Pending bill could put school tax hikes in hands of voters
McMURRAY – As contract negotiations between the Peters Township School District and the union representing the striking 285 teachers drag on with no apparent resolution in sight, a bill pending in the state Senate has the potential of shifting their salary demands onto the backs of township taxpayers.
Senate Bill 909 – dubbed the Taxpayer Empowerment and Accountability Act – would require school districts to put any proposed real estate tax increases up for a vote by referendum. In Peters’ case, if the district is required to raise taxes to give teachers the salary increases the union is demanding, then it could put the matter up for a vote and let the public decide. Presently, school boards can vote to raise taxes up to an index set by the state, or seek an exemption for a bigger increase.
“The voters could control the destiny,” said Joe Pittman, chief of staff for the bill’s co-sponsor, state Sen. Don White, R-Indiana. White introduced the legislation this summer. The bill was approved by the Senate Finance Committee and is awaiting action by the full Senate.
Already, more than 75 percent of Peters Township School District’s revenue comes from township taxpayers. State funding accounts for nearly 24 percent of overall district revenue, while federal monies account for less than 1 percent, according to figures provided by the district.
The district adopted its current $59.4 million budget in June, which included a 3.608-mill increase, and brought the current real estate millage in Peters to 110.75 mills. Peters was granted an exception from the state Department of Education to raise taxes above the state mandated cap of 2.03 mills.
The district said the state has calculated the base index for the 2016-17 school year at 2.4 percent, which equates to an increase of 2.658 mills without the district seeking an exemption from the state Department of Education.
“In light of S.B. 909, we are running multiple financial scenarios to ensure that we are able to bring forward a budget that projects programming for our children while maintaining financial sustainability for the district,” Superintendent Jeannine French said.
The union is asking for annual raises of $2,300 for teachers during the life of the contract. The district, meanwhile, has countered with $200 to $500 annual raises, depending on where the teacher is on the salary tier. The average teacher’s salary in Peters is in excess of $70,000, the district said.
In a 2016-17 budget projection, the district said annual teacher salary increases are expected to cost $370,000. Also, health care costs are anticipated to rise 8 percent.
The district has said White’s bill adds a new level of complexity with its negotiations and it won’t agree to a contract that is beyond its financial means.
But, Pittman said there are always a lot of unknowns when making school district budget projections.
“Future taxes would be in the hands of the electorates,” Pittman said. “Taxpayer protection would be part of it.”
Teachers, who went on strike Oct. 28, will return to the classroom on Nov. 27. By state law, the district must get in 180 days of instruction by June 15.
If a second strike occurs, possibly in the spring, the last day of school may be pushed back to June 30. A second strike may not occur until both sides have gone to nonbinding final best offer and fact-finding, according to state Act 88, which governs how teacher’s strikes and contract negotiations are handled.