Shenandoah Valley board adopts tentative budget with no tax hike

April 29-- Apr. 29--SHENANDOAH -- The Shenandoah Valley school board tentatively adopted its 2019-20 general operating budget with no change to the real estate tax rate, although fund balance money will be needed to balance the budget.

The proposed budget approved April 17 has the tax rate remaining at 56.975 mills in the next fiscal year. Each mill brings in about $68,643.

District Business Manager Anthony P. Demalis Jr. said the proposed budget totals $19,424,383 in expenses, an increase of $656,694 (3.5 percent) over the 2018-19 budget of $18,767,689.

However, the estimated revenues for 2019-20 are not quite at the same level at $17,996,746, leaving a deficit of $1,427,637. In the current fiscal year budget, the revenues were estimated at $17,171,539.

The budget will be balanced from the fund balance account, Demalis said.

"Total salary increase is $229,119, which includes two new positions," Demalis said. "One is a new mathematics/gifted teacher position. The other position is for deaf and hard of hearing, which was previously at Saint Clair Area. Their student aged out and we have two students in that class, so we're taking the class here next year. It's not like a new-new position, but it will be here instead of Saint Clair."

Health, retirement, charter school costs up

Demalis said health insurance costs are increasing $104,469 and retirement costs are going up $138,092. Cyber/charter school costs will increase almost as much as the insurance and retirement costs combined at $237,800.

"What we're expecting charter school tuition to be next year is $1,209,000," Demalis said. The charter school cost in the current budget is $971,200.

"Charter schools are really hurting the district as far as financials go," Demalis said. "We don't get any extra funding for it. ... We have about 65 to 70 kids that are at cyber-charters and Gillingham, which is a brick-and-mortar school. If we had all of those kids here, we would save -- $1.2 million. Our deficit next year is $1.4 million, and we're paying out $1.2 million to charter schools."

The issue was raised on April 17 with state Department of Education Secretary Pedro Rivera when he visited the school to engage in a roundtable discussion with district officials.

"I'm conservative when I budget, and I have to assume the worse," Demalis said. "I didn't budget what the governor has anticipated giving us. I hope it goes through, but I can't assume that."

Other taxes

Other scheduled taxes show no changes from the current fiscal year. Taxes marked as "shared" are divided for distribution, with 50 percent to the school district and the remainder to the school district's municipalities, Shenandoah and West Mahanoy Township.

--Earned income tax (Act 511) -- 1 percent (shared). Levied on salaries, wages, commissions and other compensation

--Realty transfer tax (Act 511) -- 1 percent (shared)

--Per capita tax -- $5 (As per Section 579)

--Per capita tax -- $5 (As per Section 511)

--Local services tax -- $5

--Occupational assessment -- $50 (As per Section 579)

--Five percent tax upon gross of any person/entity engaging in culm processing business.

--Ash disposal fee of $5 per ton for any cogeneration facility, person, persons or other entity engaging in the activity in the school district.

Contact the writer: jusalis@republicanherald.com; 570-628-6023

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