North Schuylkill tentatively adopts budget with no tax increase

May 20--FOUNTAIN SPRINGS -- The North Schuylkill school board tentatively adopted its 2015-16 general operating budget at a special May 13 meeting. It includes no tax increase, but a deficit is $170,119.

The preliminary budget of $26,827,004 shows an increase of $767,801, or 2.9 percent, in estimated expenditures over the current year's budget. The real-estate tax will remain at 37.96 mills in Schuylkill and Columbia counties. One mill brings in about $170,000.

--Occupational assessment tax -- $218.50

--Real estate transfer tax -- 1 percent (shared with school district and municipalities)

--Earned income tax -- 1 percent (shared with school district and municipalities)

--Local services tax -- $5

The vote was 8-0 for the tentative budget adoption. Board member Suzanne O'Neill was absent.

In his statement about the proposed budget, board President Charles "Chaz" Hepler said, "The financial plan is based on the state funding proposed in the governor's budget. This was accomplished by the diligent work of the board and administration, along with the cooperation of employees of the North Schuylkill School District."

Local revenues are estimated to bring in $11,298,578, state revenues at $14,821,307 and federal revenues at $537,000, totaling $26,656.885. Since the total estimated expenditures are $26,827,004, the deficit is $170,119.

Business Manager Robert Amos said a major increase in the budget is retirement costs.

"Our biggest increase was the retirement expense and contractual obligation for raises," Amos said. "Where we were able to find savings, or not as much of an increase, is switching our health insurance from being fully insured to being self-insured through the IU 29 Trust. We were expecting to see a 15-percent increase by being fully insured, but by going self-insured we're planning to see a 5-percent increase."

"That was year-long progress for Mr. Amos, who had done a lot of research to make sure he had the best interest of the district," Ackell said.

"And cyber-charter schools are nagging every district," Amos said. "We paid out about $770,000 this year, which is roughly about $120,000 higher than the previous year."

Amos said the estimate state revenues is being based on the proposals announced by Gov. Tom Wolf.

"We did budget the full amount of what's in Governor Wolf's plan," Amos said. "It is our understanding over the last 30 years that almost always, if not always, the governor's initial proposal for education funding has stayed. And that's why we were able to do it without a tax increase."

"We're trying to be fiscally responsible as a district," district Superintendent Robert J. Ackell said. "Looking at day-to-day operations, what we can do to save daily."

Special education costs have also been kept under control, with the district picking up more of the services.

"We've been taking back more services and are expected to provide the related services for our own children rather than the IU providing that," Amos said. "Our special ed director, Knute Brayford, has done a fantastic job in bringing back some emotional support rooms back to our district, that saw significant savings."

Amos commented on Hepler stating the cooperation of the employees has also been part of the district holding down spending.

"They've been great at utilizing our existing supplies and mindful on any additional expenditures," Amos said. "The teachers have been very cooperative in that. They made a change in their deductible for health insurance about two to three years ago that has ripple effects year to year. They have been part of the cost savings on some concessions they've made for the long-term good of the district."

In the closing paragraph of his prepared statement on the tentative budget, Hepler said, "In the past five years, North Schuylkill taxpayers have seen the lowest average tax increases over the last 14 years, even though the contributions from the commonwealth have decreased or have become flat-funded. We take pride in this accomplishment and will continue to be fiscally sound in spending tax dollars. We also would like to thank our administration and employees for their ability to weigh needs versus wants in making difficult decisions to curb spending in order to keep our taxes at their current level."

On a related matter, Hepler said, "In an effort to reinforce the school board and administration's strong commitment to the educational programs, this budget includes increasing the number of AP (Advanced Placement) courses that will be offered to our students, while maintaining the finer arts and music programs along with our core curriculum programming. Additionally, the school district will be installing a new wireless Internet system in the elementary and high schools in an effort to support a new BYOD (Bring your own device) policy."

The BYOD system will assist students in working with their own electronic devices.

"It will allow students to use their own laptops and smartphones to connect to our wireless Internet," Ackell said.

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