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Current millage of 16.2283 would increase to 17.8283 in the tentative spending plan.
HANOVER TWP. — Richard Letoski of Hanover Township challenged the Hanover Area School Board on Thursday to come up with a budget that doesn’t include raising taxes.
The district’s preliminary budget for the 2011-2012 school year includes a 1.6 mill increase that, if adopted, means that for a property with an assessed value of $100,000, the increase would be $160. A mill is a $1 tax for every $1,000 in assessed property value.
The current millage of 16.2283 would increase to 17.8283.
The tentative budget is based on the estimates of anticipated revenue and expenses for the 2011-2012 school year. Several factors affect the budget such as an 18 percent increase in health insurance and a 3 percent increase in pension fund costs for district employees.
The district owes a debt of $28 million, which was borrowed more than 20 years ago to fund infrastructure improvements, the board said. Each year, the district must pay back $2.8 million towards the debt.
Through refinancing over the years, the district was able to keep the yearly payback amount much lower to hold off raising taxes.
Board President John Pericci said everything possible is being done to look for additional revenue sources as well as cutting expenses. He said the budget is being picked through with a “fine toothed comb” and spending cuts will be made across the board.
“I can’t make $28 million go away,” he said.
“Trying your best isn’t good enough,” Letoski said. “Right now you have to do something. If you don’t want the job, then get off the board. It’s your problem and it’s up to you to straighten it out.” Letoski said.
“People that work their butts off for their home” would be hurt the most with a millage increase, he said.
District Solicitor George Shovlin pointed out that the shortfall was $3 million a couple of months ago.
“We were able to knock that down a million or less,” he said. “Our goal is to keep whacking that number down every opportunity we can. We’re exploring all avenues.”
Addressing suggestions to lay off teachers, board member Frank Ciavarella, Jr. referred to a state law that bars districts from laying off teachers unless there are three years of declining enrollment. Board member Evelyn Evans reminded everyone the funding cuts, which affect every district, came from the state and federal governments.
“We’re at the bottom of the food chain,” Evans said. “We don’t want to raise taxes. That’s the last thing we want to do is hurt people, but we have to educate the children. The government is putting the burden on us.”
The board has until June 30 to finalize the budget.