SHENANDOAH - The Shenandoah Valley Board of Education adopted its preliminary general operating budget for the 2013-14 fiscal year at Wednesday's meeting that includes no tax increase and no staff cuts.
According to the proposed budget, the real estate tax will remain at 53.30 mills. Each mill brings in about $70,000.
District Superintendent Stanley G. Rakowsky explained after the meeting that the school board and administration made the difficult budget decisions in cutting personnel last June while other school districts are considering similar moves for the 2013-14 school year.
"We did last year what other school districts are doing now," Rakowsky said. "We did a lot here in the past year without a lot of controversy. We're using money from the piggy bank and we're hoping to ride out this current administration (in Harrisburg)."
In the 2012-13 budget, the school district held the line on real estate taxes at 49.30 mills with budget of $16,190,966 that also included elimination of three professional staff positions, two full-time support staff positions in the elementary and secondary libraries and a 50 percent reduction in staff in-service activities. A budget shortfall of $1.1 million was balanced from money in the district's "rainy day fund."
The 2012-13 budget included a real estate tax increase of four mills and furloughing of 10 teacher and three teacher aide positions.
The 2013-14 proposed budget of $16,120,873, a decrease from the 2012-13 final budget of $16,133,004, includes the following tax schedule that also remains the same as the current schedule. Taxes marked as "shared" are divided, 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) - One percent (shared). Levied on salaries, wages, commissions and other compensation.
- Realty transfer tax (Act 511) - One percent (shared)
- Per capita tax - $5 (As per Section 579)
- Per capita tax - $5 (As per Section 511 (shared))
- Occupation privilege tax (Act 511) - $10 (Shared). Levied on all individuals, resident and non-resident, employed in or engaged in any occupation in the school district
- 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 or persons, or other entity
"We're not planning anything different at all in the new school year," Rakowsky said. "We are facing negotiations with both unions (teachers and service support staff). That's another thing that we're looking at."
The only potential change may come from not filling a vacant elementary teacher position, according to Rakowsky. During the meeting, the school board accepted the resignation of Walter Hall as sixth grade elementary teacher, effective at the close of this school year.
"We're looking to see if we have to refill the position, but that is up to the principal," said Rakowsky.
Business Manager Anthony P. Demalis Jr. explained the current sixth grade class is large and has four teachers, but the fifth grade class has fewer students, so three sixth grade teachers for next year may be sufficient.
Demalis said that any changes for the new budget year will be minor.
"It doesn't mean we won't have savings if we can do something in a different way, but there are no major programatic changes like last year," Demalis said.
Demalis said that Shenandoah Valley is waiting for what the district will get from state and federal sources.
"We're just trying to keep what we have for the next two years, not raise taxes to any major level," Demalis said. "Hopefully things will get better. If not, there will be major changes, and we won't be the only school district making major changes."
Rakowsky explained that even last year's cuts were below what the district was allowed through the state Department of Transportation.
"Last year we had the ability to cut 27 positions," Rakowsky said. "Based on our mandated courses, (PennDOT) gave authorization to cut that many positions. We still can cut those remaining positions, but that's not an option we're not going to exercise."
The formal budget adoption will be voted on in June, possibly in a special meeting early in the month.