With no discussion from its members and no debate from the public, the North Penn School Board voted 7-0 Tuesday night to adopt the 2022-23 proposed final $299 million budget, bringing a 3.4 percent increase closer to taxpayer’s wallets.
Board members Dr. Wanda Lewis-Campbell and Jonathan Kassa were absent from the meeting. Vice President Christian Fusco made the motion to adopt the proposed final budget and was seconded by Director Al Roesch.
The board will vote on the final budget next month.
“This is not a vote to approve the budget yet. That will not happen until June. I just want to make sure that is clear for the people watching,” said Fusco.
Along with the 3.4 percent increase, the proposed final budget comes with a $12 million deficit. According to The Reporter, last year, the board adopted a $291 million budget with a $5.8 million deficit.
The 3.4 percent increase equates to about a $139 increase in taxes for the average homeowner in the district. The increase will generate about $6.6 million in new revenue. Expenses are about $300 million, a 2.75 percent increase from the last fiscal year. By applying the $6.6 million in new tax revenue, plus $1.5 million in reserves and $2.9 million in “potential positive variances,” the deficit drops to around $1.4 million.
A 3.4 percent increase would also bring with it a homestead exemption of $139.
Last month, a look at the first draft of the preliminary budget showed a $15 million deficit and a projected increase of expenses over last year by 3.56 percent, or $10 million more, totaling out at $302 million. Revenues increased 0.35 percent over last year.
Items driving the expenditures increase include $3.6 million in salaries, $3.1 million in health care benefits, $1.8 million in retirement costs, $468,000 for 1,500 new Chromebooks, $459,000 in pharmaceutical benefits, $403,000 for utilities, and $312,000 for charter school tuition.
According to The Reporter, the district has spent $3.7 million of federal COVID stimulus funds to cover staff positions across the district: $1.08 million for eight full-time equivalent learning coaches, $674,000 for six virtual academy teachers, $655,000 for five school climate coordinators, $262,000 for two board certified behavior analysts, $160,000 for two full-time equivalent instructors for student assistance programs, and $131,000 for one full-time equivalent psychologist.
Skrocki said the psychologist position is only one that the district will “absorb in the general fund” and all other positions will would not need to be filled in subsequent years from the general fund revenue once stimulus spending has ended.
Last month, North Penn School District CFO Steve Skrocki reported that the district lost $55 million in assessed value, or an annual loss of $1.5 million, due to a settlement of a Montgomery Mall property tax assessment appeal. Skrocki said district real estate tax revenues dropped $991,000 due to the settlement.
Skrocki reported last month that there will be $620,000 in new interest earnings, up from the $380,000 figure from last year, as a result of an interest rate hike approved by the Federal Reserve.
The district cut down its original $15 million deficit through cost savings of $2.1 million by instituting a new one-month health care premium holiday plan, as well as cost savings due to 18 retirements and eight resignations, per the report.
Skrocki said that the district would not apply $52 million in district reserves to make up the deficit because it would harm the district’s AA1 bond rating.
See also:
North Penn Discusses Divesting from ‘Movie Lot’ Properties in Hatfield
North Penn Begins Talks on Financing for Repairs to High School, Possible Ninth Grade Center
Preliminary Draft of NPSD 2022-23 Budget Shows $15M Deficit, 3.5% Increase in Spending
North Penn Says Proposed Towamencin Sewer Sale Would Have Minimal Impact on District
Lansdale Council to Vote March 16 on NPSD's Health Clinic Development Plan
