax study commission did not factor in receiving gaming money from the state to assist in property tax relief. About $500 million from casino and racetrack profits has be deposited into a state account before it is turned over to the taxpayers in the form of property tax relief.
In other business, the board approved sending State Rep. H. William DeWeese, D-Waynesburg, a letter asking to fund a feasibility study to look at consolidating the Carmichaels, Southeastern Greene and Jefferson-Morgan school districts.
Superintendent Craig Baily said, if funded, the study will look at everything – from staffing to buildings – in each of the three school districts. Each district’s superintendent signed the letter that requests a meeting with DeWeese, said Baily.
He added that the study would follow the lead of Gov. Ed Rendell’s plan to lower the number school districts across the state. Five of the state’s 501 school districts are in Greene County.
Baily stressed that nothing has been done to formalize the consolidation, while board President Ron Ferek added that the board approving to send the letter does not reflect a determination of any sort.
The board also conducted the following business:
– Accepted the retirement of grade 5 instructor, Cheryl Voytek, and the resignations of assistant football coaches Justin Stephenson and Dale Piper.
– Announced scoreboards will be installed at the district’s baseball and softball field once the equipment arrives around April 1. Lewis May, director of buildings and grounds, said the scoreboards should allow for better visibility so information can be seen from all angles.
– Heard from auditor Jim Milinovich of Milinovich & Co. that the district’s audit report for the fiscal year ending June 30, 2006 shows “a clean report from top to bottom” and good internal controls on spending. A single audit was conducted on the district’s Title 1 dollars since the district receives over $500,000 in the federal funds. Millinovich also lauded Todd, who was hired last year, saying she is making existing controls more unified. “Everything is managed very well,” said Milinovich.