TimesLeader.com

Trail OKs budget

Mauri Rapp Abington Journal Correspondent

FACTORYVILLE - On June 29, Lackawanna Trail School District’s Board of Education passed the district’s final budget for 2009-2010. Concerns about the current economic climate and the financial impact of a raise in taxes influenced the decision of school board members, resulting in a 8-1 vote to adopt a budget that will include a minimal raise in millage but excludes a $100,000 reserve that was previously calculated into the budget.

The budgetary reserve would have resulted in a tax increase of 2.24 mills for residents in Lackawanna County and 1.38 mills in Wyoming County, which according to district business manager David Homish would have equaled an average of $32 added to each property owner’s tax bill. Without the budgetary reserve, each county will see a much smaller tax increase: Lackawanna County property owners will see an increase of .12 mills while Wyoming County property owners will see an increase of .3 mills. A mill is the number of dollars a taxpayer must pay for every $1,000 of assessed property value. With the final approved budget of $17.9 million, taxpayers will have a total millage of 129.04 mills in Lackawanna County and 65.89 mills in Wyoming County.

Part of the risk of operating without a budgetary reserve, said Homish, was that the district has still not received funding from the state. According to Homish, Pennsylvania’s budget is not due to be passed until July 30 or later. Homish said that the district also still couldn’t be sure whether or not they would receive money from the federal economic stimulus package; however, he anticipated that the district could receive approximately $168,000 in stimulus funds over a two year period. The final budget also accounts for the final payment in March on a debt service for the construction of the Lackawanna Trail Elementary Center in 1991.

Board members deliberated for more than an hour on whether or not to pass a budget without a budgetary reserve. “It takes in mind the tax payers because things are difficult this year,” said board member Dan Naylor. Secretary Judith Johnson admitted to concerns about passing a budget without a reserve, but said that she felt the current economy was hard enough on home owners without dramatically increasing taxes. “I never thought I’d say that I’d like to see a zero fund balance,” said Johnson. “but if we’re going to do it, this is the year to do it.”

“It’s about time we just don’t raise taxes,” said Treasurer Jacque Petherick. “People are getting laid off. They can’t afford it.”

The only opposing vote was from board President Frank Tylutki.