Proposed State Budget a Major Issue For Phoenixville School Board

Calling the potential situation “bleak” and “catastrophic,” Phoenixville Area School Board members and administrators stare down a potential $2.3 million shortfall if the proposed state budget goes through as outlined.

That's in addition to $1.75 million in reductions already made and a potential tax increase of 4.43 percent in the district's preliminary budget.

Pennsylvania Governor Tom Corbett's proposed state budget was a major topic of discussion at the Phoenixville Area School District board workshop meeting Thursday.

The school district had presented a preliminary budget of $78 million in January with a tax rate of 4.43 percent. The proposed budget included items such as building budgets being cut 15 percent, no salary increases and no new positions being added. To get the preliminary budget numbers, the district included reductions of $1.75 million and projected flat state revenue.

However, Gov. Corbett's proposed budget leaves the school district facing an additional budget gap of $2,309,861. The potential cuts affect the following subsidies and grants:

• $430,851 cut from the basic education subsidy
• $110,180 cut from block grants
• $1,239,436 cut from the charter school subsidy
• $519,226 cut from the Social Security subsidy
• $9,328 cut from the dual enrollment subsidy

Dr. Alan Fegley, superintendent, stated that the additional $2.3 million will have to be cut from the proposed district budget in order to keep the tax rate at 4.43 percent. The Act 1 index for the district is 1.4 percent for the 2011-2012 school year.

"It's a bleak picture, much bleaker than I thought it would be," Fegley said.

Fegley also stated that if no other cuts can be found, the school district is looking at a minimum of 30 jobs that will have to be cut. He encouraged citizens to attend budget hearings and for his part will continue to emphasize that PASD does not have the commercial base that some other local school districts do. The bulk of Phoenixville's budget money comes from the taxpayers.

"This is a massive cut, this will hurt our district and everybody else's district,” Board President Paul Slaninka said. “It's catastrophic, as far as I'm concerned."

Recently, State Sen. Andy Dinniman (D-Chester/Montgomery) stated in a press release that Gov. Corbett's budget applies "tremendous pressure to raise local school and county property taxes" and that it will be "disastrous for our Commonwealth's public schools … [While Gov. Corbett] can wave the flag and say, 'We're not raising taxes,' he has written a script that will mean significant local property tax increases and much heavier burden on local taxpayers."

Rep. Warren Kampf, in his own press release, said, "This is a tough but honest budget. It recognizes the taxes cannot be raised without pulling money from the private sector and hobbling an economy only now showing some signs of life. It's now up to the legislature to face this necessary austerity as we analyze what the governor has given us. ”

The next meeting where the budget will be discussed will be March 17 with additional public meetings on March 21 and 31. For a full schedule of the public budget meetings, check out the PASD Web site. You can also find information and the presentation on the proposed state budget cuts and how they may affect the district on the business office page.

In other district business, Susan Mostek from the Phoenixville Public Library told the board that the library is very close to being able to do its renovations. The library received a $450,000 Redevelopment Assistance Capital Program (RACP) grant and was required to raise matching funds of $573,000.

They have collected all but $52,000 of that $573,000 and at next week's meeting will have two items for the school board to vote on that are conditions of the RACP grant.

The board also announced three state bills being considered that could affect the school district:

• House Bill 137, which would prevent schools from opening before Labor Day unless they are on a year-round schedule, or have construction delays
• House Bill 273, which would allow senior citizens to obtain reduction of their school taxes by volunteering in their local schools
• House Bill 855, which would allow districts to furlough professional employees

The board also approved five proposals regarding the completion of the district administration office construction. The new office will be finished soon and the staff will move in June.

The next board meeting will be on March 17 in the high school cafeteria.