I caught the last part of the school board meeting last night, only to hear Timmy say that early budget estimates indicate that:
Revenues are $85.7 million
Expenditures are $88.3 million
The difference is a shortfall of $2.6 million, or 1.02 mills or the equivalent to 26 teachers' salaries. Here it comes, Boys and Girls. Not like we didn't warn you. The same group who called us fear mongers is now touting toxic turf.
Lebo schools face $2.6 million budget shortfall in 2015
Update March 13, 2014 6:41 AM I think Jan Klein should take one for the team and retire. Timmy should take a pay cut. Last year's student parking fee increase subsidized bonuses. Mt. Lebanon shortfall $2.6
46 comments:
What did the "fake budget" for 2014-15 submitted to PDE in January to supposedly justify waivers or exemptions indicate the shortfall would be ?
What have Steinhauer and staff done since then to reduce general fund operating costs, like specific cost cutting actions ?
They took bonuses and lucrative raises that have an impact on those pension costs.
Don't forget the teachers grievance.
To be fair, they took those bonuses prior to this budget announcement, though unfortunately they ignored an forewarnings by an ex-director that this day was coming.
Note to School Board:
Here is an easy million for your use…
The District's estimated actual expenses for the current year (13-14) were projected on January 15, 2014 at $1,136,776 LESS than budget - - - even after cutting all the fat last year.
Build the budget for next year (14-15) on actual current year expenses, using a Zero Based Budgeting approach and you will be in good shape (although still likely requiring a modest millage increase).
It's crazy. You know there were two directors that saw this coming.
Especially this comment:
Mt. Lebanon schools also have yet to receive any reimbursement from the state for the bond issues for its high school renovation project. Director of fiscal services Jan Klein said the district’s request for reimbursement on the first bond issue is currently waiting in a queue with about 350 other projects. A similar request for the second bond issue will join this queue if approved at the March 17 school board meeting. Klein said it could be several years before the district receives any of this money.
USC freezes administrative salaries. MTL gives bonuses and massive raises.
Why does Klein plan on getting reimbursement? It ain't coming back with Corbett being re-elected.
Way to go Lebo!
The construction update and school board meeting podcasts are up. Listen to the last part of the school board meeting. Not sure who said that the budget shortfall is like 26 teachers. Someone said, like an elementary school. Then you can hear, "MORE than an elementary school."
I am not one to say, "I told you so." But guess what? WE TOLD YOU SO! School board director James Fraasch told you. School board director Mark Hart told you. Superintendent John Allison told you. Almost 4,000 people told you. But the fancy sports complex, complete with the $74,000 trophy case, was all for that 21st century education. In two years, we'll have a turfed Rock Pile. And now you know why nobody wanted to run for school board.
Elaine
Equivalent to 26 Mt Lebanon teachers, but how many of them can teach?
Jan Klein said 26 teachers, and MORE than an elementary school.
Not sure who said, "like an elementary school."
Thanks for letting me know. Maybe Jan Klein can explain to the 26 teachers why she deserved the bonuses and increases.
Elaine
Those 26 teachers can look back and say we should have spoken up during the high school renovation meetings.
Too bad, welcome to the real world.
http://thejournal.com/articles/2014/03/10/national-school-boards-honors-ed-tech-innovators.aspx?m=1
Aw, too bad USC makes the list but Lebo doesn't. Unfortunately, our board is still trying to figure out that an old technology like boilers need water feeds and you can't run ductwork thru an elevator shaft.
The problem isn't the deficit. No, no, no! There's no deficit or shortfall at all! I'll prove it using the math instruction taught in the school district...
Anyone else see the news story where Moon is closing a school and saving $500k per year?
Was on the news last night.
Here in Mt Lebanon the Teachers Union would NEVER allow that and since the School Board is made of mostly union lovers the only thing that will happen is a 12%+ pay increase and reduction of hours. Bend over... You may not have built it but boy are you going to PAY FOR IT! Close down ALL the schools and give each parent a set amount of money to attend the school they want.
The teacher's contract expires in 2015. The negotiations associated with the next contract will make or break this district.
Are people afraid of losing MTLSD teachers? Where are they going to go if they don't get what they want here? From the young recent grads that I know, it is very difficult to find a job in education in SWPA. I think the teachers have a pretty sweet deal in MTLSD and they ought to just be grateful for what they have.
11:48 PM, it goes back to this. It starts at the top.
