North Hills School Board Considers Tax Increase to Balance 2012-13 Budget

Residents in the could see an increase in property taxes of 1.7 percent next year, if the proposed final budget for the 2012-13 school year is approved by the district's directors at their June 4 meeting.

The directors voted Monday to move the proposed budget forward for the final vote—even as they continued to debate whether the tax increase was necessary, with one board member saying by the end of the meeting that he may switch his yes vote to a no vote. 

"This is not a final budget," Director Ed Wielgus said. "It's a work in progress." 

The proposed $68,637,206 spending plan is a 2.9 percent increase over the current year’s budget—although the district's actual operating budget is proposed to be about $320,000 less than last year, according to David Hall, director of finance and operations. 

A mandated increase in retirement costs, an increase in medical insurance costs and debt service payments are contributing to the need for the millage increase to balance the budget, Hall said. 

The 0.35 mill increase would raise the rate from its current 20.91 mills to 21.26 mills and generate an additional $735,000 for the district.

It would cost the owner of a home assessed at $100,000 about $35 per year, said Tina Vojtko, spokeswoman for the district. 

The median home value in the North Hills is about $109,000, she said in a released statement. 

The proposed increase follows  Twenty-five teaching jobs were eliminated as part of that deal. 

Teachers that had been performed by part-time teaching assistants, such as hallway monitoring and lunch room superision. 

The concessions came last year in the wake of news that the district lost more than $1.7 million in state and federal funds—and officials said Monday they don't expect that funding to return any time soon, even as they predict significant increases in pension costs alone over the next five years. 

"We can't tax our way to solve the problem," Wielgus said before casting a vote in favor of the proposed budget. "At the local level, we need to deal with this. I don't know how we're going to deal with it." 

The board's newest elected member, Tom Baker, voted against the proposal.

"I'm just sticking with the pledge I made last year not to raise taxes," he said.

Instead, he suggested that the board balance the budget by eliminating the line item earmarking $756,589 for the future installation of a new air conditioning system at the junior high school.

Hall said the plan would work.

"If you took that out, you would not need a tax increase," he said. 

The district estimated two years ago that it would need about $6.2 million for the air conditioning project. Rather than roll that amount into a bond issued for other district renovation projects, the board decided to slowly build a fund each year to reach the amount needed. 

Director Lou Nudi said he believed the air conditioning project needed to remain a priority, saying it would be necessary to prevent respiratory problems in the growing number of students with asthma and also to protect investments in technology. 

Nudi also voted no on the proposed budget. He said he believed savings could be found through "personnel restructuring." 

He did not go into specifics. He said the board was aware of his feelings, based on discussions it has had in executive sessions.

Later in the meeting, after the vote, Wielgus said he was thinking more about Baker's suggestion and that he may be convinced to change his mind by the time the June meeting arrives. 

"At this point, I'm going to vote no on the budget," he said. 

The board also discussed Monday: 

* The elimination of the Forensics and Dance Teams from school activities due to lack of interest.

Eight students started out in the forensics program at the start of the year, but the number dwindled to two by the end, neither of whom choose to attend the national conference despite qualifying for it, according to a memo from Athletic and Activities Director Dan Cardone to Superintendent Pat Mannarino. 

The elimination of the Forensics team saves the district about $15,000 annually, according to the memo. 

Six of the eight members of the Dance Team are graduating and the two underclassmen are not planning on returning, Cardone said in separate memo. 

A budget savings was not immediately available Monday evening. 

* An increase of $0.25 in the price for lunch for elementary and secondary students. 

The , Hall said. 

Total revenues received per meal for full price meals must equal or exceed the total revenues received per meal for free and reduced meals, he said. 

The district receives $2.89 per lunch in reimbursement for the free and reduced meals. 

If approved by the board, prices will increase to $2.50 per lunch for elementary and secondary students. Additional increases are expected to follow next year.