Centennial Searches for $1.7 Million

With the state’s deadline for budget submission quickly approaching, the Finance Committee of the Centennial School Board has called a special meeting to discuss the options for making the numbers work.

When the , administrators were proposing a substantial tax hike, approximately 7 mills, in an attempt to balance a rather large deficit. This initial proposal was drafted in hopes of a favorable consideration regarding funding from the state.

But this favorable outlook for funding did not materialize, and board members have said the proposal by Governor Corbett stands to move approximately 2.1 million in revenues away from the district’s 2011-2012 budget.

Currently, Pennsylvania’s Act 1 limits the rate to which school districts can impose a tax increase without calling for a voter referendum. This year, Centennial’s limit under Act 1, including an added exception for grandfathered debt, is 5.04 mills.

In an effort to reach a number within the index, . This version included deeper cuts to employee benefits as well as a $41,000 decrease in funding for support staff. These cuts were in addition to a 3.2% reduction across the board for instructional staff.

But even with these adjustments, the budget as proposed would still require taxes to be raised 5.03 mills, just shy of the 5.04 limit imposed by Act 1. And this budget only bridged the district’s deficit, it does not account for the added loss of state revenue.

“The net impact of all of those changes is we are looking for 1.7 million dollars,” said Business Administrator Christopher Berdnick at last week’s finance committee meeting.

School Board President Andrew Pollock said administrators and the school board are going to do the best they can to find these funds without causing an undue burden to the taxpayers.

“We are looking to get the number down around 4.7 mills,” he said.

Exactly how they are going to do this, Pollock said he is unsure. He said he is hopeful they can find ways without having to make cuts to programs for students or changing the parameters for class size.

“We plan to discuss all of the options Monday night,” he said.

The average home in Centennial School District is assessed at $26,400.  A mill is equal to one dollar of tax on every $1,000 of assessed property value.

An increase of 5.03 mills means the average homeowner would pay $132 over their current tax bill of $2,865, or $2,997; an increase of 4.7 mills would mean the average homeowner would pay approximately $2,989 in real estate taxes.

The special meeting of the Centennial School Board Finance Committee will be held Monday, April 25, at 7 p.m. in the boardroom of the administration building, 433 Centennial Road, Warminster. The meeting will also be broadcast live on the district’s cable channel as well as streamed live over the Internet via the district’s website.