Property owners in the Allentown School District can expect to see their taxes go up for the sixth consecutive year.
Administrators presented a 2015-2016 preliminary proposed budget that includes the district once again applying to the Pennsylvania Department of Education for exceptions to exceed the Act 1 index for the district, which is currently at 2.9 percent or .5315 mills, in order for the district to have enough money to produce a balanced budget.
During Thursday night's Finance Committee meeting the district's Chief Financial Officer Jack Clark informed directors the district will need to raise taxes by 4.4 percent or .8065 mills.
However, this alone won't be nearly enough money to make ends meet for the district, which will also have to raid its fund balance to completely close a $10.5 million deficit in a nearly $269 million proposed preliminary budget.
If there is a silver lining in Thursday night's news, it is that after putting more than 400 people out of work during the last four budget cycles, administrators do not have any planned furloughs this time around, for the simple reason that they simply can't afford to not afford them.
However administrators stressed several times during the presentation and in written documents, that the 2015-2016 budget "will be a work in progress up to and possibly including June 30,2015, which is the final day to adopt the final budget."
As if that news wasn't deflating enough, Clark's budget projections over the next four years find the district simply unable to produce a balanced budget.
Starting in Fiscal 2017, he estimates the district will have depleted all of its reserves and even including index tax increases on property owners of 2.9 percent in the Fiscal '17, '18, '19 and '20 years, it won't be nearly enough to keep the school solvent.
"These are numbers no one can pay," said Director Scott Armstrong after the presentation. "What are we supposed to do?"
Noting that during his time as a director, the board "has been frugal" and that "clearly we've done our job," nothing ever seems to get any better when it comes to budget season in the Allentown School District.
"Taxes have gone up dramatically," Armstrong added. "They're (property owners) paying more and getting less."
Starting in Fiscal Year 2011, the district has raised taxes on property owners by 6.17, 5.46, 2.6, 5.54 and 5.85 percent during the last five budget cycles.
Armstrong added that all the district is ultimately doing by raising taxes so drastically is driving businesses out of the city and squeezing more money out of low-income earners.
"We can't keep raising taxes and we can't keep furloughing teachers," deduced President Robert Smith of the situation..
Clark said the district is not to blame for its tale of fiscal woe and that the problems are "out of our hands."
He said the district's top two problems are skyrocketing charter school and Public School Employees' Retirement System (PSERS) costs.
Comparing the 2015-2016 preliminary budget to the current 2014-2015 budget, charter school costs are expected to rise by more than $6.1 million alone, with PSERS costs hitting the district up for an additional $4.5 million.
Clark added there has to be some type of charter school reform in Harrisburg and that the district also needs more money coming in from the commonwealth.
Smith added that the local Pennsylvania delegation needs to find a way to bring more cash into the Allentown School District.
Superintendent C. Russell Mayo added that additional funding for education, with Gov.-elect Wolf having to work with a Republican-controlled legislature, might be a challenging proposition.
During a video presentation that featured Mayo prior to the budget discussion, the superintendent said "we are making progress...if we continue to be frugal." He added that "every effort will be made to avoid furloughs.." but added that he "could not promise" the district will actually avoid more layoffs this year.
He said the district's "recession-exit strategy" included the ASD Virtual Academy, working with the local delegation of legislators to procure more money, implementing additional cost-saving measures and improving customer service, among others.
In other news Thursday night, the district provided directors with the scores earned by its schools in the Pennsylvania School Performance Profile for the 2013-2014 school year.
The SPP scores reflect student achievement and growth across all subject areas.
Data from these scores are analyzed to identify areas of strengths and weaknesses for the district, which will assist in planning and implementation in the areas of curriculum, assessment and instruction, according to the district.
Three of the district's four middle schools - Raub, Harrison-Morton and South Mountain - saw their SPP2014 scores lower when compared to their 2013 marks
Both high schools - William Allen and Louis E. Dieruff - also saw their SPP scores decline during 2014 compared to the year previous, although graduation rates at both schools improved in 2014 compared to 2013.
A total of eight of the district's 14 elementary schools saw their SPP scores rise in 2014 from the year previous.
Prior to the committee meetings, Smith was re-elected to the position of president of the board, while Ellen Bishop was elected vice president.
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