CATAWISSA RR - The 2012-13 preliminary budget and application for Act 1 exception nearly failed when the Southern Columbia Area School Board voted Monday night.
"If I don't vote yes, it would fail. I won't do that," Vice Chairman Charlie Porter said during the process. "We have been put in this position (from the state) where I feel I have to vote yes for fear of cuts."
Porter described the preliminary budget as a document with "false figures we're not intending on really using."
Director Charlene Cove said that's the point of a preliminary budget.
"This is starting point. It's in need of fine tuning. It might not be how we want it, but we have to start somewhere," she said.
$1.7M increase
The $18.240,632 preliminary budget is $1.7 million higher than last year's budget. The budget is facing difficulties because the district's contribution to Public Schools Employees' Retirement System (PSERS) retirement fund is increasing from 8.65 percent to 12.36 percent, health care costs are increasing 20 percent and mandated salaries raises go into effect. Furthermore, the state funding dramatically decreased last year and doesn't look any better this year.
To help offset the deficit, the spending plan calls for an increase in taxes from 30.994 to 39.35 mills in Columbia County and from 47.87 to 57.23 mills in Northumberland County.
The Act 1 index only allows a school district to raise taxes 2.2 percent above the current tax rate, but districts can file for exceptions from the state Department of Education to raise the millage rate above that. Southern is eligible because of special education and contributions to retirement funds.
However, the district does not need to use the exception if it's granted; the exception is viewed as an option by several board members.
The Act 1 exception doesn't sit well with Porter and other board members.
"We're not asking the state for money. We're asking the state for permission to raise taxes on others," Porter said.
Director Eric Stahley said the concept of an Act 1 exception is wrong and it might take more board members with the same mentality to convince the state.
That mentality has its drawbacks, Superintendent Charlie Reh said.
"If we don't do the exception, there will be tremendous cuts," he said.
He said the state has put the district in a situation where the only solution is to raise local taxes.
Director Timothy Vought argued it is the school board's duty to find the necessary funds to provide education to the students, but Stahley said their other job is to take care of taxpayers.
Directors Vought and Rick Steele made and seconded the motion to approve the preliminary budget. It passed 5-2 with Directors Stahley and Dawnmarie Buriak voting against it.
Directors Steele and Vought made and seconded the motion to advertise and authorize the filing of the Act 1 exception. It passed 5-2 with Directors Stahley and Buriak voting against it.
Buriak did not comment during the meeting, but said following adjournment she was opposed to the exception.
"I feel strongly against raising taxes. That's why I chose to run for election," she said.
Her negative vote does not imply that business manager Michael Sokoloski is inadequate in his job, she noted.
In other business, the board is discussing the possibility of switching health care insurance providers from Central Susquehanna Trust to BSI, Bethlem, for a savings of nearly $300,000 a year. On average, the district pays $150,000 per month for all employees.