News

January 23

P.A. to seek permission to hike tax

The district will cite pension costs and special education in its plea to the state, board member says.

By Sherry Long slong@timesleader.com
Staff Writer

PITTSTON – Uncertain about funding the district will receive from the state, the Pittston Area School Board will ask the state for permission to collect higher property taxes.

Each Pennsylvania school district is assigned a particular index percentage from the Department of Education that it can raise taxes under a law called Act 1. This percentage varies each year.

Pittston Area can’t raise its tax rate by more than 1.9 percent for its 2011-2012 budget, as stipulated by Act 1, unless the Department of Education approves an exception request from the district.

“Act 1 gives school districts 10 different exceptions they are allowed to request to raise taxes a little bit more if they qualify. We are filing for the increase in pension costs and special education,” board member Bob Linskey said.

During a board meeting Tuesday night, the board voted to apply for the exception. Linskey said the percentage is so low the district had no choice but to decide to apply.

The district’s current millage is 12.799. The tax rate would increase to 13.0408 mills under a 1.9 percent increase. Residents would pay an average of $28 more per year. If the exception request is granted, the millage could increase to 13.1126 mills, which would represent an additional $36 per year for the average taxpayer.

If approved, the additional millage would generate $300,000 or more for the district, Linskey said.

District Business Manager Al Melone III of the Albert B. Melone Co. of Pittston added that the 2011-2012 index is 2 percent lower than the 2010-2011 figure.

“The index is only going up 1.9 percent. Our teacher contracts and some other contracts are going up by 3 percent. These are negotiated contracts that we really have no control over. These are contractual obligations,” Melone said.

To be eligible for the exception the district must pass a preliminary budget by Feb. 16. Melone said that requesting an exception would allow the district to make changes to the budget before the final version is adopted later this summer.

Applying for the exceptions does not automatically mean the district will receive approval, Melone said. The filing will be done for the district by its business management firm in March, which is the earliest the district can apply.

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