NEW BETHLEHEM, Pa. (RVO) by John Gerow – Facing increasing costs and unbalanced budgets extending out into the future, and a Board of Elections deadline of March 22, the Directors of the Redbank Valley School District voted Wednesday evening to go to the voters in the May primary elections for the first major tax increase in many years.  On a vote of 7 to 2 the Directors approved the motion that will put the tax increase question on the ballot.

Pennsylvania law limits how much local school boards can increase taxes without voter approval.  Under Act 1, Redbank Valley School District is limited to about a 3.5% revenue increase without voter approval.  This tax increase limit is designed to buffer the tax payers from constant tax increases.  However, the revenue increase limit also restricts how quickly school boards can react to increasing costs.

According to Superintendent of Schools, Mike Drzewiecki, Act 1 defines the protocols that school districts must follow to set and raise school taxes.  Under the Act, the Commonwealth limits school taxes to a formula based upon the rate of the inflation.  Redbank Valley is limited to a 3.5% revenue increase annually by this formula.  School districts can apply for exemptions to this limit if their special education and pension needs are excessive.  RVSD could be approved for an additional approximately 3.5% increase under the exemption.  These funds would come from the State not from increased taxes.  The third method of tax increase is for the school district to go to the voters and ask for more revenue.  The voters in the Redbank district will be asked to approve a 13% increase in school taxes.

The drawback to going to the voters is that if the voters reject the tax increase, then the school board is limited by Act 1 to balancing their budget through spending cuts.  The referendum is a two edged sword; raising revenues beyond the limits of Act 1, but it may also force the school board into draconian spending cuts that no one will be happy with.

For school year 2018 – 2019 the Act 1 tax increase would generate approximately $83,000 for the District.  If the District is approved for exemptions, the result would be an additional $80,000 in state aid.  The tax increase proposed in the referendum would generate more than $300,000 in revenue.

Directors raised good questions during their discussion.  Dee Bell asked if the tax increase would be for one year only.  The answers that he got were a bit fuzzy, but the tax increase would be permanent and would be the baseline for future Act 1 increases.

Ann Kopnitsky, attending by phone, asked for clarification on what options will be left for the Board if the referendum fails.  The wording of the referendum seems to suggest that cost cutting is the only option open – Chad Shaffer suggested that money from the Fund Balance could also be used and asked Mr.  Drzewiecki to seek clarification.  When queried about the 13% increase, Drzewiecki told the Board that the 13% proposed increase was based on an increase in Special Education and pension and retirement increases expected in 2018-2019 over fiscal year 2017-2018.

Director Bill Reddinger questioned the accuracy and integrity of the 5 year budget that the Administration has prepared for the Board to use in decision making.  Mr Drzewiecki told Mr. Reddinger that the budget was as sound as they could make it and that the finance committee would be meeting soon to firm up the spending plan.

ABOUT:
Redbank Valley School District provides education services for the 165 square mile area of New Bethlehem and Hawthorn boroughs, and the townships of Mahoning, Madison, Porter, and Redbank of both Clarion and Armstrong counties.

MEETINGS:
The Redbank Valley School Board meetings the first Monday of every month at 7pm at the High School Library.

CONTACT:
For more information about the Redbank Valley School District, please call 814.275.2426 or visit RedbankValley.org/pg/biz/redbank-valley-school-district