PLUMSTED: Higher school taxes mulled

Budget spending is flat, but taxes would still rise

By Joanne Degnan, Managing Editor
 PLUMSTED — The Plumsted School District unveiled a 2012-13 budget that holds total operating expenses flat, but still carries a 4.6 percent increase in the tax rate due to higher debt service costs and the decline in the township’s ratable base.
   The $22.9 million budget introduced at the Feb. 29 Board of Education meeting proposes a tax rate of $1.053 per $100 in assessed valuation.
   For a home assessed at the new township average of $371,800 that means a school tax bill of $3,915 – an increase of about $175.
   Plumsted voters will not cast ballots on the budget in April because a new state law allows boards of education to have the final say on school budgets if the general fund tax levy increase is 2 percent or less.
   Even though the school tax rate is going up 4.6 percent, the tax levy – the total amount collected by taxation to fund operating costs in the general fund budget – is actually the same as it was last year: $9.6 million. Since the tax levy is flat and complies with the cap law, the school board can bypass voters and save the cost of holding a separate April election. (Board of Education members whose terms expire this year will run in the Nov. 6 general election instead of in April).
   School Business Administrator Sean Gately said Friday 1.5 percent of the total 4.6 percent tax rate increase is attributable to the $15,758,700 overall decline in Plumsted ratables last year. (Put another way, when the value of the ratable base drops, the tax rate needs to increase just to collect the same amount of money).
   A rise in debt service costs ($335,896) is responsible for the remaining 3.1 percent increase in the tax rate, Mr. Gately said. Debt service costs were $1.19 million in 2011-12 and will rise to $1.52 million in 2012-13.
   The state’s 2 percent cap on the increase in a school district’s general fund tax levy does not apply to debt service, which is spending that voters have previously authorized by referendum.
   In his PowerPoint presentation to the Board of Education last week, Mr. Gately said that the total $22,928,748 school budget proposed for 2012-13 spends $170,075 less than the current $23,098,823 budget.
   The state is increasing aid to Plumsted schools by 1.8 percent ($198,000) in 2012-13. However, the total $11.2 million in education aid for the next school year is still significantly less that the $11.75 million the state provided three years ago.
   The district is also receiving about $400,000 less from the federal government than in the current year’s budget.
   Enrollment declines at the elementary school will mean the loss of two full-time staff positions there in 2012-13. However, the district will see an overall net gain of the equivalent of 1.5 positions because of the need for basic skills teachers (the equivalent of 2.5 positions), a part-time Spanish teacher (a 0.5 position) and a part-time English as a second language teacher (a 0.5 position).
   Facility projects include the replacement of the elementary school roof that will be paid for in annual appropriations of $150,000 over the next five years.
   The Board of Education’s public hearing and final adoption vote on the budget is set for March 28 at 7:30 p.m. at New Egypt High School.