West Shore School District 2014-15 budget deficit pared further

April 10--West Shore School District's projected deficit for 2015-16 has been pared another 16 percent, to $4.2 million.

That's without raising taxes beyond the 1.9 percent state spending index, and without the $1.123 million rise in basic education funding proposed by Gov. Tom Wolf.

In January, the board had been looking at a $6.5 million deficit, which was reduced to $5 million in February.

With a 1.9 percent increase, the Cumberland County real estate tax rate would be 9.854 mills, and 12.8292 for York County, Melinda Stuck, director of business affairs, told the West Shore School Board Thursday night.

At that rate, Cumberland County resident would pay $985.40 per year, or about $25 more; while a York County property owner would pay $1,282, or about $23 more, based on a $100,000 assessment.

The district has received state approval for exceptions to raise taxes higher than the index, which could increase taxes up to 5.09 percent for Cumberland County and 5.26 percent increase for York County. That would bring in another $1.7 million, Stuck said. The exceptions are for retirement and special education costs.

At the maximum level allowed, Cumberland County residents would pay a rate of 10.1788 mills, or $1,018 per year, which is an increase of about $58 per year. York County residents would pay 13.2606 mills, or $1,326, an increase of about $67.

While the governor's budget plan would help reduce the deficit further, Stuck said districts have been advised against budgeting for the governor's proposed funding increase by Republican legislators and the Pennsylvania Association of School Business Officials.

She also recommends budgeting real estate tax revenue at a lower collection rate starting next year -- 96.1 percent, compared with the current 98 percent.

The district will fall short of the 98 percent budgeted collections this year, but increased collection in other areas should end the year with a surplus.

For 2015-16, she projects about $1 million less in tax revenue by using the 96.1 percent collection rate.

But helping to reduce the deficit is a projected $875,000 increase in earned income tax, along with potential increase in per capita tax revenue.

Shifting the tax millage rate to four decimal places in real estate tax will also help revenue. This year, that change would have brought in another $30,000, Stuck said.

"When I say we are looking under every rock, we are looking everywhere," she said.

Board member Brian Guistwhite asked if the district is looking at expenditure cuts as well.

Stuck said she has, and cited these spending cuts found so far: health insurance, $647,000; fuel, $381,000; diesel fuel, $228,000; savings due to retirements, $332,000.

"We intend to continue that conversation next week," said Superintendent Todd Stoltz.

In other business, the board will vote April 16 to advertise for new band uniforms for the West Shore Marching Band, which is forming through a merger of Cedar Cliff and Red Land high school bands.

The board will also vote on three resolutions urging legislative action in three areas: pension reform, changing funding for cyber charter schools, and increasing basic education funding.

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