Elaine
Question... Are the School Board members paid a salary? We are new to Mt Lebanon and our kids are very unhappy with the teachers. We also fear what our taxes will be after the township forces this assessment crap on us. I love that we have two next door neighbors that are like Grandparents to us and Great Grandparents to the kids but we can't afford an additional $3000-4000 tax increase.
1:23 AM, no school board member is given a stipend. The commissioners, however, receive a small stipend.
Elaine
For all those taxpayers/voters that chose to listen to Cappucci, Birks, Cooper, Kubit, Remely, Lebowitz, Posti, the "What the Kluckers", and the warnings of hijackers in our midst— here are some numbers to review.
In 2008 there were 5,416 students enrolled in our school district and the budget was $73,084,875.
Today, Steinhauer is forecasting a 2015 budget of $88,300,000. In just 7 years the budget has risen over $10,000,000. Enrollment is projected to fall below 5,300 students and continue to drop.
According to projections school district PSERs contributions are to rise.
This from Cranberry...
"For instance, Seneca Valley was mandated in the 2010-11 school year to pay a 5.64 percent rate into the pension system, which means the district paid $56.40 for every thousand dollars on payroll.
However, that rate has climbed every year and has since jumped to a 21.4 percent rate for the 2014-15 school year, meaning that Seneca Valley pays $214 into the system for every thousand it spends on payroll.
According to preliminary budget numbers released earlier this week, the school district is reserving $2.4 million for next school year just in pension costs.
And according to Burtner, that rate could climb as high as 32 percent for the 2020-21 school year, which means the district would pay $320 for every $1,000 in payroll."
http://www.thecranberryeagle.com/article/20140212/CRAN0101/702129821/-1/CRAN0802
Our school district's PSERs contribution rate is 21.4% just like Seneca's and it will jump to 32% in 2020-21 as well.
Plus we have the teachers grievance that should they win will add even more to the pension crisis.
So with falling enrollments does anyone expect SD taxes to fall? Do those 150 newcomers hit by the reassessment really think the commissioners are the people to go to for relief?
If you think this school board has the cajones to get things under control - think again. Lebowitz gets excited over every spending proposal and Cooper thinks it cost just a couple of large pizzas.
Even if we do get some sort of property tax reform, school district expenditure are still going to skyrocket. Those expenditures have to be paid from somewhere!
CORRECTION
In 2008 there were 5,416 students enrolled in our school district and the budget was $73,084,875.
Today, Steinhauer is forecasting a 2015 budget of $88,300,000. In just 7 years the budget has risen over [$15,000,000.] Enrollment is projected to fall below 5,300 students and continue to drop.
That is an average yearly increase of $2.1 million!
Fighting over your home's assessed value compared to your neighbors won't stop those increases.
From the Huffington Post—
"Median household income fell for the fifth straight year in 2012, the Census Bureau reported on Tuesday, to $51,017. That was the lowest annual income, adjusted for inflation, since 1995.
The typical American family's income has fallen every year since 2007, the year the Great Recession began, for a cumulative decline of 8.3 percent. Median income is also down 9 percent from its record high of $56,080, set two recessions ago in 1999. (Story continues below depressing chart.)"
http://m.huffpost.com/us/entry/3941514/
Then we have this from The Almanac.
"Mt. Lebanon school district needs to plug a $2.6 million budget shortfall in 2015, according to a presentation by Dr. Timothy Steinhauer at the March 10 school board meeting. This is primarily the result of increasing pension contributions and healthcare costs. PSERS contributions will increase from 16.93 percent to about 21.4 percent [projected to rise to around 33% in 2020] of employee salaries in 2015. Healthcare costs, meanwhile, are projected to rise 5.75 percent. Together, employee salaries and benefits account for 75 percent of the district’s budget."
http://www.thealmanac.net/article/20140311/NEWS/140319982#.UyByUSd5mc2
Is anyone beginning to get the picture yet?
That Capital Campaign fund raiser, you know the one that we hired an $83,000+ leader for... isn't that suppose to offset these rising budget expenditures?
Yeah, I know, we're in the quiet phase.
And pigs fly and magical frogs talk.
Time for an outside audit! This is pure crazy... Watch as the new Teachers' contract is finalized early (of course) and teacher's salaries are increased beyond belief. I know I'm at the tipping point and hope others are there! Mt Lebanon should fire ALL the teachers and hire college professors.
