patching...
Welcome back, Patch Blogger!

East Penn Tax Hike Likely

East Penn taxpayers will likely face a tax increase with the 2012-2013 budget as a result of Monday night's split vote on motion to have administration prepare two preliminary final budgets for May meeting.

 

Monday night’s lengthy East Penn Board of School Director’s meeting made one thing clear – unless something drastically changes, East Penn taxpayers are pretty much assured of a tax hike in the 2012-2013 school budget.

The Board defeated, by a 4-5 vote, a motion by Director Lynn Donches that would have directed the administration to prepare two versions of the proposed preliminary final budget for the board’s May 12 meeting – one with a zero percent tax hike and the other with the administration’s “real” recommendations, which could amount to as much as a 2.9 percent tax increase.

The motion, made by Donches and seconded by Director Julian Stolz, was also supported by Directors Rebecca Heid and Michael Policano. Directors Alan Earnshaw, Samuel Rhodes, Francee Fuller, Ken Bacher and Board President Charles Ballard voted against the measure.

The school board previously adopted a preliminary $120.5 million budget that included a 3.1 percent tax increase, but financial nipping and tucking done since then has brought the increase down to 2.9 percent. The current tax rate is 46.53 mils.

Donches’ motion came after Ballard asked the board if anyone wanted to give the administration direction on preparing the preliminary final budget for the May meeting. A lengthy and occasionally heated discussion kicked off from there.

Ultimately, the debate came down to whose job it is to recommend the nearly $2 million in cuts that would be needed to get the district to a budget that would freeze the tax rate in 2012-2013.

Earnshaw said that it’s “the job of a school director to set the direction for the district” and that those requesting a budget with no tax increase needed to give the administration some guidance on how to get there.

If you think that there is $2 million in waste in there, tell them what parts of the budget you want them to look at. I suspect that if there was $2 million in waste in there, it would have been gone a long time ago. You are weaseling out to say it is someone else’s job to do that,” Earnshaw said.

Defending the motion, Stolz disagreed: “We are talking about less than 2 percent of the budget. I believe we could do that without cutting 25 teachers or the entire athletics department or the drama department. It’s not the school director’s job to count the meatballs. Let them count all the meatballs and show us what a zero percent budget would look like. It’s not my job to count the meatballs.

The board will vote on the proposed preliminary final budget at the May 12 meeting. The final budget vote will happen in June.

Related Topics: 2012-2013 Budget and East Penn School Board

Robert Sentner

8:29 am on Wednesday, April 25, 2012

Nice 2.9 percent increase on top of my $6000 asessment increase. you guys almost have me ready to give up, keep up the good work. Your well on your way to creating another Allentown. Totally frustrated !!!!! Live within your means like everyone else has to.

Reply

Sheriffchris

8:35 am on Wednesday, April 25, 2012

That is enough for me, they will turn East Penn into a ghost town.....after a large reassesment increase and now this on top of that !!!!....when do we ever hear about cuts or spending to match revenue....never ...thats when....OUT OF CONTROL !!!!!!

Reply

Missy Moyer-Schneck

8:53 am on Wednesday, April 25, 2012

Cuts WILL have to be made if you don't want to see happen what is happening here in the city of Allentown. Do you want to see all these overpriced homes in east penn sit emtpy? I think not, the people in this district cannot afford these increases year after year. I'm sitting on a big reassessment increase myself, I certainly don't need another tax increase on top of that. Cut have to be made, sure, for some they will be upset, but for the majority is has to be done...why can't this school board work within it's budget like all of us have to?

Reply

careless fills

8:55 am on Wednesday, April 25, 2012

Any useful discussion about extent of upcoming bussing cuts?

Reply
Comment_arrow
Patch_comments_icon

Jennifer Marangos

9:05 am on Wednesday, April 25, 2012

@careless fills. The bussing cuts would not be on the table for this budget cycle. The soonest anyone would experience bus cuts would be with the 2013-2014 budget.

Robert Sentner

9:16 am on Wednesday, April 25, 2012

Lets talk pension reform, what percent of the budget is the pension obligation ??? And just for the record this isn't 100% the school boards fault, we HAVE to do something about the careless planning in Lower Macungie and the explosion of housing. We need to hold our Planner's and elected officials responsible. Stop letting the developers run our township's and municipalities.

