Digging a Hole?

An Editorial by Adam Scaife

Is the current ASD School Board digging our school district into a hole with a hand spade or an earth excavator?


What is the state of the ASD pension fund contributions preparedness? It has been estimated that we will owe approximately + $25 Million DOLLARS to the pension fund over the next several years. There is currently a proposed state bill with respect to the pension fund contributions. "IF" it passes it will re-amortize the contributions over a greater number of years. They didn’t say that they were reducing the overall dollar amount owed, it’s still owed, it is just spreading it out over more years. Even if our payment contributions are half of what they were to be it is a huge cost that we will have to contribute each year over the next many years. What is our ASD board and administration doing to prepare for the looming pension fund contribution? Anything? Nothing? Surrounding districts are preparing for their contribution payments. Most of the surrounding districts are reporting that they are preparing now for their pension fund contributions with tax increases and some are using portions of their fund balance (savings account) now to alleviate the tax implications toward their current budget needs and pension fund contribution preparedness.

We’ve re-opened EHS and are paying for the re-staffing and facility operational budget out of the district’s fund balance (savings account). The re-staffing of this facility is an ANNUAL COST estimated at approximately $3.5 MILLION DOLLARS. This is being paid out of the fund balance this year so that taxes are not having to be increased this year. Could it also be that there would be an up-rising by the tax base if taxes were raised this year for re-opening this facility that will only graduate 30 students at this time next year? Perhaps this Fund Balance (savings account) money could have been used more wisely to alleviate the tax burden and implications once we do have to start making our payment contributions to the pension fund? There is currently a facilities study being done and an estimated cost being tossed around at approximately $18 MILLION Dollars to renovate Elderton. How will this renovation project be justified? Again, this is for a facility that will graduate only 30 students at this time next year.

This is an inequitable and unbalanced state of affairs that this current board is imposing on the entire tax base and to the entire student body of the district. How deep will this hole be that this current ASD board is placing our entire school district in?

Comparing South Butler and Freeport to ASD - What's our plan?

Captures from two articles one on South Butler Area School District (Knoch) and one on Freeport Area School District From the VND 05/06/10


South Butler: raising taxes 2mils (an increase of 1.5-2mils is needed each year over the nxt 3yrs to pay for the increased state employee retirement costs. (Old rate 87.675 / New Rate 89.675). On a 15k property (yeh how many of those are there?) It raises the bill $30/yr. So if u have a 150k property (much more likely) your taxes are going up $300/yr.

Freeport cut their budget and they still have to raise taxes:

Buffalo Twp: was 118mils to 119mils (on a 15k property (again, how many of these are there? Taxes r going up $15/yr or $150/yr on a $150,000.00 property).

Freeport / South Buffalo: was 51mils now 53mils on a 30K property (again, why do they use these numbers?) Will be an increase of $60/yr. On a $150,000.00 will be $300/yr.

So how is the ASD going to add 2Million in staffing costs, a 20yr payment program on 20million for revamping an under-utilized facility, pay for the pensions that are coming due, etc.? And they (ASD Super Six) say they aren't raising our taxes to do this? So there must be going to be severe cuts to programs at the other schools in order to support what they are saying.

Interesting Quote from the South Butler School Board meeting:

"Supt. Frank Prazenica shared a warning received from State Lawmakers, which urges caution because of the state's $1 Billion deficit. It said there is "no guaranteed level of funding" for school districts or any other entities under the 2010-11 state budget.”

South Butler said that they will have to do this each year for the next three yrs. (This is just to take care of the pensions). So their taxes are going up $900-1,000.00 or MORE per property over the next three years.

What is our ASD boards plan? Oh, we haven't seen one from our ASD board.

The Pension Plan

We are sure, by now, you have read Jennifer Willyard and Rebecca Fullerton's latest editorial in The Kittanning Paper.  In it, they discuss the Pension Plan Spike that is going to occur in the 2012-2013 school year.  We thought you would like to see some supporting documents.  We like to get the true facts to the public, we just don't make things up, we have documentation to back up everything we write about.

In addition to the documents below, we urge you to investigate this yourself at the PA Public School Employee's Retirement System (PPSERS) website especially this page, which discusses the rate spike.

Pension