Final KCSD Tax Hike at 1.96 percent for 2019-20
By Scott Johnson
MILL HALL – Clinton County property owners in the Keystone Central School District will see a tax hike of 1.96 percent after the school board passed the final $74.3 million budget for the 2019-20 school year Thursday night.
The vote was 6-2 with members Charlie Rosamilia and Debra Smith voting against. Member Wayne Koch was absent due to surgery he had earlier on Thursday. Both Smith and member Roger Elling participated via the telephone.
The increase is over a half-percentage point drop of the increase of 2.49 percent, which the board passed as part of a proposed 2019-20 budget last month. It is the same budget as Superintendent Jacquelyn Martin and the administration proposed at the board’s work session last week.
The increase would be 1.05 percent in Centre County and 0.37 percent in Potter County.
All board members, including Rosamilia and Smith, had praise for the job Martin and the administration have been doing since Martin officially took over as superintendent on Feb. 1. The district was facing an over $2 million shortfall at that time.
The biggest factor for the budget reduction was through the vote in late April from the Association of Clinton County Educators, the district’s teachers’ union, to agree to a three-year wage-freeze, which will save over $1 million, in addition to two attritions in the district’s staff and more efficiencies in the school day at the Central Mountain Middle School, increasing learning time, decreasing idle time and allowing for one position to be reduced by attrition.
“I want to thank the administration and the superintendent for bringing down the budget,” said member Elisabeth Lynch. “They should be commended.” Lynch added Koch told her he was going to postpone his surgery in order to be present at Thursday night’s meeting.
“I think that shows true service and dedication to the community,” she said.
“Thank you for the hard work,” said member Eric Probert. “I think they did a bang-up job.”
Rosamilia said that while he supports Martin, he had to vote against the budget because his platform has always been for stable taxes.
“When I very first started I was opposed to tax increases, especially with increased expenses and decreased (state and federal) funding,” he said.
Smith also applauded Martin and the administration how well they handled the budget problem.
“I believe next year will be less of a struggle and they’ll have more time to look at budget efficiencies,” she said.
“The board asked Miss Martin to bring down the budget and she did,” said member Tracy Smith.
“I think there is a light at the end of the tunnel and we are headed in the right direction,” said member Polly Donahay.
Board President Boise “Bo” Miller said that he agreed that this budget year has been a “very tough” one. “We cut over $2 million in the budget in a few months. I think we can do $2.7 million in a full year,” he said regarding the projected 2019-20 budget deficit. “I am willing to vote yes, so I don’t have to vote for an increase next year.
Lynch was the only member to switch their vote from last month’s preliminary budget as she voted against that document, but voted for the final budget.
According to information from Business Manager Susan Blesh, the millage rates, as proposed $74.3 million budget would be 13.52 in Clinton County, 46.24 in Centre County and 43.14 in Potter County. She added, the annual increase in Clinton County would be $27.69 for the median property owner next year, $51.12 in Centre County and $17.04 in Potter County.
The tax increase will result in an estimated $3,335 net total increase in net revenues over net expenditures next school year and would increase the general reserve fund that same amount to $9.72 million.
However, given a flat tax for the next five years would mean an estimated $2.66 million deficit in 2020-21, increasing steadily to $12.13 million in 2023-24.
Martin and Blesh addressed the district’s finances over the next five years with no tax increases starting in 2019-20. “This is our suggestion and the recommendation for next year,” Martin said before the final budget vote was taken. “We have to look at a small budget increase this year looking at the out-years.”
She noted the issues facing the school district are the same ones faced by all others around the state: pension costs, charter school, special education and health insurance. “The budget pressures we are facing are not unique with the other 499 districts in the state,” Martin said, adding 71.7 percent of school districts in the state have tax increases for the next school year.
She had several ideas for increased revenues, including a surplus sale of goods, recovery of delinquent taxes, long-term rental of facilities, online advertisements/sponsorships, grants and increased attendance rates.
Regarding reductions, Martin said the district will continue to look at many, including staffing, energy efficiency, transportation, facility space study, co-curricular reductions and contracted services. In that tone, Miller said at the end of the meeting, the board and administration continue to look at a facility/space study, which may include closing buildings.