Reply
Comment_arrow

Ron Beitler

9:32 am on Wednesday, April 25, 2012

Exactly. If pension reform is issue 1. Then LMT growth issues is 1A.

Ron Beitler

9:31 am on Wednesday, April 25, 2012

Lower Macungie has a lot to do with this and shares some blame. It must get it's act together with growth issues. This directly affects the school district. Should built out boroughs like Emmaus, Alburtis and Macungie have to pay for LMT's reckless growth policy? Take the Jaindl development. It could potentially add 700-900 new high density homes to the rolls of the school district. Similar to developments like annandale, cold water crossing or penns west. These developments with starter homes are kid factories. According to a fmr school director a new high school price tag? upwards of 150+ million. www.facebook.com/friendslmt

Reply
Comment_arrow

Ron Beitler

9:31 am on Wednesday, April 25, 2012

Recently a director (I believe Julian Stolz) asked the administration to prepare a report on the Jaindl developments impact on the school district. Stay tuned....

Robert Sentner

9:47 am on Wednesday, April 25, 2012

I make a motion to have Lower Macungie have there own school district, let them fund there rediculous growth. to I have a second ??

Reply
Comment_arrow

Ron Beitler

10:06 am on Wednesday, April 25, 2012

No way! I'd have to move.... No way I could afford that! I like my house!
ugh....

Howard R.Bachman,Jr.

10:14 am on Wednesday, April 25, 2012

I'm told to live within my means and adjust to what I have--I think these people
are greedy and don't care if you live on fixed income--no wounder people
are selling their homes and moving out of east penn school dis. They just
keep picking our pockets AND WE DO WITH LESS--THANK YOU EAST PENN
SCHOOL DIST. !! CHOKE ON IT !!!

Reply

for real

11:10 am on Wednesday, April 25, 2012

I think Stolz and Donches should propose the cuts so they can be evaluated. Let's see from there and have a real debate. Anything else looks like politics. Curious, all you folks who are living within your means - do you have any credit card debt?

Reply
Comment_arrow

Missy Moyer-Schneck

12:34 pm on Wednesday, April 25, 2012

After paying off huge cc debt, we are debt free in that area, still have mrtg. payment and every increasing taxes

Robert Sentner

11:53 am on Wednesday, April 25, 2012

Personal, no I do not, whats your point ??? That its ok to keep raising taxes, I think everyone has had enough. Time to go old school, hold our legislators, elected township officials, school boards, and last but not least President accountable.
I think people are finally waking up and seeing the hand writing on the wall, the unsustainable spending by everyone. lets face it there are going to have to be cuts,Administration, sports, band, drama, teachers, staff, afterschool programs, and yes someone is going to have to look at these CRAZY pensions. Someone needs to think outside the box also, Bussing 6.5 million dollars that whole issue needs a good long look at. Now that we have some state representation I would hope that he Mackenzie's first job is to start looking at smoe of these issues DAY 1
Would someone please treat our school district like a business, because we sure are not doing that now. I know I know its all about the kids !!!!!

Reply

Ron Beitler

11:56 am on Wednesday, April 25, 2012

Personally, I have one 500.00 limit Credit Card that is separate from my debit card that I use for items where you have to have a credit card. I.e. hotels. Even for online purchases I use Paypal debit. This is the way it should be IMO. You do NEED a credit card, but carrying high credit card balance incredibly costly and inefficient.

Reply

LMTnative

12:42 pm on Wednesday, April 25, 2012

The school district has little control over most of their budget. The state and federal government unfunded and underfunded mandates such as No Child Left Behind leave school directors in a fight with both hands tied behind their back. Real reform needs to begin with elimination of these mandates in Washington and Harrisburg.

Reply

Rob Hamill

3:19 pm on Wednesday, April 25, 2012

This school board majority is beholden to the union. Ballard has proclaimed that he won't hold the line in negotiations because it is too demanding. Francee Fuller wears a PSEA pin on her shirt for God's sake. Earnshaw proudly accepts PSEA plaques after signing contracts.We need to clean out the spenders and replace them with directors that represent the people and not the unions! Also we need to press our new rep, Ryan Mackenzie about tearing up the defined benfit pension plans which are bankrupting every school district and the state. The good news here is that the people rejected Slattery, the union funded candidate, so we have another potentiall really good voice in Harrisburg.

