Scranton residents could be looking at a 1.35 percent increase in school taxes next year.
With the passage of the 2013 budget due by the end of the month, school board members and administrators are still working to cut expenses and lower the projected tax increase, directors said during their budget committee meeting Monday night. A 1.35 percent tax hike is an increase of 1.5 mills. A mill is a $1 tax for every $1,000 in assessed property value, and 1.5 mills is a $15-a-year increase on a property assessed at $10,000.
The original deficit of $2.8 million was trimmed to $1.7 million, after additional revenue sources were found for the $120.9 million budget. Officials were able to add revenue due to projected increases in business privilege taxes, pupil transportation and Race to the Top federal grants.
Board President Sean O'Shea suggested moving $500,000 from the workers' compensation trust to the 2013 budget, leaving the trust with about $400,000 - the amount the state recommends, he said.
A 1.5-mill tax increase generates $495,000, so additional cuts must be made or revenue found. A lower-than-expected interest rate for the district's 2013 tax anticipation note and confirmation from Berkheimer Tax Administrator regarding funding due from Centax Group will also affect the budget. And officials are looking at taking money set aside for capital improvement projects and using it for debt reduction.
Director Bob Sheridan said he will vote against any tax increase. "There are still more things that can be shaved from this budget," he said. "The citizens deserve a little bit of a break this year."
In other business, from a special meeting held prior to the committee meeting:
- Directors authorized the application to the U.S. secretary of education to obtain the Serrenti Army Reserve Center site. Both the district and Howard Gardner Multiple Intelligence Charter School want the surplus property, which is adjacent to Nay Aug Park. The district wants to build a new school for John Audubon and William Prescott elementary school students.
- A traffic study by Bogart Engineering for Isaac Tripp, John G. Whittier and Frances Willard elementary schools was authorized, at a cost of $12,600.
- Additional work was approved for the West Scranton Intermediate School gym-stabilization project. The gym, which is built on ash, will require more underground grout work for repairs. Mr. Sheridan, chairman of the building and grounds committee, said a price tag for the additional work, beyond the $900,000 estimate for the total project, is not yet known.
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