Tax Increase Doesn't Solve Budget Shortfall in Hatboro-Horsham
Hatboro-Horsham School District is narrowing the gap for its spending plan, which, earlier this year, had a $2.2 million deficit.
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With a 1.7 percent tax increase figured in, the Hatboro-Horsham School District is still staring down a nearly $850,000 budget gap for its roughly $90 million spending plan, officials said Monday night.
But, Bob Reichert, the district's director of business affairs, pointed out during Monday night's school board meeting that as of January, the deficit was $1.3 million with the same tax boost and $2.2 million without an increase.
"We're continuing to budget for using about $3 million of our fund balance," Reichert said.
To make additional cuts, district officials said staff reductions–preferably through attrition–would be necessary. Other cost-cutting measures being considered include charging students an activity fee for sports and band participation; scaling back bus routes for after-school activities at Keith Valley Middle School and the potential
Louis A. Polaneczky told Patch that the board was in a "discussion phase" regarding the student activity fee proposal and the potential for fewer school bus routes for extra-curricular activities. Both would be reviewed during the board's April 2 work session, he said.
All three proposed cuts combined would save the district just shy of $200,000.
The "big gorilla in the room," according to Reichert, is the Public School Employees' Retirement System, which is expected to cost the district more than $1 million more next year in higher contributions. Under the state's Act 1 index, the district's tax increase would not generate enough revenue to cover that expense in all its entirety, he said.
For this year, Reichert said the district intends to use $300,000 of its reserve to help with the pension fund.
More cuts are needed before the board can adopt a final budget. The board is required by law to adopt a balanced budget by June 30.
In This article
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Hatboro-Horsham School District
229 Meetinghouse Rd, Horsham, PA -
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Keith Valley Middle School
227 Meetinghouse Rd, Horsham, PA
Leigh
7:18 am on Wednesday, March 20, 2013
I understand tax increases - sometimes. What is a bitter pill for people to swallow is when there is a tax increase, but at the same time you are trying to take away services. I really think the school district should be taking a look at the declining performance of the district - particularly the high school. While people are getting angry about tax increases in places like Central Bucks, they can at least be comforted by the fact that the schools remain top notch. Here, this is not the case.
jenortip
9:09 am on Wednesday, March 20, 2013
I went to the HH website to look over the budget. A tab for "budget detail" directs you to a summary of the budget. It is difficult to find savings unless we have access to the budget in a detailed format. How much is the expenditures for items like health care.
Budget 2012-2013
REVENUE
Local
Real Estate Taxes, Current
$59,988,534
Interim Real Estate Taxes
$150,000
Real Estate Transfer Taxes
$600,000
Earned Income Tax
$4,357,477
Delinquent Taxes, All Levies
$790,000
Tuition
$223,391
Earnings from Investments
$103,096
Public Utility Tax
$89,000
Revenue from Student Activity
$20,000
Revenue from Public Schools
$662,453
Rental of School Property
$392,400
Other
$49,780
Total Local
$67,426,131
State
$14,343,853
Federal
$1,352,446
Other
$0
Beginning Fund Balance
$3,050,000
Total Revenue
$86,172,430
EXPENDITURES
Instruction
$52,055,501
Support Services for Instruction
$27,023,710
Operation of Non-Instructional Services
$1,492,281
Facilities Improvements
$3,000
Debt Service
$5,597,938
Total Expenditures
$86,172,430
Tara
9:51 am on Wednesday, March 20, 2013
What happened to the studies to close one school that would not put the rest of district over ratio but would save over $700,000/yr???? Study already done, and paid for to be completed, then we ignored it?
Leigh
10:25 am on Wednesday, March 20, 2013
I know that enrollment has been declining - of course, this has occurred in other districts, they close schools and then they have too many students! However, is it possible to close a school at the elementary level and have those students go to other neighborhood schools? If it is possible without impacting education standards and can save $700,000, how is this option not being put out there?
jenortip
11:05 am on Wednesday, March 20, 2013
Look at the expenditures in the budget summary. To balance a budget, you need to bend the inclining curve that represents the largest portions of the expenditures.
Instruction $52,055,501
Support Services for Instruction $27,023,710
Other $10,000,000.
The largest portion is instruction and support services. Approximately $80 million. How about addressing support services? Other school districts have addressed support services by outsourcing.
One local company picked by a quick search on Google....
"******"
As an award-winning leader, currently partnering with more than 500 school districts nationwide, "******" offers school districts a single source for food service management and planning, plant and operations management, custodial, and maintenance services.
School districts partnering with "******" consistently experience greater student participation in school lunch programs, improved quality and service, boost student satisfaction and achieve cost reductions.
The key word is cost reductions.
Maureen
1:34 am on Thursday, March 21, 2013
Lower energy costs in the school district!
There is wasteful spending in the district that should be addressed..some examples are the lights left on all night at Crooked Billet School district why are the tax payers paying for lights on all night? I'm not sure if the other schools within the district are doing the same thing or not.
Staff has access to coffee within the district..teachers that bring in their own appliances such as coffee makers or space heaters add to the energy costs of the district.
What is being done to lower these costs in order to have money for teaching and programs?