Trinity approves preliminary budget without tax increase
Trinity School Board approved a 2010-11 preliminary budget worth $46 million at Thursday’s meeting, which is roughly $1.6 million more than this school year.
The budget does not include a property tax increase. The millage rate will remain 103.
However, board member Jack Keisling said he doesn’t see how the board can continue without a tax increase because of future costs, including the skyrocketing employee pension rate.
“We had some tough decisions to get where we are,” he said.
He said full-day kindergarten is in the budget. However, the board doesn’t know the final staff numbers because final student numbers aren’t available. There could be a reduction in staff, Keisling said.
Keisling said he is a proponent of half-day kindergarten, except for those who need extra help.
He said there will be tough choices for Trinity ahead.
Board member Jim Knapp said that in two recent years the board reduced taxes, even though it was aware of the coming pension crisis. He said he didn’t support those tax reduction because of the pension projections.
Board member Dennis McWreath agree with Knapp, saying enough money wasn’t set aside in the past, but the board needs to start now.
“We couldn’t get board members to start squirreling money away a few years ago,” he said.
McWreath said as the administration and board continues to work on a preliminary budget, he said he would like to see a 2 to 3 percent reduction in expenses to put toward the retirement costs. That would bring the amount in the retirement fund to $1.2 million.
But that will not be enough to pay the costs, which are set by the state. Employees, the state and districts pay into the pension system. District rates are set by the state retirement board. The school rates are estimated to jump from 4.78 percent this year to 33.6 percent in 2014-15. The state reimburses districts roughly 50 percent of what it pays into the system. Most teachers pay 7.5 percent into the system.
A Pennsylvania School Boards Association representative recently told the district’s finance committee that the pension increases are equal to at least 19 mills and that no district can meet those increases by only cutting costs.
The school board must approve a final budget by June 30.
The budget does not include a property tax increase. The millage rate will remain 103.
However, board member Jack Keisling said he doesn’t see how the board can continue without a tax increase because of future costs, including the skyrocketing employee pension rate.
“We had some tough decisions to get where we are,” he said.
He said full-day kindergarten is in the budget. However, the board doesn’t know the final staff numbers because final student numbers aren’t available. There could be a reduction in staff, Keisling said.
Keisling said he is a proponent of half-day kindergarten, except for those who need extra help.
He said there will be tough choices for Trinity ahead.
Board member Jim Knapp said that in two recent years the board reduced taxes, even though it was aware of the coming pension crisis. He said he didn’t support those tax reduction because of the pension projections.
Board member Dennis McWreath agree with Knapp, saying enough money wasn’t set aside in the past, but the board needs to start now.
“We couldn’t get board members to start squirreling money away a few years ago,” he said.
McWreath said as the administration and board continues to work on a preliminary budget, he said he would like to see a 2 to 3 percent reduction in expenses to put toward the retirement costs. That would bring the amount in the retirement fund to $1.2 million.
But that will not be enough to pay the costs, which are set by the state. Employees, the state and districts pay into the pension system. District rates are set by the state retirement board. The school rates are estimated to jump from 4.78 percent this year to 33.6 percent in 2014-15. The state reimburses districts roughly 50 percent of what it pays into the system. Most teachers pay 7.5 percent into the system.
A Pennsylvania School Boards Association representative recently told the district’s finance committee that the pension increases are equal to at least 19 mills and that no district can meet those increases by only cutting costs.
The school board must approve a final budget by June 30.
Labels: Trinity budget
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12:57 PM
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