You may want to rethink that suggestion, 5:38 pm.
http://www.pennlive.com/midstate/index.ssf/2013/01/potential_for_a_faculty_strike.html
January 2013
Potential for a faculty strike increasing at the 14 Pa. State System of Higher Education universities
Coupled with the study below and hiring college professors might not make things any better.
http://www.apscuf.com/blog/item/265-independent-report-shows-that-state-system-universities-mismanage-budgets
Tuesday, 03 December 2013 11:56
"Independent report shows that State System universities mismanage budgets"
"Today the Association of Pennsylvania State College and University Faculties (APSCUF) released a report indicating that the State System of Higher Education (PASSHE) has been allowing the fourteen state-owned universities to mismanage their budgets by hiding debt in affiliated corporations, funding new construction based on questionable assumptions, and misleading the public about their financial difficulties."
75 percent of the budget?? So the 75 percent of residents who dont have kids in the schools are funding pretty much nothing but employee salaries and benefits? But I thought we had some blue ribbon super stellar numero uno district that put the kids first?
This community is out of its collective mind.
Notice Tim gave the budget report this year. Think about that for a minute. We have had deficits every year for millions and the board cuts costs. Really?
How often are we going to be suckered with the same budget line?
10:07, you just explained why you can't sell an expensive house in Mount Lebanon.
National Teachers’ Union Fibs in Political Attack Ad
Uses taxpayer resources to do it
March 4, 2014, HARRISBURG, PA—Today, the Commonwealth Foundation corrects the American Federation of Teachers (AFT) and gives the government union a failing grade in truth-telling.
One week ago, the AFT ran ads in newspapers across the state—including in the Patriot-News, the Pittsburgh Tribune-Review, and others—falsely claiming Gov. Corbett “closed neighborhood schools” and “laid off thousands of teachers” in Philadelphia through massive education funding cuts.
The Commonwealth Foundation countered the AFT’s deceptions about education funding with its own ads (example here) in the same newspapers and highlighted the fact that taxpayer resources were used to collect the money spent to buy the union’s political ads.
“The truth is, state funding for schools is at an all-time high and the mythical ‘cuts’ the AFT complains of was federal stimulus money that everyone knew was temporary,” commented Matthew Brouillette, president and CEO of the Commonwealth Foundation and former high school teacher. “What’s worse, this latest political smear by AFT was paid for using teachers’ dues money that taxpayers helped collect through automatic payroll deduction from teachers’ paychecks. Unfortunately, teachers had no say in whether or not to participate in the AFT’s deceptions.”
Brouillette continued, “It’s more than a little ironic that AFT chose to run these ads during the same week former House Speaker John Perzel was released from prison after being jailed for using taxpayer resources for politics. Until we end the government unions’ exclusive and unfair financial and political advantage, political attacks like these will continue to be subsidized by taxpayers.
Paycheck protection simply requires that government unions like the AFT collect their own dues and campaign money—just like every other political organization in the state. It would not prevent the AFT from engaging in any of these activities, but it would stop the use of taxpayer resources for political purposes.”
Brouillette noted, “Even union members themselves are in favor of this reform. According to recent polling, 67 percent of union households believe the collection of dues by the government is not a proper use of state resources.”
Matthew Brouillette and other Commonwealth Foundation experts are available for comment on the truth behind education “cuts” and the need for a paycheck protection law.
Please contact me at 856-607-4208 to schedule an interview.
When I was looking for a teaching job in 1977, I sent out resumes and cover letters in a 150 mile radius of Pittsburgh. I had 2 interviews. It was during a recession. Teachers in Mt, Lebanon can go elsewhere. One has to be willing to go where the jobs are. They are spoiled!
Private industry and business has been shedding jobs, cutting expenses and slashing benefits for years. Today this article appeared in the Pgh Business Times "
Highmark furloughs 100."
"Highmark furloughed 100 employees in its three-state service area Wednesday, including 40 in Pittsburgh, spokesman Aaron Billger said." These 100 join 250 cut in January.
Somehow though our admission and teachers believe they are exempt from the real world. They take raises far above the rate of inflation, file grievances for more pay while at the same time enrollments fall and the cut material and supply budgets.
Then proclaim, its all for the kids!
Elaine does the "media" have to pay for RTKs? Also did you get a response to your RTK appeal? I think you stung them with your latest move.
No, 2:17 AM, the "media" does not have to pay for RTKs. Mt. Lebanon does not consider me the media. It is too early for a response to my RTK appeal. I believe the Office of Open Records has thirty days. I know they are working on it though.
Elaine
I should add that my RTK appeal is with the municipality and not the school district, 2:17 AM.
Elaine
"“There's no way to do this without making some reductions in our budget,” said school board President Elaine Cappucci. “We've done that every year for years, and it gets harder and harder.” The board will continue to discuss the budget at its March 17 meeting."