Reply
Comment_arrow

Alan Earnshaw

11:46 am on Thursday, April 26, 2012

Mr. Hamill,
On three occasions, PSEA has given a plaque to the East Penn Education Association (the East Penn teachers' union) to recognize excellence in communications for publications the teachers produced. The union presented those plaques to the board to hang in the board room as recognition for our teachers and their efforts. In the 10 years I have been on the board, neither I as an individual nor the school board as a body have received any kind of award or recognition from PSEA; not a plaque, not even a letter.

Comment_arrow

truth seeker

12:06 pm on Thursday, April 26, 2012

Hamill never let's the truth get in the way of a good story. What were those population growth predictions for LMT in the 90's Soaring Eagle?

Robert Sentner

3:37 pm on Wednesday, April 25, 2012

agreed Rob, these Union backed school board members need to go, I will personally be much more invovlved next election to clean it out. I am so infuriated over the lack of respect to the tax payers !!!!!
Upper Milford has recently adopted a new pension plan for its new hires, A non defined benefit pension plan. NO reason that we can't do the same with the new hires in East Penn school district, the problem is they don't want to. The time bomb is ticking........

Reply
Comment_arrow

Alan Earnshaw

11:50 am on Thursday, April 26, 2012

The defined benefit pension plan for school employees, PSERS, is mandated by the state. A school district cannot "opt out" or deny particpation to new hires, period. We have discussed pension reform in board meetings, and I believe that every member of the East Penn School Board is fully in favor of it. Many of us have discussed pension reform with our legislators and asked them to support it. Unfortunately, our pleas, to date, have not led to action by the legislature, and we cannot effect change under they act.

Steve Godusky

4:51 pm on Wednesday, April 25, 2012

I am not sure who votes for these people to represent tax payers in east penn but they deserve to pay the price, get them out of there. When all of us need to live within our means we do. Why is it allright for them to spend money they do not have and tell us to pay more tax. Please start by making athletes pay to play. Why should I fund their free ride to college.

Reply
Comment_arrow

Missy Moyer-Schneck

9:15 am on Thursday, April 26, 2012

I'm leaning toward this same idea Steve. I pay for my kids to participate in the youth league, why is this different? If my kids have their hearts set on something, whether that be a sport, chorus or whatever, I will find a way to pay for it so it isn't costing everyone else

Comment_arrow

Alan Earnshaw

11:52 am on Thursday, April 26, 2012

East Penn students do have to pay to participate in sports. For those students who cannot afford the fees, the Angel Network program (funded by contributions from the community, not by taxpayers) is available to provide assistance.

Comment_arrow

watermantimes5

7:41 pm on Friday, April 27, 2012

I pay for my high schooler to play sports at Emmaus High School...they do not play for free. For soccer we had to pay $150 for our son. So I don't know where you got your information, but we do pay.

Ronald Weaver

9:43 pm on Wednesday, April 25, 2012

Excellent comments, only hope the responsible people not only reading them but respect over burdened tax payers and do something. There is only one solution and only one, vote them out, they will not act.

Reply
Comment_arrow

Missy Moyer-Schneck

9:16 am on Thursday, April 26, 2012

Believe me, the taxpayers have been blind sided by many of the newly elected in the past two to three years, I have a long list of those I want out! From commissioners to school board...and it's growing

truth seeker

10:00 pm on Wednesday, April 25, 2012

All folks blaming local school boards for local tax raises start with 2 things:
1) Identify what you would cut
2) Explain why you are blind to what is happening at the state level

So you want to turn the show over to Director Stolz and his allies because they campaign on never raising taxes? What are they prepared to cut? Go to the next school baord meeting and ask them what they will cut between now and June. It is gutless to criticize without a plan.

Also maybe keep in mind that a ballance between a concern for education and tax payers should be present. Of course if you don't care about education I guess that won't matter to you. I could remind folks that this district spent less on this budget than in the previous year but some will never look a this.

