School Board Adopts Budget With Average $235 Tax Hike

The average Lacey homeowner, assessed at $316,000, will see a $235 increase for the year or $19.58 per month after the Board of Education approved its 2013-14 budget.

The spending plan of $64,524,195 calls for a $41,210,651 tax levy and was approved by a vote of 6-1 at the school board’s public hearing Friday. The budget increases the local tax levy by 2.8 percent.

“If I were to vote no on this two years ago and it was going to the public for a vote, I can’t in my heart, personally, knowing that this would probably not get voted for by the public, I can’t support and vote yes on it today,” said board President Eric Schubiger, the lone vote opposed to the budget.

Schubiger also voted against the or approximately a $300 hike to the average homeowner.

Since the preliminary budget was introduced earlier in March, reductions have been made. To name a few, the district will be eliminating four teaching positions, one guidance counselor position, two secretarial positions and one administrative position for a savings of $675,000.

New initiatives including a full day kindergarten at approximately $250,000, random drug testing at $30,000, block scheduling at $50,000 to start and safe school programs remain.

The revisions to the proposed budget cut both the total operating budget and the tax levy by $854,400. As a result, the district will only need one waiver from the state for exceeding the 2 percent state mandated cap as opposed to two.

Although above the state cap, the district will not need a referendum to pass the budget since it moved elections to November and the state allows for 14 exceptions.

A waiver is being utilized to increase the budget $318,208 beyond the tax cap due to a rise in health benefit costs. There is an increase of 13.3 percent or approximately $750,000.

The board credits the significant tax increase to a reduction in state aid, increases in the cost of benefits, an increase in debt service payments and a decrease in revenue due to an $800,000 cut in the value of Solar Renewable Energy Credits.

“I believe that this was as low as we could go without a detriment to the students,” board member Jack Martenak said. Martenak continued to say that as a taxpayer, you don’t want to see an increase, but the board has to find a “balance."

Lacey residents Jessica Lotito and Leeann Holmberg were unsupportive of the tax increase but also believe the budget negatively impacts special education students.

“I’m not happy with the tax increase or the special education cuts,” Holmberg said, concerned that one-on-one speech therapy is threatened.

Special education instruction has a decrease of $250,312, although speech, therapy and related services were increased by $58,181.

Since the preliminary budget was proposed, the board eliminated a speech teacher, special education school psychologist, basic skills instruction teacher and a special education learning disabilities consultant.

“As a parent of a special education child, I wouldn’t mind the tax increase if it was benefiting my child,” Lotito said, adding that the cuts will be a detriment to those students.

Holmberg also said she is opposed to class size increases in third and fourth grade due to a full day kindergarten program and that teachers should pay more towards their benefits.

“There’s a time and a place where people have to step up to the plate,” she said.

All levels of government, including the Board of Education, need to stabilize and reduce, Schubiger said, adding that part of the problem in rising taxes is that the burden continuously gets shifted from one place to another.

“I’m saying no because of the madness of shifting the money around,” he said. “What we’re left with at the local level is looking at can we spend $3,000 on these textbooks.”

Schubiger has heard that the district doesn’t have a spending problem but a revenue problem and he doesn’t necessarily disagree with that philosophy.

“But going forward, as the revenue levels off, we’re going to have to look even closer at our expenditures,” he said. “The only way to truly stabilize and reduce budgets going forward is to reduce expenditures.”

Revenue, such as from the district’s energy initiative, which will barely break even in 2013-14, is designed for tax relief, not stabilization, Schubiger said.

“When I’m saying no, I’m saying no to a larger problem,” he said. “A vote for no on an increase on the tax levy is not a no against students or against our school district. I’m voting no because I think in the long term this is exactly what we need to do.”

One Lacey man told the board that the Lacey Food Bank supports more than 247 children, 15 percent of high school students and 16 percent of district students are offered free or reduced lunch.

“I understand it’s a tough decision but just realize how hard it is for us as parents to raise our kids,” he said with his young daughter at his side. “I’m completely for education but I just want that to be considered.”

He continued to ask the board to cut more.

To that, Schubiger added that Hurricane Sandy greatly hurt Lacey residents, and the full extent of the damage to the township's ratable base is still unknown.

“It’s short and simple,” Schubiger said. “The end result is, today, this town cannot afford this tax levy.”

Below are the figures for the 2013-14 budget. The budget is attached to this story as a PDF.

General Fund

Special Revenues

Debt Service

Total

2013-14 Total Expenditures

$64,524,195

$1,236,000

$4,414,550

$70,174,745

Less Anticipated Revenues

$23,313,544

$1,236,000

$1,495,503

$26,045,047

Taxes to be Raised

$41,210,651

$0

$2,919,047

$44,129,698

Budget Category

2010-11

2011-12

2012-13

2013-14

Local Tax Levy

38,379,406

39,413,121

40,090,630

$41,210,651

Total Local Repayment of Debt

5,065,599

5,122,788

5,028,138

$4,414,550

Total Operating Budget

57,593,870

64,642,232

64,216,897

$64,525,195

Total Expenditures

65,641,245

71,095,320

70,599,335

$70,174,745