May 11, 2010 By Patty Yauger 3 min read

CONNELLSVILLE – It appears a tax increase will likely be a part of the budget process, according to information given Monday by Connellsville Area School District budget manager Eugene Cunningham. According to the proposed spending plan, expenditures exceed revenue by approximately $1.7 million and the deficit figure is after a 0.5418 mill tax increase is added to the revenue income for the 2010-2011 school year.

“The real estate tax rate used for the proposed final budget is the maximum rate that can be used under the Act 1 index,” said Cunningham, adding that the district index is 4.3-percent.

The increase would change the rate from the current 12.6 mills to 13.1418 mills and net the district an additional $546,155 in revenues.

Cunningham said that with the anticipated debt service increase of $300,000 for the planned high school renovation project, a rise in health insurance and retirement costs in addition to contractual increases, a balanced spending plan is not conceivable without raising taxes.

The budget deficit could be trimmed if additional teachers retire and the state subsidy amount is increased.

To date, 28 teachers have notified the district of their intentions to retire at the end of the school year.

“There may be additional retirements that will affect the expenditure for salaries and related fixed costs, such as social security, retirement, unemployment and worker’s compensation insurance costs,” said Cunningham. “The decision regarding the number of teachers that are replaced will impact the budget as well.”

According to the revenue figures, the district anticipates the receipt of $46.9 million in state funding, nearly 70-percent of the $67.1 million budget.

Other revenue sources include local tax revenue, federal funding and miscellaneous income.

Cunningham said the basic subsidy figure could be reduced depending upon the state budget.

In an April 27 letter to the district, state senators said that the Commonwealth was also experiencing financial problems and cautioned that it might not be able to allot the money proposed by Gov. Ed Rendell in his budget.

“We urge you to be very cautious when preparing your 2010-2011 budget,” said Senate education Committee Chairman Jeffrey E. Piccola.

“While we will certainly study and consider the merits of the Governor’s education spending proposal and work to enact a final budget by June 30, there is no way to accurately predict appropriation levels at this time.”

The district budget must be submitted to the state Department of Education by June 30.

Cunningham recommended the board adopt the proposed budget at Wednesday’s meeting and then meet to reduce expenditures and further discuss the proposed tax increase.

In other matters, the board is also likely to take the following action at the Wednesday board meeting:

Eliminate the Connellsville Area Career and Technical Center (CACTC) agriculture program at the end of the school year.

Approve a 2010-2011 school calendar with a school start date of Aug. 30 and ending June 3, 2011.

Add physical education classes to the summer course offerings for the senior high and CACTC.