The Kennett Consolidated School District Board discusses coping strategies to keep above water for the 2012-2013 school year
By P.J. D’Annunzio, Staff Writer, KennettTimes.com
Cutting free school bus service is among the options being mulled as the Kennett Consolidated School District attempts to close a budget deficit.
KENNETT SQUARE — Many of Pennsylvania’s districts are feeling the fiscal pinch these days due to Harrisburg’s tight purse strings. Even districts such as Kennett Consolidated School District — which has a better tax base than many districts in the area — are considering increasingly desperate measures in order to stay operational.
KCSD, like many of its neighbors, has been hit hard by losses in local real estate taxes, both with interim and transfer taxes dwindling to low numbers — and property reassessments, which have lowered the local tax base.
To compound this problem, changes in billing practices by Independence Blue Cross—resulting in higher than anticipated health care insurance costs for faculty and staff to the tune of $465,000 — leaves the district finding itself with a much more difficult financial situation than expected even just a few months ago.
District Business Manager Mark Tracy indicated that through certain actions the district was able to stem some of the bleeding, however, the increase of revenues and the moderate decrease to the deficit did not come without sacrifice.
“We’re not in a position where we’re trying to save a few dollars here or there,” KCSD Superintendent Dr. Barry Tomasetti said, “We’re looking at survival. We have to think about the long-term.”
The effort to reduce expenditures has resulted in some of the following measures:
● Elimination of a middle school level Special Education position; this occurred after the retirement of the former occupant. Duties are currently being performed by a long-term substitute teacher.
● Re-assignment of a Bancroft Elementary teacher to a long-term substitute position.
● Elimination of six student-worker technology positions. These positions consisted of computer lab monitoring duties.
● Reduction of the summer maintenance crew by 50%.
● Reduction of $75,000 in capital improvement projects.
● Possible reduction of full-day kindergarten at Mary D. Lang to extended half-day sessions.
● Implementation of an energy curtailment plan; in times of high energy demand the district will pull its facilities off the power grid, thereby allowing the district to receive credit from the power company.
KCSD is also considering the implementation of an athletic/band participation fee in order to bolster its coffers.
“The option that we have recommended is $40 per student per season,” Tracy said, “At the high school that will generate approximately $37,240 and at the middle school approximately $17,000.”
Some members of the Board expressed concern that the introduction of a fee would drive both potential and veteran players and musicians away; however, the general consensus among KCSD Board members was that its implementation was necessary due to the extreme financial duress the district currently faces.
In addition to the implementation of the activities fee, the Board also considered modifying the district’s current busing arrangement. While not at the decision-making phase, the Board mulled over the possibility of eliminating busing at the high school, middle school, or elementary school level. The alternative would be to offer a pay-to-ride system for those opting to take the bus.
As a parent I think charging for sports is fine ~ from what I understand KCSD is one of the few districts that doesn’t charge right now. However, what about all the free/reduced kids we have? There is a large percentage of kids who get free/reduced lunches, free dentist and doctor visits, and free after-school care, with free snacks provided. Is anyone going to made these kids pay for sports or school buses? I doubt it. I have a feeling the revenue generated by these fees is going to be a lot smaller that they are projecting.
Ray obviously doesn’t have a clue how much effort or energy these teachers put in on a daily basis. If he met some of these kids the teachers have to deal with (not to mention the parents!!) I’m sure he would agree they deserve twice that much.
Ray, there are these things statisticians call “outliers”. If you have a handful of teachers that have been in the disctrict and teaching for 30+ years, it will drive the average up. Reading through your multiple comments, it sounds as though you believe the only reason KCSD is having financial difficulties is because of the teacher salaries which couldn’t be more misguided.
Matt,
Thank-you for re-typing Mr. Knauss’ excellent comment about the generous teachers union pay raise. I enjoyed reading it even more a 2nd time.
Average 2011-2012 salary for KCSD union teachers: $72,000
Not bad for 10 months of work.
I’m sure every one of the 26 million unemployed Americans would love to have that gig.
Ray, and what is it that you do? and your salary? and what time do you finish work? I know I can contractually leave at 2:50, but I stay well past that and spend several hours at home working.
“What hasn’t been mentioned as a major factor in Kennett’s financial crisis is the generous teacher’s contract negotiated in 2008 granting 4%+ salary increases each year for 4 years.”
Keith, you sound like you have no idea that there has been a freeze on the “increases” since the contract negotiations. And do you have any idea what the teachers are paid in the district. They shape the minds of our youth and in my opinon, aren’t compensated enough. The salaries are public knowledge so I suggest you do your homework before you make idiotic statements like this.
Thank you – matt! All you teacher haters have no idea how hard the teachers work to make productive, educated citizens. Until you have taught and know the commitment of the KCSD staff – shut up!!
Hi Matt,
I’m well acquainted with the Kennett Education Association contract. Everyone can see it at this web site.
http://www.publicschoolspending.com/pennsylvania/kennett-consolidated-sd-teachers-contract-2007-12/
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I suggest you check with the union leadership to understand the average salary increases granted under the current contract. Here they are:
2009-10 4.3%
2010-11 4.2%
2011-12 4.1%
These percentage increases are salary alone and do not take into account health care increases and retirement contribution increases. A conservative estimate of compensation (salary plus benefits) increases would be above 6% per year.
