Board considers discount for residents who pay bill
Plum Borough School Board's 2008-09 budget will not include a tax increase and it probably won't include a tax decrease either.
After an audit of the 2006-07 budget revealed that the district had over-budgeted by about $3 million in each of the last two budgets -- one of which included a tax increase -- some residents have been asking board members to reduce the millage.
Resident Andrew Drake asked the board to reduce the millage from 22.2 to 21.2.
Residents who pay early already receive a 2 percent discount. McGough's proposal would add a 4 percent discount to all taxpayers regardless of when they send in their tax bills. Early birds would get the benefit of a 6 percent total discount.
"We have this discount for this year," McGough said. "If we cut the mill it's gone forever."
"You shouldn't have had it (one mill) in the first place," Drake said. "You should cut it. Then if you need to go back the next year, you make the case that you need to add 1 mill when you actually need it."
McGough said the district needs financial stability, "as noble as it is to drop a mill."
The 4 percent discount would amount to about $89 for each $100,000 of assessed value. A 1-mill decrease would knock about $100 off of the tax bill for each $100,000 of assessed value.
Business manager Gene Marraccini told the board he has no projections on the 2007-08 budget and whether there will be a surplus for the third year.
"I think we'll break even this year," Marraccini said.
In the 2008-09 draft of the preliminary budget, Marraccini plans to balance the budget with $441,616 of the $6.6 million fund balance.
McGough said the revenues and expenditures, which have created surpluses for two years, have caught up to each other and evened out in this year's budget.
McGough and Marraccini cited increases of $1,043,000 in salaries, $200,000 in the fuel budget, $270,000 in healthcare and an anticipated decrease of nearly $600,000 in investment revenues as some of the reasons continued surpluses aren't expected.
The board wants to eliminate the activity fund in the 2008-09 budget. Members are at odds over whether to completely eliminate the fund as a line item in the budget or to just reduce the fund to $0.
Board member Linda Eazor said she wants to keep the fund as a possibility so that future boards could use it if it's needed.
"It will be difficult for future boards to get it back in the budget if they need it," Eazor said.
On Monday, the board will consider creating three positions at the education committee meeting at 7 p.m. in the high school library classroom.
Those positions are not included in the draft numbers for the preliminary budget. Adjustments to the budget will be discussed at a finance committee meeting Tuesday, which will follow a transportation committee meeting at 6 p.m. in the high school library classroom.
The board will vote to approve the 2008-09 preliminary budget Wednesday at 7 p.m. in the high school auditorium.
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With gas prices fast approaching $ 4 per gallon and food and other consumer goods costs rising accordingly it is becoming increasingly more difficult for the average resident to make ends meet. Then when you add unnecessary activity fees and over tax your constituents it is even more difficult.
The Plum School Board failed miserably in it's attempt to appease the taxpayers of Plum. By offering a discount the equivalent of 1 mill if we pay our property taxes early is an insult. If the allotted $1 million is about the equivalent of 1 mill then what about the additional $5.6 million, or 5.6 mills, that has been accumulated over the past two years.
I've read no mention about eliminating the $50 activity fee or what they plan to do with the remaining surplus. Of course the revenues and expenditures will even themselves out in the new budget year as this surplus will surely be spent. The question is how will it be accounted for? What will the taxpayers see within the school district as a result of their sweat over the past two years?
There clearly is no balance here and the scales have clearly tipped in favor of the School District.
This truly is an insult to the citizens of Plum.
I agree with the previous comment. The citizens of Plum Borough should take a good hard look at our school board and their very tall tales!
Mr. McGough said he favors a discount; that is, if you pay early or within the normal discount period. If you don't pay within this period then you get no discount or rebate. Therefore, those citizens having to pay in payments because their taxes are more than they can afford continue to pay high taxes. This is a real scam Mr. McGough and you certainly aren't being fair with our citizens! Now let's further examine your statement that you'd rather offer a discount than reduce the taxes by one mil because it's too difficult to get that one mil back if its needed.
Every citizen of Plum witnessed seven years of tax increases sponsored by this very board. The millage was raised each year as plum citizens begged the board not to increase taxes further. These requests fell on the deaf ears of our school board. What is worse, these tax increases were fraudulently obtained because the school administration was padding the budget in the amount of $400,000 to $700,000 each year without the taxpayers knowledge. These tax increases came very easily so why, Mr. McGough, are you saying they are difficult to get now???????
It is time for the citizens of Plum to wake up and do something about the school board that continues to abuse us. This abuse has come under the continuous leadership of President Matthews who has served well in excess of his Presidential Term Limits. This makes one wonder, is he trying to become dictator of our school board? God forbid! Also, what happened to the nineteen extra positions that we had two years ago and never reduced them. And now, the board wants to hire more people!!!!!
Everyone should attend the next financial committee meeting if they are concerned over the tax situation in Plum. Check the Plum School website for the next financial committee meeting and attend to let your voices be heard. This school board has shown us that they are not representing the citizens of Plum; rather, they are manipulating the information being issued at these meetings trying to keep all of us confused so they can continue to exert their power and serve their hefty ego's.