.

NPSD Sits On 14th Largest Savings in PA

School district expected to vote Thursday on 2012-13 budget that includes 2.79 percent tax hike

As the North Penn School District prepares to vote Thursday evening on a proposed $207.6 million budget that includes a 2.79 percent property tax increase, a new report by the PA Independent has ranked the district 14th in the state in terms of its uncommitted general fund balance, which stood at about $22.43 million last June 30, when the numbers were compiled. 

According to preliminary budget documents published by the school district, North Penn's general fund balance stood at $21.14 million near the end of 2011. Across Pennsylvania, the PA Independent estimates that school districts are sitting on about $3.2 billion in savings.

Declining property values have pinched school district finances across the country over the past few years. Even after expenses are cut, many districts are forced to choose between hiking property taxes and dipping into savings.

The Pennsylvania School Boards Association advises districts to only dip into cash reserves for one-time expenditures. Pulling more than 10 percent out of savings in a single calendar year has the potential to impact a school district's creditworthiness, making it more expensive for a district to borrow money through bond issues and other measures.

The 2.79 percent property tax increase would represent an additional $83 per year for homeowners in the district, according to a May 10 report in North Penn Life. According to North Penn Life, Robert Schoch, the district's director of business administration, said the general fund balance needed to be preserved as a "cushion" to maintain the district's bond rating.

About 70 percent of the state's 500 school districts are drawing on their general reserve funds in their preliminary budgets, according to the PA Independent. 

The North Penn School Board will meet Thursday evening at 7:30 p.m. at the Educational Service Center, 401 E. Hancock Street, Lansdale. School board meetings are open to the public.

David Powell (Editor) May 16, 2012 at 06:34 PM
Reader Anna Astler had this to say on our Facebook page: "We as tax payers can not take much more...most are at their limit and beyond....with little or no relief in sight.....food prices went up, gas prices went up....our pay didnt....but everyone wants more of it. How is ANYONE supposed to provide even a somewhat decent life for themselves and their families??? You have a savings...cut the tax payers a break for once." What do you think?

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »