Belle Vernon OKs preliminary budget with tax increase

Belle Vernon School Board passed a preliminary budget Monday that calls for a tax increase.
The board passed the proposed budget for the 2017-2018 school year by a 6-2 vote. With President Joe Grata, Vice President Lou Rood, Secretary Daniel Sepesky and directors Aaron J. Bialon, John M. Nusser Jr., Joel Whiteko voting yes and Ronald Sotta and Gloria Yuschak voting against.
The $37,206,979 budget is up from the $35,942,109 spending plan for 2016-2017, which includes a millage rate of 81.64 mills, a 2.4-mill increase for Westmoreland County with a rate of 19.53 mils, and a .68-mill increase for Fayette County. Business manager James Dzurica said the budget includes a maximum increase of $688,000 in real estate taxes.
Dzurica said the budget includes an increase of $553,900 in teacher salaries, which officials were able to reduce from the original projections once three early teacher retirements were factored in. He said the budget also includes a $600,379 increase in retirement contributions, which are increasing from 29.20 percent to 32.57 percent, and a $134,048 increase in health care costs.
Resident John Habel of Washington Township asked whether the three teachers who are retiring early will be replaced. Superintendent James Wilkinson said they will not be replaced because the district is still short on money. Wilkinson said the district will investigate curtailing some programs, which could potentially lead to the furlough of teachers.
Wilkinson said district officials decided not to ask the state for an exception to raise taxes above the base index allowed. Wilkinson said this budget is simply preliminary and there is still time to tweak it before the final budget is adopted June 26. “This is an ongoing process,” Grata said. He said the budget numbers change daily.
Yuschak said she voted against the preliminary budget for several reasons. “I prefer a method where you start with the prior year’s numbers and try to keep it there. Do everything in your control to do that,” Yuschak said. She said BVA leaders have to start looking at what is affordable for the district and to acquire items that meet their basic needs, such as dressing room facilities, rather than worrying about whether or not they are similar to what a neighboring district has. She referenced a track project that was voted down in January and is now on hold because of the budgetary issues.
“It’s good to have big dreams, we all have them, but it is more important to ensure that the taxpayers for years to come are not saddled with paying for these expensive ideas and projects,” Yuschak said. She said there are many options to fix the financial picture. She said they need to meet with Superintendent Dr. John Wilkinson, like they did last year, and work together on this budget.
Yuschak said the answer should not be to just always raise taxes to the maximum. “Every time the school district raises taxes that tax increase never gets taken away,” Yuschak said.
“We looked at ways of improving the facilities. It has been brought up to me by numerous people in the district,” Rood said. He said the initial proposal that came back to the board not only included adding a track, but also a field house, an addition to the high school and other items not originally requested. Rood said this led to rejection of the $19 million proposal in January.
“We understand that we cannot afford it,” Rood said.
Rood said he understands people don’t want to see taxes go up, but there are also people with children in the district who want to have facilities improved and have the best possible education for their kids. “It’s a difficult situation that we are in. We only have so much control over it. A lot of the arguments that people bring to us need to be taken to the state legislators,” Rood said.
Rood said the major issue is property tax reform. “No matter what we do, we are affecting peoples’ lives. We are affecting your lives if we have to raise the taxes. We are affecting teachers’ lives if we have to furlough them. We are affecting students’ lives if they are put into bigger classrooms or if programs they were counting on having aren’t there anymore,” Rood said.
Dan Kovatch of Rostraver Township addressed the board with his concern Belle Vernon will lose its competitive edge among other districts. He said some of the facility improvements that are lacking in the district, such as a track, are embarrassing to some parents. Wilkinson noted they are the only school their size in the state that does not have a track. Kovatch said if the district doesn’t improve its facilities, young families will not want to locate within it.
Grata said the door is not closed on continuing to make improvements within the district. He said the district has spent approximately $15 million over the last six years to update and improve buildings.
Nusser said the district is lacking amenities “You have to give a product,” he said. “At the end of the day, the school district is a business that needs to supply a product to their customer.”
The board voted to approve a tax anticipation notice for $4.1 million at an approximate cost of $30,000 for the 2017-2018 school year. Wilkinson said this will be used as a line of credit because the fund balance is depleted. He said funds are needed in order to continue to run the school throughout the summer, until tax revenue begins to come in.