Tax increase expected in Charleroi Area School District budget

CHARLEROI – Taxpayers in Charleroi Area School District will likely be looking at a tax increase, although district officials Tuesday could not say exactly how large.
The district is proposing a budget of $23,550,000 for the 2017-18 school year, up $453,813 from last year, the board learned at a workshop meeting. The proposed millage rate will be set at 16.404, the maximum increase allowed under the state index, under new figures resulting from the Washington County property reassessment. business manager Crystal Zahand said the exact millage rate will not available until the final numbers from the reassessment are received from the Washington County tax assessment office, after June 1.
District Superintendent Edward Zelich said the district did a fantastic job of keeping to budget or under budget last year. Zelich said even little cuts, such as eliminating color copies, saved the district money. The district was able to cut $200,000 through employee attrition, but faces annual health insurance and pension cost increases. Health insurance costs will increase 10 percent at cost of $200,000. Pension costs are projected to increase by $381,000.
“These costs are not going away; they will keep increasing every year,” he said. Nearly 70 percent of the budget goes to salaries and benefits, he added.
School Director Thomas Nutting felt more expenditures could be cut by using Charleroi Education Foundation, which raises money to support the district. Items such as instruments, calculators and other small expenses can be submitted to the foundation for payment.
“We give a presentation about the foundation at the beginning of each year. They should be utilizing the foundation for these things, that is what it is for,” he said.
Zelich said the district will continue to face budget increases because of annual salary, health insurance and pension increases. He added the district has a young workforce and contractual salaries will be increasing in the next five years: 45 percent in 2017-2018; 54 percent 2018-2019; 61 percent 2019-2020 70 percent 2020-2021, and 83 percent in 2021-2022.
“We have to think outside of the box to have a balanced budget and an educational system that challenges our students,” Zelich said. He has been working toward sharing for services, such a the speech teacher shared with Bentworth School District.
School Director Ken Wiltz said the personnel will need to be trained not to use what has been budgeted, but only what they need. “Just because that money has been budgeted doesn’t mean we have to spend it all,” he said. He also said with the rising costs of health care, other plans may be looked at during negotiations.
Zelich commended the administration, the board, and teachers for working hard to have a balanced budget. “That means we have no deficit. Not all districts can say that.”
The board plans to adopt the preliminary budget at the regular board meeting at 7 p.m. May 23.