THROOP - School board members mulled an impending $1 million deficit and a tax increase of up to 5.3 mills for the 2013-14 Mid Valley budget at a work session Wednesday.
A presentation from business manager Joseph Caputo showed an anticipated $1,093,625 deficit in the upcoming budget. Though no decisions have been made, the board has some options to make up that shortfall.
Mid Valley was approved for two Act 1 exemptions, for Public School Education Retirement Systems and special education, allowing the district to increase taxes beyond the state limit. The board can raise taxes by up to 5.3 mills, which would generate about $628,291. The increase equates to a $53 increase for the average household.
Mr. Caputo also projected a $200,000 remaining general fund balance at the conclusion of the current school year.
If the maximum tax increase and fund balance are applied to the budget, there will be a remaining deficit of $265,334.
Last year, the board faced a more than $1.6 million deficit, ultimately passing a budget without a tax increase and drawing $200,000 from the reserve fund.
At Wednesday's meeting, the board discussed the trends of tax collection over the past several years. The budget projections Mr. Caputo presented were based on a 91 percent collection rate, or the amount of the current year's taxes that are paid on time.
The district has averaged 93 percent collection in recent years. By increasing the projections to match that average, the district could move closer to eliminating the remaining deficit.
The board will hold a final vote on the budget in June, and Mr. Caputo said though no deficit is ideal, the district isn't in a bad situation.
Contact the writer: rbrown@timesshamrock.com, @rbrownTT on Twitter