However, despite its
historic implications, the budget was adopted without comment by any of the
nine school board members who voted for it, or the administration that crafted
the spending plan.
Although the final
budget does increase spending by $2.4 million — or 4.2 percent — savings in
health care costs, a $100,000 increase in earned income tax revenue, a $2.3
million increase in state revenues and $130,000 withdrawal from reserves all
helped to balance the budget without a tax hike.
The budget’s adoption
means the millage rate of 39.2522, one of the highest in Montgomery County,
will remain the same for the 2016-17 school year.
With the average
residential property assessment of $79,500, that means a tax bill for the
average homeowner will remain $3,120.55.
And for the 4,195
registered homesteads in the borough, state gambling revenues will result in a
tax reduction of $377.64.
Despite successfully
holding the line on taxes for two years in a row, Pottstown continues to face
structural budget challenges.
Primary among these is
the ever-falling assessed value of property in the borough.
In the past year, the
borough’s total property assessment dropped by $5,566,510, according to
business manager Linda Adams.
And because Pennsylvania
schools lean so heavily on property tax revenue, that lowered assessment means
Business Manager Linda Adams started the budget process with $392,510 less
revenue than the year before.
Fortunately, a $403,608
grant from the Kellogg Foundation offsets that loss and helps pay for the PEAK
and Pre-K Counts efforts in town.
In fact, more than 9
percent of the total budget — $5.4 million — is funded through grants.
Also worrisome is the
fact that Gov. Tom Wolf’s proposed budget cuts special education funding by 2.7
percent — this on the heels of eight straight years of flat funding — which the
district can hardly afford given its high special education population.
According to the budget
made available at Monday’s meeting, salaries — which comprise 41 percent of the
budget — increased by less than 2 percent, although administrative salaries
jumped by 9.3 percent and professional education salaries only increased by
just over half a percent.
Benefits — which make up
another 25 percent of the budget — increased by less than 1 percent.
There is no increase in
the half-million-dollar athletic budget.