Predicted Riverview Tax Hike Subject to Change

Riverview School Board passed a preliminary budget with a proposed .65-mill tax increase, with a big stress on the word "preliminary."

The primitive form of the budget for Riverview and other districts statewide hinges on the presentation of Gov. Tom Corbett's budget in March, and how much money the new administration will afford to school districts.

The board will vote on a final budget this June, before which a slew of changes within Riverview and the state budget could change figures, said Frank Thompson, Riverview business manager.

Costs for special education, transportation cyber-charter schools, utilities, employee salaries and health care costs continue to increase, while Riverview's revenues remain constant, he said.

Riverview spends most of its money on personnel — from 75 to 85 percent, Thompson said.

Under state law, school districts cannot reduce faculty due to financial constraints.

The preliminary budget doesn't reflect potential personnel changes such as retirements and enrollment fluctuations, which could change costs between now and the end of the school year, Thompson said.

Teachers are not required to announce their retirement to the school board until April 1, and school board members won't know how many kindergarten teachers are necessary until they receive enrollment numbers in March, Thompson said.

"It's complicated because you're trying to calculate what is going to happen six months from now," he said.

Under Pennsylvania's Act 1 of 2006, the state sets a maximum amount that districts can raise taxes. Riverview's preliminary budget calls for a .65-mill increase, but the maximum currently is set at .43.

Riverview will apply for some of the 10 allowed exceptions by the Pennsylvania Department of Education which allow schools to raise taxes over the state index by taking into account things such as construction, special education costs and debt.

Since 2006, the state has decided on yearly tax caps based on a formula that considers the statewide average weekly wage, which is estimated at $855 for the 2011-12 school year, and employment cost changes.

While the index has been set, school districts have no idea what kind of money they will receive from the state — and education sources are predicting less than last year, Thompson said.

Thompson prepared Riverview's budget in 2002 when former democratic governor Ed Rendell took the reigns from republican Mark Schweiker, but the stability of the economy kept the administration change from becoming an issue, he said.

Educators basically are boxed in right now by the unknown, Thompson said.

"They give us an index to live with but then they can take away revenue at the same time," he said, expressing what he said is the widespread Catch-22 that school districts are facing.

"If they reduce [funding], the only other avenue is taxes, but we're limited in how much we can raise them."

If the .65-mill increase were to stick, it would add an additional $65 per year in taxes for a $100,000 income family, or about $33 for a $50,000 income family.

The real estate taxes are estimated to be 24.70 mills with the tax hike — but Thompson stressed that the numbers are subject to change before June.

School board members and administrators haven't yet examined specific items to cut or save until Corbett's March 8 budget announcement gives them a better idea of what to expect, Thompson said.

Riverview has raised taxes every year for the last several years, except for the 2008-09 school year in which taxes were decreased by .25 mills.