Reply

Garrett Rhoads

11:27 pm on Wednesday, April 25, 2012

I have had the privilege of speaking with directors Bacher, Ballard, Donches, and Stoltz recently. I learned that the board of directors is very limited in what they can and can't do in regards to cutting spending due to state mandates and legal requirements. The argument made on this blog about whether or not the directors in question should offer their own spending cuts needs clarification. The school administration answers to the publicly elected school board. Not the other way around. It is the responsibility of the administration to respond to the requests of the board. The administrators earn six figure salaries to perform their job functions. The school board members are volunteer citizens who receive no compensation for their public service to our community. Therefore, it is not unreasonable for the board to ask the administration for a sample offering that shows what the budget would look like with a zero tax increase. The request may have been made for investigative purposes and not intended as a mandate.
As for the need to fix this problem at the state level, I could not agree with the posters more. That IS the primary problem. Actual state funding has not decreased (per Mr. Bacher's comments), although the slight increases in funding do not keep up with the increased costs incurred due to the PSEA teacher's union contractual obligations and pension requirements. This is the real reason our real estate taxes continue to rise.

Reply

Robert Sentner

6:50 am on Thursday, April 26, 2012

pension reform please !!!!!!!!!

Reply
Comment_arrow

truth seeker

8:07 am on Thursday, April 26, 2012

Have you contacted your state Rep? When you do ask him to explain why the Republicans in the legislature decided to create this mess by upping the multiplier, lowering the years one needs to work to be vested, and then took a payment holliday so the entire system would go underfunded.
It makes for great local politcs to demand pension reform and blame educators for this problem. It's even better politcs to blame the board. IF you want the truth go back to 2001 and take a look at the Grand Old Party Politics in the PA general assembly.

Jill Prescott

2:15 pm on Thursday, April 26, 2012

I thought there was a limit to the tax increases in the year of reassessment! Was I wrong?

Reply
Comment_arrow

ted.dobracki

9:25 pm on Thursday, April 26, 2012

Jill you are correct, but here are some additional facts:

1) The reasseessment doesn't take effect until the July 2003 tax bill, so in 2002, the old assessments stay.
2) The limit for the tax increase when there is an assessment is 10%. It is unlikely that in today's environment that the tax increase will be anything like that.
3) The casino gambling law also created regular annual indexed limits for tax increases. The index limit is 1.7%, but EPSD has applied for exceptions that would allow them to increase real estate taxes by 2.9%.
4) As a historical reference, the last reassessment went into effect in July 1991. I was the chairman of the Board's finance committee at that time and we passed a resolution to exceed the 10% limit by approximately 3%, but ultimately the tax increase was kept very slightly below the 10% limit after cuts were made. This was after a 22% tax increase (actually 26% after growth) the year before in 1990. Taxes were out of control then because the previous boards had spent down the fund balance of more than 5% during 88-90 to avoid the tax increase for the spending they had put in place. (Macungie school bonds and 9% pay raises, and more). Pension costs were also 20% of salary at that time. EPSD was in no position to build or repair any schools for several years after those exhorbitant, but necessary increases, and until the pension cost decreases that accelerated during the late 90's.

Steve Godusky

8:08 pm on Thursday, April 26, 2012

Mr Earnshaw states that students do have to pay to participate in sports. I wonder if the fee charged covers busing to games, coach's salaries, uniforms etc. I also wonder why the tennis courts at the high school are lit at all hours for people to play tennis. I guess everyone should pay for this also. If the directors really wanted to cut spending they could but when you have an open checkbook why bother.

Reply
Comment_arrow

watermantimes5

7:49 pm on Friday, April 27, 2012

hmm...I think that the tennis courts light up when people put money in them to play at night...I might be wrong but I thought this is how that works. The fee for sports I have no idea what it covers..however I can say we parents must join the booster club for that sport and do so much volunteering, plus we pay extra money to pay for banquets, maybe a warmup that the child can keep with their name on it etc.

Unum e Pluribus

8:42 pm on Thursday, April 26, 2012

Once you eliminate the non-negotiable parts of the budget(like salary/benefits/transportation all under contract) approximately $20million +/- is left. A simplistic approach is to order every department to spend 10% less. It happens in private business all the time. As for the pension bomb, pension contributions went up substantially next year. The year after next they will go up even more than next years increase. The state legislature, both R's and D's, created the mess to buy union votes in election years and it has to fix this mess. First freeze all pensions where they are now. Private businesses do this when run by incompetent management(Kidspeace anyone?). Secondly, move to defined contribution retirement(401k) for all public pensions. Is it fair? Maybe not. Then again asking grandma to choose between Friskies and Old Sam for dinner isn't fair either. Or the state should just declare the fund bankrupt and liquidate. They can take whatever payout they get and put it into a IRA like everyone else.

