Addicted to Revenue UPDATED 2X

The following Letter to the Editor appeared in the April 3, 2014 edition of the PG.

Mt. Lebanon school board President Elaine Cappucci was recently quoted as saying that if the school district did not raise taxes (again), the Mt. Lebanon schools would be “decimated.” Mt. Lebanon has repeatedly raised taxes on its residents over the past several years, either through millage increases or by targeting individual property owners in court for higher tax assessments. Recently, in collaboration with the township, a legal group was hired to go after 150 new residents who bought their homes in 2011 and 2012 for higher tax assessments via what amounts to a “newcomer’s tax.”

First, Ms. Cappucci’s hyperbolic comment about the state of Mt. Lebanon schools is manipulative and irresponsible. Mt. Lebanon has good teachers and kids who largely have support at home; there is no risk of imminent decimation. Having worked in schools in New York and Detroit, I have seen decimated schools. Kids come to school abused and hungry. Teachers are unsupported and ill-trained. The physical environment is not only unpleasant but dangerous. Mt. Lebanon’s schools will not be decimated if taxes are not raised. It is just that school officials will need to make choices they are not used to making (while 95 percent of school districts around the country would love to be even in their pared-down condition).

Further, Mt. Lebanon Commissioner David Brumfield wants to expand unfair taxing from buyers of homes in 2011-2012 to those who bought in 2006-2010 and 2013. At a recent meeting, he expressed happiness with the fact that such a move would raise an additional $14 million. But who authorized a budget increase of $14 million? What do they need all that money for? And do Mt. Lebanon residents ever get to say “enough is enough”?

The township’s budget already has increased from just under $40 million in 2011 to just under $50 million in 2013. The school district’s proposed budget for 2014-15 is $94 million. This is approximately $144 million to run the schools and municipality in a midsized suburban community in Western Pennsylvania — an annual budget larger than that of some entire nations.

Like an addict whose solitary goal increasingly becomes getting cash for the next fix, Mt. Lebanon has become addicted to revenue and has shown an increased willingness to achieve the intake of public dollars at all costs. But if Mt. Lebanon does not quell its appetite for the people’s cash, the one thing that will be decimated is the idea that this particular community in the South Hills is a good place to move to and live.

JASON MARGOLIS
Mt. Lebanon

Update April 3, 2014 10:20 AM The following letter to the editor appeared in 04.02.14 edition of The Almanac. Lebo assessments grossly unfair (Saved in Google Docs)

Update April 3, 2014 4:18 PM  The letter in the first update states that there are homes with garages that were assessed improperly. The county database has more fields than what is published on the county website. The website will only show garages that are part of the dwelling. If a garage is attached or detached it will have a “0” after garage on the website. In most cases the county assessed the detached and attached garage and has that information on the property record card. The property record card can be purchased for .25 per page. Contact the county at 412-350-4600 to inquire about obtaining a property record card on any property in Allegheny County.

This is valuable information. Why? If the property record card is wrong, your tax bill is wrong!

Here is a fun exercise

The Mt. Lebanon Tax Office should be commended. Our June 1 tax bills ARRIVED in our mailboxes on June 1.  They are so efficient!

For those of you who have recovered from the shock and are looking for something fun to do on this Sunday afternoon, I have a fun exercise for you all.  The Allegheny County website, Allegheny County Real Estate Office provides a free search for mortgages. Click on "Free Search" in the gray text box. The default office setting is "Deeds." Using the drop down arrow, find "Mortgages." Every time one takes out a mortgage, refinances, takes out home equity loans, or pays off the mortgage, it is all recorded here.

Here is where the fun begins. Start looking up the names of those who vote on our tax increases. Compare the amounts of what is owed vs. the sale price of the home here. In many cases, it is obvious why we are where we are with our school district budget.

Municipality Sets the 2013 Millage

The agenda for Tuesday's Commission meeting states that the Municipality will be reducing the millage from 5.43 mills to 4.51 mills.

Consideration of Resolution No. R-6-13 fixing a tax rate for 2013.

On December 11, 2012, the commission, through Ordinance 3226, set the millage for 2013 by formula to comply with application anti–windfall legislation and court orders. The municipality is now formally establishing the rate previously set by formula. The 2013 rate will be 4.51 mills. The 2012 rate was 5.43 mills on each dollar of assess valuation.

Recommended Action: Move to adopt Resolution No. R-6-13.

On the School Board front, the final budget for 2013-14 will be presented and discussed Monday evening as listed on Monday's agenda. Will the millage remain at a millage rate of 27.67 (unadjusted for any change in assessed value) an increase of .54 mills (unadjusted for any change in assessed value) over the 2012-2013 school year? Isn't the proposed budget supposed to be available in its final form on May 10? It is May 10, and I don't see anything on the District website.

