Schools

2% Tax Hike 'A Realistic Number,' Parkland Officals Say

Parkland School Directors approve a proposed final budget tax increase of 2.43% for the 2013-14 school year Tuesday night. However, further savings could trim the hike to 2% by June's final adoption.

The Parkland School Board approved a proposed final budget for the 2013-14 school year Tuesday night that carries .

However, Business Administration Director John Vignone said that an increase closer to 2 percent when the final budget is adopted next month "is a realistic number."

The total budget for the 2013-14 school year is $143,685,085. The fund balance appropriation for the budget is $4 million, which equates to 0.56 mills to offset the tax increase. That will reduce the district's fund balance to $17 million from $21 million.

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"We were able to mitigate the tax impact and will continue to do so until the final budget in June," said Parkland Superintendent of Schools Richard Sniscak.

Vignone told board members during a pre-meeting workshop session that further real estate assessment appeal settlements and new real estate construction is putting money back into the budget.

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Vignone said 18 appeal hearings put money back into the budget to the tune of $232,000, which reduced the millage increase.

Salary adjustments (replacing retiring employees with new employees at lower salaries) in addition to benefit adjustments in conjunction with the salary adjustments saved a total of $81,520.

"These are working in our favor," Vignone said. "We set ourselves up as financially strong."

The Act 1 index for Parkland for 2013-14 is 1.7%, totaling $1,640,106, or 0.23 mills. Exceptions for PSERS (pensions) and special education total approximately $2,600,000, or 0.36 mills.

Vignone pointed out that employee benefits, totaling $34,847,538 and accounting for 24.25 percent of the budget, is "the largest growth area which we will try to control. Employee benefits jumped 12.8 percent year-over-year.

District salaries of $69,098,264 made up 48.09 percent of the budget, a 2.26 percent year-over-year increase.

A release from the school district said challenges impacting Parkland include assessment appeals, underfunded mandated special education costs and increasing state-mandated contributions to the PSERS pensions system.

Adoption of the final 2013-14 school budget is scheduled for June 25.

In addition, the board lowered the proposed special library tax for the Parkland Community Library from .3 mill to a proposed .1 mill. The adjustment to the rate was required as a result of the Lehigh County reassessment. Final board action will also be taken on June 25.


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