Reply
Comment_arrow

truth seeker

11:26 pm on Thursday, April 26, 2012

R's and D's buying union votes??????????? The R's had the general assembly and the governership and they could give a damn about the union vote. They did this for themselves and their political insider allies. You and your frineds just cannot resist the urge to rewrite history. Find a way to blame teachers for everything wrong in this world because it helps push your extreme right wing agenda. Great politics not so great on reality.

Comment_arrow

Mike Waddell

6:04 pm on Friday, April 27, 2012

Unum e Pluribus - I am curious what specific areas you consider discretionary to arrive at the $20 million +/- figure from which to cut the 2%.

Mike Waddell

Giovanni Landi

11:11 pm on Thursday, April 26, 2012

I still can't believe 5 board members voted against having the administration prepare a zero tax increase budget. It wouldn't be the final budget; it would only be another preliminary budget. How can they make an informed decision without the information?

Also, how do they expect board members to make budget suggestions when every attempt to get information is met with resistance? In fact, it happened during this meeting as well. I would suggest people watch the video of the meeting as soon as it's posted to see exactly what was said.

Reply
Comment_arrow

truth seeker

11:22 pm on Thursday, April 26, 2012

Do you honestly think your to allies cannot figure out how to cut the budget? All they have to do is suggest what to cut and begin the debate. Maybe you would care to start? So where does the staff cut to do this 0 tax increase budget? Should they cut alls sports, elminate transportation, get rid of the air conditioning units and plant trees for shading? If you don't remember that one ask your friends at the next meeting?

Comment_arrow

Giovanni Landi

11:28 pm on Thursday, April 26, 2012

So whose responsibility is it to make cuts? In one meeting it's the administrations job, and then when a board member asks for the administration to propose cuts, it’s the school boards job. Now it's my job? Which is it?
If it's my job then the district should be more open with the budget information. I had to file a right to know request just to see the preliminary budget.
I can give you one suggestion, take the $1.2 million dollars that was unexpectedly received and apply that to the tax increase.

Comment_arrow

Giovanni Landi

11:44 pm on Thursday, April 26, 2012

Another thing "truth seeker", why are you letting the administration of the hook? Shouldn't we see what the experts in education would suggest? Isn't that what they're paid for? Why would board members vote against getting the administrations input?

truth seeker

11:53 pm on Thursday, April 26, 2012

ok so if you were the administration and you were preparing a budget and then suddenly you were being asked to prepare a simoultaneous budget demanding significant cuts - wouldn't you at least need some direction as to where to start? I would look to those advocating for the cuts and look for some direction. Also, I think the public should get involved in that discussion. It's all about transparency correct? It's not politics. "Hi I'm school director X and I think we can cut Y to save money so we do not have to raise any taxes". See then the public could have a discussion. You disagree?

Reply
Comment_arrow

Giovanni Landi

12:15 am on Friday, April 27, 2012

I agree with you about the discussion that should occur with the publics input. I also think that the school board directors should have ideas, but how can the directors or the public have any input when the budget information is being withheld? For how many years did we hear that a detailed budget didn't exist? Well now it apparently does. Why are they resisting marking items in the budget as mandated or discretionary? These are important things to know. If we're going to work on this together then there needs to be honesty, transparency, and a willingness to share information.

Comment_arrow

truth seeker

6:06 am on Friday, April 27, 2012

Come on Giovanni your friends know the difference between mandatory and discretionary line items. If not, they can ask specific questions at the meetings. Please encouragage them to come up with some specifics on what they want to cut.

Giovanni Landi

8:37 am on Friday, April 27, 2012

Truth seeker - you seem to be full of excuses as to why everyone should have suggestions about the budget except for the administrators who are responsible for it. Why can't we ask the administrators for their ideas on reducing the budget? That's what Donches and Stolz did, and Heid and Policano agreed. They asked for the paid experts (the administrators) to tell them where they would cut if they had to.

Reply

Leave a comment