Salaries & benefits weigh on DV budget

DAVID HULSE
Posted 5/3/17

WESTFALL, PA — Lacking unanticipated revenues or program cuts, property taxpayers in the Delaware Valley Schools District may be looking at a 3.57 mill (3.3%) increase in the school portion of …

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Salaries & benefits weigh on DV budget

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WESTFALL, PA — Lacking unanticipated revenues or program cuts, property taxpayers in the Delaware Valley Schools District may be looking at a 3.57 mill (3.3%) increase in the school portion of this year’s tax bill.

Superintendent Dr. John Bell and business manager Bill Hessling presented a “first look” at the 2017-18 budget at the school board’s April 20 meeting. A final budget must be approved by the June 30 end of the state’s fiscal year.

They led off with personnel costs, which make up 79.2% of the budget. The district sent out W-2 forms to 894 full- and part-time workers last year. Contracted salary obligations will increase spending by $1.1 million in 2017-18.

DV’s budget benefitted by 15 senior professional staff retirements this year, while four new staff were hired. The new positions include an assistant director for special education, which will require $119,000 in salary and benefits. Bell said that the district has fewer than 20 employees earning over $100,000 annually compared to one in four educators in neighboring Orange and Sullivan counties.

Retirement costs will also increase. According projected rates in the current budget, the district’s payment rate to the state retirement system increases by just under 2% in the coming year, amounting to just under $5.8 million.

As is usually the case, revenue projections included a number of “gut feelings” about state and federal support. Bell declined a request for printed copy of his PowerPoint presentation, saying it was a draft that would be published when finalized.

At 3.3%, the tax increase is at the maximum allowable level; several concessions were made to get to that level. Some $253,000 was withdrawn from the Employee Benefit Trust of Eastern PA, prior budget provisions were retained to handle debt service for the new Career Technology construction, a $564,000 textbook purchase was made with this year’s unexpended balance, and the district is budgeting on the belief that Congress will renew “Impact Aid,” which was not included in President Trump’s proposed budget.

The draft called for total appropriations of $81,343,260 and a new tax rate of 111.76 mills. DV had no increase in millage last year and none in six of nine budgets since 2008-09, with an average increase of 2.37 mills in the three budgets prior to last year. Despite the economic downturn of that period, DV did not lay off any employees.

DV’s spending per student, at $16,215, remains the lowest among the 13 districts in Intermediate Unit 20. The district currently has 4,622 students. Some 4,593 are projected in the coming year. The district’s peak enrollment in 2006-07 was 5,740.

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