Countdown to school budget

Posted by Rich Schwartzman on June 9, 2015

Unionville-Chadds Ford School District directors are less than a week away from voting on a proposed budget, but at least one detail of the budget is unclear. What will the tax increase be?

In May, the board approved — by a 5-4 vote — a proposed final budget calling for a tax increase of 2.01 percent, weighted between Chester and Delaware counties. Under that scenario, Chester County property owners would see a millage rate change from 26.44 mills to 26.92, while those in Delaware County would see their rate go from 22.20 to 22.83.

In real dollars, Chester County property owners with property assessed at $26,000 would pay an additional $126 per year, while Delaware County property owners would pay an additional $160 per year.

Directors also considered an average increase of 2.5 percent and 2.85 percent, but during the June 8 work session, the board discussed the possibility of a 2.25 percent increase.

Discussion revealed that no matter which increase is passed — even the lower 2.01 percent increase — all education programs would be fully funded and the teachers could still receive a fair and mutually acceptable contract.

The difference, according to Director Gregg Lindner, is what would happen during the next several years. He favors the 2.5 percent increase because the 2.01 percent increase is too shortsighted.

“As a school director, I do not focus on the short term relative to financial planning in the district. I don’t do that in my business, and I don’t do that while looking at the district’s finances and tax policy. One gets in trouble looking only at the short term,” he said.

He added that the 2.01 percent increase would use up too much of the district’s reserve funds.

Lindner continued, saying the state-mandated Act I limits on tax increases force districts to look at the long-term effects of their budgets, but one of the exceptions to those limits — the contribution to PSERS, the Pennsylvania State Education Retirement System — will be going away after the 2016-2017 academic year.

He said previous cuts made in consecutive years led to a decrease in programs and an increase in elementary-school class size. Too small a tax increase now could lead to that happening again.

“I have seen this movie before…and I do not care to see the sequel,” he said.

Fellow Director Kathy Do said she agreed with Lindner that the 2.5 percent increase would be a safer choice, while Jeff Hellrung said he was comfortable either way.

Keith Knauss, who proposed the 2.01 percent increase last month, held to that proposal. Steve Simonson and Robert Sage agreed.

Simonson said he wasn’t in favor of accumulating taxpayer revenue.

“There is a risk that we could get into our reserves if estimates are wrong, but I think I’m willing to take that risk,” Simonson said.

Sage said the current proposal is a “responsible expense plan.”

“Our programs are fully funded. There are no cuts to programs, no changes to class sizes. Where we do have a decision to make is how we raise revenue to cover those expenses…We should only take from the taxpayers the amount that is needed to deliver our topnotch education program,” he said.

Sage went on to say the district has traditionally had a shortfall budget, but would wind up with a surplus.

“We always underspend,” he said. “Not once in 26 years have we spent 100 percent of our budget. On average, over those 26 years, we spent $1.6 million less each year than budgeted,” Sage said.

He explained that the district estimates expenses conservatively — overestimating costs — and only spends about 97 percent of what was originally anticipated.

Sage said that if 2015-2016 is a normal year, “we will end the fiscal year with an operating surplus of more than $1 million, even if we pass the 2.01 percent increase.”

About Rich Schwartzman

Rich Schwartzman has been reporting on events in the greater Chadds Ford area since September 2001 when he became the founding editor of The Chadds Ford Post. In April 2009 he became managing editor of ChaddsFordLive. He is also an award-winning photographer.