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About
a third of the increase will be money budgeted to pay for
improvements to athletic fields at several school, increased
spending for maintenance, a safety and emergency notification
system and increases in the cost of energy. Temporary increases
in the operating tax rate ceiling to pay for those things was
approved overwhelmingly by voters at a referendum in May.
As
Delaforum previously reported, the school board already has
approved a 12¢ increase in the rate at which property tax
due by Sept. 30 will be calculated. The total rate is $1.4365
for each $100 of assessed property value. Brandywine does not
give residential property owners the state-financed tax
reduction as most other districts in the state do. Seniors do
get a reduction, also state-financed, paying half of the first
$1,000 of their tax.
The amount earmarked to be spent
implementing elements of the district's long-range strategic
plan will be increased by $510,000. Of that, $500,000 will be
used for "early aggressive recruitment of high-quality teachers
and staff." That could be offset to the extent that the number
of state-authorized positions are sufficient to eliminate the
necessity to hire into positions financed entirely by local
money.
The other $10,000 in plan-related
money will go initiating an International Baccalaureate program
and increasing the number of students taking courses which
qualify them for advance placement in college.
The proposed spending plan, which the
school board is expected to approve at its monthly
business meeting on Jul. 18, contains no significant initiatives
beyond those presented at the referendum. Adoption of a
preliminary budget establishes a level of spending to begin the
academic year. A final version of the budget will be approved in
November or December after the amount of state financing,
particularly for salaries and benefits, is
determined.
To balance the budget, the district
will dip into its accumulated cash balance by $1.5
million, leaving an estimated $3.1 million on hand next June 30.
Financial officer David Blowman
previously has said the district will be in a tight financial
position for this and the 2007 fiscal years. At the last full
tax referendum the board committed to not returning to the
taxpayers until the spring of 2007. If that holds, it means the
district cannot raise the base rate before fiscal 2008.
Property taxes account for nearly 90%
of discretionary local revenue, which, in turn, accounts
for 39% of Brandywne's income. The state provides 53% of total
revenue and federal financing amounts to 8%.
The preliminary budget is based on an
expected enrollment for the coming academic year of 10,683
students, down slightly from 10,723 in 2004-05. The count, on
which the number of state-authorized teacher and staff
positions is based, is taken as of Sept. 30.
Savings as a result of Brandywine
withdrawal, effective Dec. 31, from the consortium
operating the Data Service Center will be offset by the cost of
gearing up for in-house handling of data processing previously
provided by the center. But Blowman said savings in future years
will be significant.
Mandated increases in the pension
rate for state employees is cited as a matter of concern as is
the continuing requirement that districts return a portion of
their state financing while the level of that financing is not
increasing.
Although the General Assembly did not
increase the cost-per-square foot formula for school
construction for which the district had hoped, Blowman said the
district will receive just under $1.2 million of additional
state money toward expansion of Lombardy Elementary and
replacement of Brandywood and Lancashire Elementary under a law
enacted by the Assembly to assist districts deal with rising
construction costs.
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