Tax hike and cuts and reserves! Oh my!

In case you didn't see today's PG, Molly Born had an article called, Tax hike, funding, job cuts, tap of reserves characterize plan in Mt. Lebanon. No surprises.  It was very, very, very, very,  (oops...one too many very's) difficult for the board to make $850,000 in cuts. No concessions from the teachers, Dr. Tim, or Ms. Jan.

A dollar not borrowed is not a dollar and 77 cents saved.

Yesterday's Almanac captured the essence of the District mentality. Mt. Lebanon resident, Bill Matthews submitted this letter to the editor.   Intent to spend a dollar still the same (Saved in Google Docs) Bill pointed out the twisted logic that Jan Klein shared with the Almanac.  Ms. Jan estimated that for every dollar the district did not borrow, it would save about $1.77.  The implication was that by raising taxes and preserving squirreled away funds for the renovation we can avoid buckets of interest expense. But the underlying intent is still the same - to spend a dollar.  Hence the savings is only 77 cents, not 177 cents.

Now go to the headlines of the May 2, 2012 Almanac. USC needs more cuts (Saved in Google Docs) USC still needs to cut $520,000, after teachers' union concessions totaling $3.7 million over the next two  years. The new budget deficit would amount to $520,000.  USC is trying to hold their tax hike to .41 mill, not taking advantage of the higher exceptions granted by the state.  Mt. Lebanon has indicated that we will be getting a .5 mill increase.

The Board plans to continue budget discussions at the May 14 Discussion Meeting. The budget will be approved at the May 21, 2012 school board meeting. Send your emails to schoolboard@mtlsd.net.


At the bottom of both online articles:

Posting on Almanac website suspended

Beginning Tuesday, May 1, The Almanac will temporarily suspend the posting of reader comments on stories on the newspaper's website.

The move is necessary as the newspaper prepares to install a new content management system and launch a redesigned website this summer.

The comments feature will be restored at that time.

Back to the budget

Thanks to the disrespectful PTSA email, the school board received a break from me for a few days.  I am back on track now. In today's Trib article Upper St. Clair district, teachers to consider concessions, pay freezes for PA Numero Uno Superintendent, Patrick O'Toole and the USC finance director have opened up the door for more discussions with the teachers' union over concessions that could help close a $3.2 million deficit anticipated in the next school year.
In Mt. Lebanon, we're considering cutting back on maintenance again (that is what got us into trouble with our school buildings) and eliminating towels.  The List v 2.0 shows $879,000 in cuts. Whoopie. Of course, everything is hush-hush here in Leboland. The public knows more about what is going on in Upper St. Clair than what the Mt. Lebanon School Board has shared with its stakeholders. We are told nothing. We have a right to know, folks.

The List version 2.0

The April 2, 2012 version of "The List" is finally available on the District website. There are now 44 items on "The List"  totalling $878,991 vs. the previous list with 38 items totalling $680,604. http://www.mtlsd.org/district/budget/stuff/budgetreductions_4.2.2012.pdf
No mention of any reductions affecting Administration.

Above the line...below the line Part 2

Even though there wasn't a vote at last night's meeting, the big news is that the Board listened to the students' presentations last week and will be moving the community service coordinator's position to "Below the Line." (BTL)

Eliminating one elementary school teaching position has been added to "Above the Line" (ATL)

Is anyone keeping track of the different line items mentioned BTL?

The District website states that an updated list will be posted this week.

An additional comment by Josephine Posti at last night's meeting: She remarked about the community input regarding this year's budget is greater than any other year. You don't suppose this blog had anything to do with that or the fact that people are trying to save their houses, do you?

MTLSD discusses budget shortfalls, layoffs and program cuts

At the February 13, 2012 meeting, the School Board discussed the million dollars "out of balance" in the budget. I heard phrases like "Be prudent" and "Prioritize cuts as far away from the classroom as possible." But when a resident brought up the high school project, Josephine Posti said that we would have had this budget shortfall like all the other districts in the Commonwealth are experiencing, without the high school renovation.  She also said that we have to look at history in terms of increases. I guess that is how they are rationalizing this mess.  We can't say that we didn't warn them.  Someone suggested that I put links to various articles suggesting areas to cut. I started with this one Mt. Lebanon superintendent to get 3.5% raise Now we are waiting to hear from Jan Klein and Dr. Tim where they recommend cuts. Uh, do you think they will look at their own increases?  I don't think so either.
So I started to list links of warning signs or budget cuts suggested on this blog.

It's crunch time.
Here's an idea from the staff planning team - close an elementary school.
USC teachers facing job cuts
John Allison's Parting Gift for Mt. Lebanon
What went wrong?
State Budget Cuts Slice Local Education
If You Are Not a Retired Teacher, Be Afraid of The State Budget
Corbett's Budget Cuts

There are so many more, that I gave up. Currently, there are 507 posts and the majority of them have something to do with the fiscal irresponsibility on the part of the school board, not to mention www.lebocitizens.com.  Just read the archives, Josephine, if you want to look at history.

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.

Are people finally starting to catch on?

New Yorkers Fleeing State:

http://www.myfoxny.com/dpp/news/new-yorkers-fleeing-state-ncx-20110803

 

The Tax Foundation ranked New York highest in the nation in the combined state and local tax burden in 2008. And as small-business lobbyist Mike Durant noted, New York has also "consistently ranked worst or in the top three worst in business climate. You can't suck every penny out of people and expect them to remain in New York."