Perhaps Cappucci should be made to explain where they made those year after year cuts.
Then explain what causing those seven tax hikes since 2006.
In 2008 the school district expenditures were just over $73,000,000. If Cappucci's cutting the budget year-after-year, how are we now 6 years later at $88,000,000?
Plus, while you're trying to figure out what Cappucci was cutting exactly year-after-year, you may want to check this info from the Philadelphia Tribune.
http://www.phillytrib.com/newsarticles/corbett-calls-pa-education-funding-formula-unfair.html
"According to Eller and watchdog group, Media Trackers, Corbett has been unfairly criticized for cuts in education funding. According to Media Trackers, decreases in education funding were tied to money provided through a federal stimulus program, which ended during the 2010-11 academic year.
“Pennsylvania’s public schools lost $1.1 billion in federal funding,” Eller stated in an emailed response. “Unfortunately and incorrectly, many have said that this is a result of Gov. Corbett’s budgets.”
“Since Gov. Corbett took office, state support of public schools has increased $1.17 billion [14 percent],” according to Eller, who also stated the current state budget provides more than $9.75 billion to Pennsylvania’s public schools, the highest amount in the state’s history."
Maybe Cappucci's using that new Terc math!
"“There's no way to do this without making some reductions in our budget,” said school board President Elaine Cappucci. “We've done that every year for years, and it gets harder and harder.”
Could it be that Cappucci and the board suffers from dyslexia or some other disorder?
Expenditures in 2008 - $73 million
Expenditures in 2015 - $88 million
A $15 million increase and cutting gets harder and harder. Wow where would they be if they weren't cutting?
Speaking of fairness and school district frugality...
If one prominent school board member was paying school district taxes on the actual purchase price of their home rather than the 2014 assessed value — the board could CUT student parking fees back to the original amount of $25/year.
12:15,
They knew a year ago how much they wanted to cut from this year's budget.
They also know enrollment is projected to fall to 4,800 students - that has been documented.
There not cutting any salaries!
Those increases in wages that the administrators and staff keep taking-- add to the pension funding problem that they keep blaming on the Governor.
Hey, he's not a saint but he has little jurisdiction over our school construction, change orders, capital projects, raises, vacation time or bonuses.
Its time for this board to own up that the deficitis of their making, not Harrisburg.
In your update to this post you suggeted Klein should take one for the team.
In my opinion she is not officially a team member because she sold her Mt. Lebanon home and got the hell out, probably knowing all too well what tax increases would be necessary. (was her MTL home one that got hammered in the Newcomers reassessment?)
Rather than a team player is it possible that she might rather be a paid mercenary? Didn't they blow the lid off her position salary cap?
$88.3 million is equivalent to $2,664.70 taken from every man, woman, and child living in Mt. Lebanon (based on 2010 Census figures of 33,137 people).
$88.3 million and growing, 11:31.
Just think 11:31, in round numbers it takes over 60 residents paying $2,664 each to cover just the Supers salary. That doesn't include benefits, insurance, employer tax contributions, vacation time or pension plan.
6:21 A M, I hate to burst your bubble but tax assessments are not based upon what you paid for your home or upon Zillow estimates as someone else suggested. They are based upon the case you can make for your home being assessed lower because someone else bought a similar home for less money within the last few years.
Get a lawyer to help you with the appeal process or suffer the consequences of the Commission's "Newcomers Tax."
Wall Street Journal today--
http://m.us.wsj.com/articles/BL-REB-23895?ref=/home-page
"U.S. CEOs Expect Slow Economic Growth, Scant Hiring"
"tepid economic expansion and limited payroll expansion"
Wonder what the "payroll expansion" bottom line is for the school district since 75% of the budget is based on staff?
Hope the school board is paying close attention to today's breaking news!
http://triblive.com/mobile/5788656-96/pittsburgh-jobs-rate
"Job market stalls in Pittsburgh area
By Chris Fleisher
Published: Tuesday, March 18, 2014, 12:00 p.m.
Updated 16 minutes ago
The Pittsburgh area's unemployment rate continues to drop but so does the number of jobs, leading to concerns that the local economy has stalled."
Unfortunately, the school district's spending habits never stall! They are forecasting their expenditures rising by over $2 million this year alone.
Now what can we imagine caused this? Books? Materials? Students trips?
Could possibly be an overly zealous renovation that focused on sports facilities rather than academics?
How about new hires at way over market, raises that drive up pensions, lucrative vacation time and bonuses?
75% of the school districts budget goes to staff.
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