Grim is the word for the proposed Conneaut School District budget that takes effect
July 1.

Conneaut School Board of Education was given a preview of the document at their work session on Wed., Feb. 3, with all nine board members present, Jody Sperry, president; Rick Kelly, vice president; and Dr. Carol Bocan, Gina Mattera McCauley, Lorri Drumm, Dr. Walt Thomas, Don Ellis, Jr, Cheryl Krachkowski, and David Schaef.

Costs increases are seen not only in salary numbers, but also in health insurances and retirement costs.

Retirement costs are being projected to raise substantially over the next few years to fund retirement pay with the problem going back to the early 2000s when the state legislature and then Gov. Tom Ridge agreed to increases in retirement benefits but did not fully address the pay out issues. That pay out issue has seen little action since then.

With the pay out crisis about two years away, the state retirement board has directed the first increase in retirement paid by those currently working in this upcoming year.

Retirement deductions are paid not only by the employee but also by the school district and the state. In this year’s budget the school district and others are contributing at a rate of 4.78% towards the retirement; that is to increase to 8.22% in next year’s budget, which will cost the sc school district, i.e., taxpayers an additional $454,384, a 67.3% increase. That increase is equal to a tax rate increase of 1.84 mills.

The school district can only increase taxes by 1.97 mills under the Act 1 state law unless taxpayers would approve a larger increase at the polls. No decision has been made as to whether to approach taxpayers in that way.

The proposed budget projects the 1.97 tax increase which would cost a homeowner with a $50,000 assessment an additional $98.50 over current rates.

Other large increases seen in the proposed budget include $490,206 in salaries, $480,737 increase in benefits with a large portion of that increased health insurance costs, $531,400 increase in transportation, and a $544,922 increase in charter school costs with some 70 regular st students and 10 special education students taking part in those schools.

Assessed value of properties is down in the school district, the business manager pointing out that is a first in the 16 years he has been in the district.

County officials have approved decreases in tax assessments for such properties. as PPG, MFG, the old Greenwood Elementary School, now in private ownership and housing a business, and even the Conneaut Lake area Station 3 fire department social hall.

The 2009 - 10 assessed value of property is down $1,127,656 and is projected to go down to $274,612,111, another $289,101 for the upcoming 2010 - 11 year. Property assessment determines how much one pays at a going tax rate and decreasing value means one must pay more just to keep even let alone attempt to cover additional costs.

Earned income, a reflection of those working or not working, is projected to fall by $100,000 due to the poor economy.

The school district did not raise taxes in his year's budget, due to the economy and trying to help taxpayers.

The state increased its payments by only $205,719 from the 2008- 09 school year to the current 2009- 10 school year, less than one mill of tax.

They also reduced the amount of money for special education from $1,814,472 to a projected $1781,732, a $32,740 drop which has to be made up by local taxpayers. The school district has fewer teachers on staff than a half dozen years ago reflecting declining enrollment.

The proposed budget is up for adoption at the next school board meeting on Wednesday, then will be worked on through June when a final adoption must be made.

The school district awaits word on what funds the state will pay this upcoming school year with the state budget to be reviewed by the governor on Tuesday. What the state will actually give will remain unknown until a final state budget is adopted. This year’s budget was adopted 101 days late.