Central Bucks School Taxes Likely Going Up

Faced with dramatically reduced state and federal funding, the Central Bucks School Board has approved a 2012-2013 preliminary budget that raises the real estate tax rate by 1.66 percent, eliminates 10 positions, and uses $1.3 million from reserves.

The board voted 8-0 (John Gamble was not present) Tuesday night to post the $287.4 million budget for public review. Business manager Dave Matyas predicted more changes will be made before the board considers a final budget on May 22.

"We still have work to do," said Matyas.

The 1.66-percent property tax increase would cost the owner of a property assessed at the district average of $40,000 an additional $80 per year. It would be the second lowest tax increase since the early 1990s, when the board held the line. Last year, taxes went up by about $65.

The 10 jobs on the chopping block include seven regular education teachers, two administrators and one support staff position. A .4 time special education teaching position also would be eliminated.

If the cuts go through, the district will have cut a total of 234 positions over the past five years, saving a total of nearly $6 million a year in salary and benefits.

Matyas said most of the teaching position cuts will be at the elementary school level, where enrollment is expected to drop by about 450 students next year.

While eight teachers will lose their jobs as a result of , they likely will be replaced by other teachers, depending on enrollment patterns that won't become clear for another month, said Matyas.

Before voting to approve the preliminary budget, the board heard a presentation from Matyas about the disturbing reduction in state support, which has shifted more of the the burden for funding public education to local taxpayers.

Since 1975, state funding has shrunk from about 30 percent of the district's budget to about 15 percent next year. Had state support remained the same over the years, real estate taxes would be about $1,000 a year lower for many property owners, Matyas estimated.

Starting in 2012-2013, the state will eliminate transportation subsidies, Social Security reimbursement, and the charter school subsidy in favor of a single grant. Future budgets will be based on 2012-2013 funding, regardless of how much costs go up, said Matyas.

Short-term savings will be realized by hiring part-time employees who do not receive health care benefits, reducing insurance premiums, negotiating contracts with electricity and natural gas providers, reducing substitute time and overtime, renegotiating software licensing deals with Microsoft, and renegotiating the district's prescription contract.

Longer term cost saving measures under consideration include:

• outsourcing transportation services;
• studying custodial staffing levels;
• studying extended day kindergarten;
• placing a freeze on future construction borrowing;
• maintaining focus on energy efficiency initiative;
• evaluating properties that may be under-assessed for taxing purposes.