Politics & Government
School Tax Hike Likely for 2012
Preliminary budget estimates predict a 4 to 5.2 percent increase, though some program cuts are still likely, administrators said.
Taxpayers in the Bethlehem Area School District are likely to see a tax hike of between 4 and 5.2 percent in the 2012-13 school year, administrators told school directors Monday evening.
During a briefing for , Superintendent Joseph Roy said that the growth of legally mandated and contractual expenses is continuing to outpace the district's revenue, particularly in a flat economy, but that “more cuts of any substance will seriously start to undermine the education in this district.”
Additionally, costs associated with charter and private schools continue to rise, Roy said, adding that in the current school year, the district paid out about $12 million to such schools, and paid another $1.8 million to transport those students—about 30 percent of the district's transportation costs.
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“It's going to be a difficult budget season again,” Roy said. “Even at 5.2 percent, we still have to cut.”
Contractual salary and benefit increases are the largest reason for the shortfall, he said.
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The school board members briefly debated whether to start from a no-increase budget and work up, or to start with the premise of a 4 percent increase and see what may still need to be axed. In the end, the directors agreed to start with the higher figure.
The maximum the district is allowed to raise taxes this year by the state is 2.1 percent, though the district will be able to apply for exceptions for special education, transportation and pensions. If approved, the BASD would be allowed to raise taxes an extra 3.1 percent.
The district will also be looking at other revenue sources, such as municipal appeals, payment-in-lieu-of-taxes, and trademark and advertising as allowed by the Pa. school code, board secretary Stacy Gober said.
Additionally, the district will continue , administrators said.
“If we're able to shed the variable interest rate, then the economy won't be a problem,” Roy said.
The state requires the district to submit a preliminary budget at lease 90 days before the primary election, and a final budget by the end of June.
The BASD board will again revisit the matter at a special budget hearing scheduled for Jan. 11, 2011, fine tune things at its regular finance committee meeting on Jan. 17, and then give final approval at their regular meeting on Jan. 23, members said.
