State support questioned

Conneaut School District residents will see a 1.97 real estate tax increase when tax bills arrive at homes in August.

That increase will cost a property owner with an assessed value of $25,000 a $47.20 increase; a property owner with a $30,000 assessed value, a $59.10 increase; and a property owner with $50,000 assessed value a $98.50 increase.

The school district did not raise taxes in this current year’s budget as they struggled to give taxpayers a break in the local economy but could not see their way to do so a second straight year.

The budget does not include any new positions or cuts in programs and projects no increase in state funding.

The state has not approved a budget for the year to begin July 1 and there is no way to tell if any increased aid might be expected.

Last year’s state budget was 101 days late in getting passed and set the basic education funding at levels seen 4 years ago with any increases given a result of using federal stimulus funds.

It is thought the same scene may be played again with federal stimulus funding projected to not be available in another year.

The vote to increase the real estate taxes by 1.97 mills, the most allowed under law without seeking voter approval, was by 6-1 vote with Jody Sperry, Lorri Drumm, Gina McCauley, Don Ellis Jr., Cheryl Krachkowski, and David Schaef voting yes, Dr. Carol Bocan voting no, and Dr. Walter Thomas and Rick Kelly absent. Kelly did arrive at the meeting after the vote.

Schaef , in voting yes, did so, saying “with a lot of reluctance” which was also echoed by Sperry who added “we don’t have a lot of choice.”

Schaef has noted concerns with covering costs in the future as the state’s Act 1 law limits increases on the revenue side but does nothing to control costs. The district has reduced teaching staff over the past few years as enrollment has decreased. End of year enrollment in the 2002 -03 school year of 2,844 is now 2,499, a decrease of 345 students.

Those taxpayers, who have applied for homestead/farmstead reductions, will see a credit of about $196 on their tax bills That credit comes from the slots gambling in the state, a figure seen as far less that what was promised when efforts were being made to permit the increased gambling in the state.

The budget approved was the 4th draft put forth over the past 5 months or so, this last being an $88,100 decrease on expenses.

Among the largest increases in expenses was a 13.4% increase in health insurances, a $784,467 amount .Teachers and others in the district do pay towards their health insurance.

Social Security increases are pegged an a 6.5% increase, some $242,347.

Retirement is going up by $502,625, a 74.4% increase from $675.283 to $1,177,908. This is the amount the school district pays and is mandated by the state. Teachers pay separately into the fund from their salaries.

The state is facing a retirement fund crisis that began back in the early 2000s when pensions were increased by the state under Gov. Tom Ridge. Teacher retirees do not get automatic increases in their retirement amounts, those rates not having been raised in better than 6 years.

The salary category is increasing by 3.3% overall, a $464,563 figure.

With those increases leading the way, the budget for 2010-11 is a total of $37,032,676, with expenses [$37,032,676] more than revenue [$33,690,243]. That amount must be made up of fund balances and cuts.

This current year’s budget estimated spending $2,446,319 from fund balances but is now projected at $353,518, a use of 1.47 mills.

A mill of tax brings in roughly $240,000 Thus one can see that retirement, etc., expenses noted above far outstrip the limit to bring in revenue under Act 1 with limited support from the state.

Fund balances of $3,300,714 is being estimated to be spent in the upcoming budget but hopes are much less than that will actually be used.

In 6 of the past 10 years, the school district has been able to add a little to fund balance which means revenue was better than expenses.

Dr. Carol Bocan , in casting her no vote, wanted to send a message to state legislators of her disgust with them and their lack of addressing school district needs, not only here but across the state. They are quick to mandate but not provide the support.

Dr. Bocan noted she has contacted state legislators about her concerns but their response has been poor.

She has spoken to an increase in state sales tax of 1% to support schools better, not taxing food and clothing.She notes local school districts have limited means to support schools and meet expenses, and spoken up on behalf of senor citizens as has Schaef and others.