Schools

GV School Board Votes in Favor of Act 1 with Exceptions

Tax measure would help district close budget gap.

Great Valley School Board members voted Tuesday night to apply for Act 1 referendum exceptions that would allow the district to increase revenue through a local tax shift. 

Board member Ted Leisenring was the lone dissenting vote, and Kevin McTear was absent. The vote was cast after superintendent Alan Lonoconus presented a long list of possible budget cuts for the 2011-2012 school year and about a dozen audience members weighed in on the situation.

Dr. Lonoconus cited $78 million in projected expenses for the district next year, with $75,831,000 in anticipated revenue, leaving a $2.17 million deficit even with the Act 1 exceptions. Had the board voted the other way, the gap would be closer to $6 million.

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"What the board decides tonight will basically decide a ceiling," Lonoconus said. "Letting the public and the state know we're not going to go any higher than this."

"I recommend we go with the Act 1 index with the exceptions," Board president Bruce Chambers said. "We're looking at a $900,000 loss in revenue due to property reassesments, $400,000 loss in state aid, a $1 million increase in pensions and contracts we can't afford."

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He also cited salary increases and more than a million dollar increase in medical and dental benefit expenses.

Board vice president David Barratt concurred, saying "We're in a situation where we're going to need every penny we can get."

Board member Susanne Carr said the community of taxpayers was ready to share the burden.

"In these times, it's important to remind ourselves we are still at a low rate, compared to other school districts," she said. "Taxpayers are there when we need them, and we need them."

Board member Andrew Daga touched on a theme of the discussion when he called the Act 1 option a "reasonable resolution."

Board member Scott Oswald also agreed with the decision, but criticized other board members for waiting until now to implement the tax shift.

"We'd have another million in our pocket right now if you'd figured that out a year ago. We'd be looking to cut 1 million instead of 2 million," Oswald said.

Leisenring, before casting his vote against Act 1, said the primary cause of the budget problem is the rising cost of salary and benefits to teachers. He suggested a pay freeze.

"Now we're faced with a dire situation where someone has to make a sacrifice," he said. "I will vote for the tax if the administration and teachers share the burden, with all of us doing what is right."

No such stipulation was made, although Dr. Lonoconus, during his presentation, did pledge to forgo his own pay raise, drawing praise from the board and public commenters.

After the Act 1 vote, many members of the audience left the auditorium. The board proceeded to scheduled a special meeting for Feb. 14, to accommodate the budget-submission timeline required by Act 1.

Even with the added funds, the district expects a significant budget shortfall, with the situation growing worse in coming years.

The board needs to construct a two-year plan, according to Chambers, with designs on negotiating contracts that are significantly different than those currently in place.

"We can't be sitting here year after year saying, 'What are we going to do now?'" he said.


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