The links were fixed!

I guess it pays to pick on the district website. The links were fixed. Tomorrow, the school district will be holding a special budget meeting in the Jefferson Middle School Auditorium. The preliminary budget has not been updated since the December 12 school board meeting.

Forecasted Preliminary Budget for 2012-13 dated 12-08-11
PDE 2028 Preliminary General Fund Budget

Unfortunately, the home page still shows the meeting being held in the library. Darn...we were so close to having it right!!!

Update 03/25/12 9:45 p.m. Here is a quote for the school board directors.

“Government at the state level and government at the local level need to keep in consideration the people who pay the bills and stop demanding they give more.”

PSEA's report says schools are at risk of bankruptcy

Update 03/26/12 11:10 a.m. The home page has been updated to show that the budget meeting will be held in the Jefferson Middle School Auditorium. How about eliminating the PIO for the school district instead of the community service coordinator? The move is further away from the student and the savings would be greater.

Commission Financial Reforms and then there is the School District

Dan Miller's December 9 post on his blog, is Financial Reforms.  Dan writes:

But as our budget vote quickly approaches I have worked with staff, other Commissioners, and citizens to put together a series of financial reforms that I believe will make sure that we do not repeat the same mistakes that have gotten us here. And to be clear- this failure in my opinion rests on the Commission majority. While acknowledging that an overwhelming amount of residents are happy with Municipal services- the Commission majority has been unwilling to tell you that these services cost more then you are being billed. I believe that simply voting for a tax increase alone does not “fix” this problem. In my opinion any tax increase must be accompanied by such fiscal reforms listed below that will mandate real responsibility from elected officials- regardless of whether service levels are cut or increased moving forward.

Dan goes on to list his eight proposed ordinances and comments but adds:

* Note: These ordinances may not yet be finalized completely. While I do not expect the intent of them to change it is possible that in order to receive majority support some words or items may have to be altered. I also have included a couple areas where I believe it is reasonable to negotiate. Additionally I have offered some brief comments after each one to help give context for them- believe me, I have more to say on every one.

Dan, I want to publicly thank you for all your hard work - even up to the bitter end of your term.  You have been fair and open.  You have adopted constituents outside of your ward (like me) and have been an excellent role model for our new junior commissioners, current commissioners, and hopefully has made an impact on our school board directors.  Thanks, Dan.

Now the School District, on the other hand, has this on their next agenda.

2012-2013 Preliminary Budget – The Board must prepare and approve a final budget for
2012-13 in May of 2012. In preparation for this final budget, the Board’s first action
must be to determine what potential millage increase will be required in that final budget.
There are still many uncertainties in preparing the budget for 2012-13 so early in the
year. We do not yet know our staffing needs, student course selections, numbers of
retirements, health care cost increases, earned income tax trends or state funding
parameters. Without these critical pieces of information, any budget projection at this
time includes inherent inaccuracies due to estimates without factual basis. Act 1 of 2006
gives the Board the option to pass a resolution in December of 2011 stating it will not
exceed a millage increase permitted under the approved Index which calculates to about
.37 mills if the Index is 1.4%, or .45 mills if the Index is 1.7%. We believe that we will
require significant budget cuts to meet Index limitations. If the Board wants to preserve its rights to raise millage to include both the increase for the Index plus the three allowable exceptions for PSERS cost increases, Pre-Act 1 Debt and special education cost increases, the Board must pass a preliminary budget at the January Board meeting. That preliminary budget must include a millage rate high enough to require exceptions to the Index. Note that even if the Board approves such a preliminary budget in January, the final budget in May does not have to include the same millage rate. It can be approved at any millage rate up to the one allowed by the Index plus any approved exceptions

Granted there are still many uncertainties on the District budget side, but I would like to add something to the equation that needs mentioned, a presentation made by former School Board Director, James Fraasch. Perhaps James will update the numbers if, or when the bids come in too high.

There is something really fishy going on here.

The five year forecast dated 5/23/2011 (the first link below) shows AUDITED revenues for 2009-10 at $74.8+ million. BUT, in a prior report dated 5/16/2011 (the second link) the AUDITED revenues number for 2009-10 is $72.1 million.


How does one gain over $2.75 million in revenue in one week in an audited school year???


http://www.mtlsd.org/district/budget/stuff/04_fiveyearforecast_2011.pdf

http://www.mtlsd.org/district/budget/stuff/final201112.pdf