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I’m not trying to minimize the important influence teachers have on our children nor am I trying to minimize the hard work of teachers. What I am trying to do is to let everyone know that 6% compensation increases are not sustainable and will result in (have caused) furloughs, demotions, program cuts and/or increased class sizes.
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I’m curious what you mean by, “there has been a freeze on the “increases” since the contract negotiations.
Before they know, the taxpayer becomes a boiled frog.
Add to this the automatic step increases that the teachers union members get every year on top of the collevtively bargained annual raises and you have a tried-and-true fiscal recipe for disaster.
Greed-creep of collective bargaining.
The elephant in the room is the creed-creed of labor union collective bargaining.
Until new laws are passed in the General Assembly to control costs, nothing will change.
A 20% compounded salary increase over 4 years for the teacher’s union is utterly outrageous.
2012-13 Kennett Middle School will have their first season with a football team! Where is that money coming from? What is the expense?
I am all for Football at the High School level but there are already leagues for Middle schoolers.
The Real Person!
The Real Person!
Middle School football is being funded by the players/parents. I’m told no district money is going into the effort.
If I remember the regulation correctly, the state requires the District to bus any “in-District” students attending private/parochial schools as long as buses are provided for students attending KCSD. If free busing were eliminated at just the high school level (which I suspect is also the level where the majority of private/parochial bused students are coming from) – what would that savings be? Are they considering a modified option: eliminating free buses w/in a certain radius of the school?
A few clarifying comments on the source of Kennett’s financial problems.
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Kennett’s tax revenue will not be “down”. Yes, transfer taxes and interim taxes will be lower and properties have been reassessed lower, but the proposed millage rate increase will more than compensate. Local tax revenues will be up by $947,000.
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Pension costs will increase dramatically, but it’s inappropriate to place the blame on “changes made by the legislature to pension funding in 2001”. Certainly, the legislation of 2001 is a contributing factor, but the major factors are the market downturns of 2001-2003 and 2007-2009 that shrunk the PSERS retirement fund.
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What hasn’t been mentioned as a major factor in Kennett’s financial crisis is the generous teacher’s contract negotiated in 2008 granting 4%+ salary increases each year for 4 years.
Did the district ever consider going after the people who dont pay school tax but still have their children going to the schools …. and many of which receive free or discounted meals and special services. The taxpayer who is retired still pays the full amount and is in a low income bracket as well, but not reaping any benefits. A new payment system needs to be implemented! ANY person who has children in the public school should pay SOMETHING in the form of a school tax. Many people rent their homes, thus eliminating this tax, and making it tougher for the tax payer whose taxes keep getting raised!!! Lets figure this out …. you are highly educated, highly paid people!!!!
The Real Person!
The Real Person!
Grace,
A couple of things you seem to be missing:
1. Renters pay their taxes through rent to their landlords, who then pay taxes — property tax is always figured into the rents anyone charges. So that’s covered.
2. As for continuing to pay taxes long after your children have left the school district — if you had one child in the district on average, you would have to pay taxes for about 30 years to cover the cost of that education. To suggest that retirees not pay into the system once their kids are out is little like suggesting that workers only pay into Social Security after age 50. For either Social Security or our schools to work, contribution has to be widespread and consistent.
3. The Kennett school district like all of its neighbors are taking less money now than in recent years, causing the financial problem. Tax revenue is down — real estate values have fallen, transfer taxes have dried up and reassessments have shrunk the tax base, meaning even increases in tax rate mean less overall money. Add in two straight years of cuts in state aid mixed with an explosion in pension costs (caused by changes made by the legislature to pension funding in 2001). In effect, the governor and legislature transferred a great deal of tax burden onto local property owners to solve its own fiscal crisis.
While the “smart” people at KCSD clearly are working with the situation the best they can, many of the issues are beyond their control. You may want to contact your state legislators and ask them about it, however.
And don’t forget in Kennett, that Kennett ownship receives half of the Earned Income Tax, which if not taken would go to the School District.
Why are they not considering a tax increase to cover this shortfall? Big tax increases aren’t fun for anyone, but everyone’s home value will decrease if our district starts decreasing in quality.
The Real Person!
The Real Person!
They are raising taxes to the state Act 1 limit (plus exemptions — which were approved today by the state Department of Education). They would have needed to file for a referendum (an iffy proposition at best) to raise taxes higher. Districts such as Kennett are caught in a perfect storm of declining local tax revenue (thanks to the lousy real estate market and reassessments) and cuts in state funding — and fairly significant increases in pension costs.
At a time when the pension hit is likely (and I’m estimating because I don’t know the actual number) is above $500,000, the change in billing by Independence Blue Cross really hurts.
On the pension and Act 1, you need to ask your local state legislators — I know Chris Ross voted for both measures — what, if anything, they’re doing to solve the issue.