Sodaton Area School staff condemn the impact of unfunded obligations on budget

With just over a month before the final vote on the Franconia — Sodaton Area Board of Education for the 2022-2023 budget, district officials have reiterated their unfunded obligations as one of the factors driving local taxes.

Information included in the budget update for Michael Taylor Business Affairs Director at the SASB Finance Committee meeting on May 11 includes employee pension funds, special education funds, and charter school classes from 2010-2011 to 2018. Included was a graph showing the increase in fees and the corresponding state reimbursement-School 2019.

“The mandated costs have increased by $ 20,774,000, but the income has increased by only $ 7,900,000, which clearly puts pressure on our budget and everyone’s budget,” Taylor said. .. “The mandated costs are growing much faster than state subsidies.”

“This is a simple calculation and you don’t have to be a business expert to see it,” said Ken Keith, president of the board, later referring to the graph.

“It’s a 7-day-week disaster recipe. The problem that confuses me every year is that it gets worse every year, yet state and federal people do nothing, so I’m going to ride my soap box No, but at some point it’s going to go down, it has to end. This is either the system exploding and breaking, or the taxpayers being crushed in the future, “he said.

“It’s hard to see,” Keith said. “But we need to be fully aware that the federal and state governments are preparing education for major failures.”

The district’s proposed budget raises property taxes by 3.4%. This is the maximum amount allowed this year under the state cap. District officials, however, say the final tax increase is expected to be less.

One of the remaining big questions to be answered is the amount of state funding that will be received, Taylor said. The state budget, which has not yet been determined, is expected to increase education funding, but the increase is not yet known.

Last year’s tax increase in the Sodaton area was 0.87%, the current district property tax rate is 30.5837 mils, and homeowner property taxes are estimated at an average of $ 176,000 in the district. Each factory is equivalent to $ 1 property tax for every $ 1,000 of valued assets.

The district has raised less than 1 percent in five of the last seven years. The two years of growth above 1% were followed by a 2.4% increase in 2018-2019, followed by a 1.45% increase in 2019-2020.

The latest version of the proposed budget presented at the May 11 meeting will generate income with a 3.4% tax increase at $ 140,350,801. Expenses are budgeted at $ 142,813,202. The additional funding needed to balance the budget comes from the $ 11,441,759 funding balance that the district is expected to have at the end of this school year. Predictions of the impact of a 2, 1, or 0 percent tax increase on the cash balance were also shown.

Revenues and expenses may be subject to additional changes prior to the final budget vote, according to district officials. Voting is scheduled for Thursday, June 23, at 7:00 pm on the Board of Directors.

Sodaton Area School staff condemn the impact of unfunded obligations on budget

Source link Sodaton Area School staff condemn the impact of unfunded obligations on budget

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