School boards should reduce tax hikes, if state subsidies increase
The long, drawn-out state budget process, which often doesn't end until the June 30 deadline or sometimes days later, is unfair to the state's 501 public school districts. By law, districts are required to have a new budget in place by June 30, even though they have no way of knowing exactly how much school subsidy money the new state budget in its final form will be providing.
As state lawmakers continued to wrestle with their budget task this month, the nine school districts located all or in part in Butler County gave final approval to their 2007-08 fiscal packages — and all of those budgets include tax increases for this county's property owners, as follows:
Butler, 2 mills; Mars, 4 mills; Slippery Rock, 4.6 mills; Moniteau, 2.48 mills; South Butler, 2.9 mills; Seneca Valley, 4.26 mills; Karns City, 4.18 mills; Freeport, 1 mill; and Allegheny-Clarion Valley, a 0.02-mill hike.
With budget deliberations still going on in Harrisburg with just a couple of days remaining in the current fiscal year, school districts' subsidy figures still are not locked in. But it is to be hoped that the state's new fiscal plan will be generous to the school districts, as it seems destined to be for a number of budget categories, including transportation.
If school districts do in fact receive more money, they should use that money to reduce the tax increases they approved this month, not for spending that is not now included in their new budgets.
That can be done by reopening the new budgets and adjusting the millage — which would not be unprecedented.
The taxpayers are due a break — if one is available.
For example, in the Butler School District, the real estate tax has been approved as 113.5 mills for 2007-08; the tax rate for the 1994-95 fiscal year was 75.3 mills.
The last time the Butler board approved a budget without a tax increase was for the 1998-99 fiscal year, when that year's budget was based on the same 83.5-mill property tax rate that was in effect for 1997-98.
Last year, the school board approved a five-year "early bird" contract with teachers that each year provides raises well above what many other area workers are now receiving or hope to receive. Later, the board also granted generous pay increases to district administrators.
That occurred despite the specter of future pension obligations stemming from the state legislature's irresponsible action in 2001 sweetening pensions by an excessive 25 percent for members of the Public School Employees' Retirement System — and 50 percent for the lawmakers themselves.
That increased pension obligation will affect all districts across the commonwealth and is beyond the Butler district's — and all of the other districts' — control. Entering into wage contracts that provide raises well above the rate of inflation is within districts' power to control, but that involves tough decisions many boards are reluctant to make.
When a window for taxpayer relief is available — however small — boards should make the right choice and give property owners a break. First, there must be an inflow of additional money, and whether that happens under the upcoming state budget presumably won't be known for a number of days, or even several weeks.
In these final days of the state's protracted annual budget exercise, Butler County residents should pay attention to where the state's money will be going, including how their school district fares under the overall spending package.
If there is additional money sent the school districts' way, property owners should likewise pay attention to their school board members' reactions regarding allocation of the extra money.
Prior to a final decision being made, they should let their voices be heard, whether or not they think a tax reduction is in their district's short- and long-term best interests.
