Selinsgrove Area School District - Budget

Budget

In January 2012, School Board President, Paul Spiegel announced the administration is developing a restructuring plan to reduce district expenses. The district faces a shortfall of over $1.04 million after it raises property taxes above the Act 1 index limit. The district reports that personal costs are rising substantially including: a 3.7% increase in salaries $644,000; a 48% increase in pension/retirement costs for $737,000 and a 10% increase in health insurance costs $385,000. The teachers declined a pay freeze for one year to head off the cuts until the economy improves. Selinsgrove Area School District teachers, as a group, are the highest paid in the four county area.

In May 2011, the district administrators agreed to a one year pay freeze as did the staff. Most of the district's 213 teachers also did not receive the scheduled 2.5% raise, although they did receive step raises and longevity based raises. It was reported that these salary freezes saved over $750,000 in the 2011-12 budget. Other cuts were made in the teacher's five-year contract including eliminating several district continuing education programs and summer teacher pay for work. The district staff and administration also worked a 4 day week for the summer months. The board also eliminated the positions of 8 retiring employees.

For the 2012-13 school year the district faced another $1 million budget shortfall. The administration reported that earned income tax revenues were down $200,000. A mill is $245,000. A significant number of commercial properties have successfully appealed their property tax assessment. This has meant an over $300,000, decline in property tax revenues. The teachers' union rejected making any contract concessions. In addition to the payment to the state teacher pension which will increase by $450,000, the district pays for social security for each employee and pays for the health insurance for 71 retired teachers until they qualify for Medicare at a cost of $736,920 a year. The Board unanimously approved restructuring the district eliminating 17 teacher positions and saving an estimated $789,000.

In 2007, the average teacher salary in the district was $59,654 for 184 days worked. In 2007 the average teacher salary in Pennsylvania was $54,977. As of 2007, Pennsylvania ranked in the top 10 states in average teacher salaries. When adjusted for cost of living Pennsylvania ranked fourth in the nation for teacher compensation. Additionally, the teachers receive a defined benefit pension, health insurance, professional development reimbursement, paid personal days, paid sick days, life insurance, retirement bonus and many other benefits. According to Rep. Glen Grell, a trustee of the state teacher retirement fund, a 40-year Pennsylvania public school educator can retire with a pension equal to 100 percent of their final salary.

In 2008, the district administration reported that per pupil spending was $11,176 which ranked 381st among Pennsylvania's 501 school districts. In 2010, the per pupil spending had increased to $12,344.84

In 2009, the district reported that 73 teacher's salaries were $73,000 or more. The maximum teacher salary was reported at $133,227.

Selinsgrove Area School District Administrative costs per pupil in 2008 was $597.63 per pupil. The lowest administrative cost per pupil in Pennsylvania was $398 per pupil. In May 2008, the school board renewed the five-year employment contract of Dr. Fredrick Johnson, superintendent, which included a base salary of $130,569.98 and an extensive benefits package. His salary was increased to $147,350 by January 2010. In May 2010, he unexpectedly resigned effective June 30, 2010.

SASD employed 350 people in 2007. Two hundred of the employees are teachers. Seventy percent of spending is allocated to employee costs. The district reports spending $9,800 per pupil in 2007. Jeffrey Hummel, district business manager, cites costs for building projects coupled with salaries, transportation costs and increased charges for energy, as necessitating continued substantial property tax increases.

Reserves In 2008, the district reported an unreserved designated fund balance of $1,630,000.00 and an unreserved-undesignated fund balance of $1,898,597.00. In 2010, the reserves were reported as: $2,571,713 in the unreserved designated fund and the undesignated fund was $1,726,369.00 or a total of $4,298,082. in 2011, the District's reserves were reported as $3,071,713.

The District provides space to Selinsgrove Children's Center to provide a preschool in the Selinsgrove Area High School building, leased for free to SUMCD.

The district is funded by a combination of: a local income tax of 1.6% on only earned income, a property tax estimated revenue in 2010-11 of $13, 214, 282, a real estate transfer tax - 1%, 2 per capita taxes of $5 each, various grants, coupled with substantial funding from the Commonwealth of Pennsylvania and the federal government. In Pennsylvania, pension income and social security income are exempt from Pennsylvania personal income tax and local earned income tax, regardless of the level of income.