 Replace New York with Mt. Lebanon and it really means something.

And this gem from James Fraasch's blog from 10/11/2009 (Oh James, we wish you were still on the Board)

http://lebosbupdates.blogspot.com/2009/10/state-budgets-across-country-struggle.html

"Next, let's take a look at New York. You may remember back in April/May that New York planned on implementing a 30% increase in taxes on the wealthy. They saw it as an easy way to close their budget gap. The income tax increased 3.45 percentage points to 10.4% on people earning greater than $250,000- one of the highest rates in the nation. Other states across the country waited to see what the outcome of this taxation would be. Well, here in this article from Miami (Florida was apparently one of the states watching) New York Governor David Patterson admits that the higher tax rates have "yielded lower than expected state wealth". Twenty-percent lower to be more exact."

and

"The second lesson to be learned (thanks to New York) is that increasing taxes on the wealthy will only make the wealthy leave. There were some high profile defections from New York from Rush Limbaugh to Tom Golisano (owner of the Buffalo Sabres) to Nancy Bell (a manufacturer who moved her facility to Florida). All three of these people moved their residences to Florida to avoid the higher taxes. The fact is, you need the wealthy. You need them to stay and invest and employ people."

Is New York finally learning what happens when you tax people more than anyone else?  Those people can vote with their feet. The exodus of people creates a terribly vicious cycle where the same tax burden is spread across a dwindling number of residents.

I have news for you.  Our taxes are going up next year. The commissioners have held out as long as they could.  It is coming. Add to that, the recreation bond that is in the works. While the School Board plays games with multiple-prime contracts just to get the bids down for the high school renovation, we can look forward to more budget cuts. 

As James Fraasch wrote back in October 2009,

Income tax and sales tax revenues to governments will not recover until employment recovers. This means we have at least two more years of state and federal budget cuts coming.

"And then there's us."

For whatever reason, the Almanac is delivered to the opposite side of my street. I have to rely on friends to email me articles from the Almanac.  I appreciate receiving these links as well as links to other newspapers. In my inbox yesterday, I received two articles that pretty much sum up what is happening in school districts across the state.
From the Philadelphia Inquirer:

'Interim' school budget adopted

Full-day kindergarten and most transportation in Phila. were cut in the $2.8 billion plan. A union move drew fire.

June 01, 2011|By Kristen A. Graham, Inquirer Staff Writer

The Philadelphia School Reform Commission adopted a $2.8 billion "interim" budget Tuesday night, formally endorsing deep cuts, but signaling that it hopes it can roll back the most painful ones.

"Many of the critical building blocks of the school district's budget are still uncertain," chief financial officer Michael Masch told the SRC at a dramatic special meeting.
But unless talks in City Hall and Harrisburg yield new funding, full-day kindergarten is gone, as is most transportation. There will be 3,409 fewer positions next year, including 1,158 fewer teachers, and cuts to early-childhood education, individual school budgets, nurses, counselors, the arts, and more.

And then there's us.  Mt. Lebanon does not have a full day kindergarten program or school buses to cut.  What we ARE doing is:

Mt. Lebanon board greenlights school redesign Mt. Lebanon's school board gave the go-ahead June 20 for architect Tom Celli to begin drawing up plans for the district's redesigned high school renovation project. He will move forward pending a few final clarifications regarding the layout of rooms and corridors in the gym areas. The goal is to re-bid the project in September. http://www.thealmanac.net/alm/story10/06-22-2011-Lebo-school-board (Article saved in Google Documents.)

We can't keep going at this pace.  When do the furloughs start? How will we be able to afford the last year of the Teachers' Contract?

Upper St. Clair budget slashes middle school sports

While our superintendent and school board are desperately trying to spend $113+ million, Upper St. Clair's superintendent and school board are cutting programs and positions.  Included are cuts in staffing, reduced technology spending, and reductions in middle school sports programs. Is this when someone brings up Mellon turf?
http://postgazette.com/pg/11144/1148727-100.stm

Timely letter to the editor

Just as our federal and state governments are making cuts to needed medical and educational programs, our local school boards have to make budget cuts also. The only problem is that they complain about those cuts but haven't learned a lesson themselves.
Cutting math, science, language and music programs seem to be less important than athletics. Where are their priorities? The percentage of students who will be able to make a living in the sports world is so miniscule that to preserve high school athletics in a tight budget crisis is inexcusable in these times of belt tightening. If some sort of athletic activity (football, basketball, baseball) is thought to be so important, then let those who participate raise the funds needed. These are activities that are extra curricular with the accent on extra.
The majority of students benefit from classes that prepare them for real life not the dreams of becoming a superstar in the world of sports, where the percentage of becoming a professional is lower than the percentage of finding today's honest politician. It's a sad day for our communities and school districts when academics have to take a back seat to appease those who can't make the right choice when it is right in front of them.
Remember, these are the future leaders who will be making choices for you when you are in need of elder care. They'll probably toss you a football and tell you to go out and exercise. Oh, by the way, you want fries with that.
LOU WEBER
West Mifflin

http://blogs.sites.post-gazette.com/index.php/opinion/open-letters/26788-school-boards-are-making-the-wrong-cuts