By RODNEY L. SHERMAN
Staff writer
KNOX – What the government gives, the government can take away – as Gov. Tom Wolf’s proposed budget demonstrates for Keystone School District.
District superintendent Shawn Algoe told school board members this month the governor’s proposed budget includes $100 million “new dollars” for basic education funding across the state and Keystone’s share of that “new money is approximately $53,000.
A total of $25 million in “new money” for special education could mean an additional $12,600 for Keystone.
If the governor’s budget were to pass unchanged, it could mean an additional $65,000 above last year’s state funding level.
But then comes the take away.
Wolf’s budget also calls for changes in public school transportation funding – cutting $50 million from that portion of education funding.
Keystone’s share of the transportation cut? About $59,975, for a net gain of about $5,000 to $6,000.
“I want to stress, these are very preliminary numbers,” said Algoe. “But we are getting into some serious budget planning now.”
Based on past budget impasses, funding cuts, funding re-assignment, late funding and other issues, Algoe said he and district business manager Vern Lauffer are planning next year’s budget with no increased state funding.
“They have looked at this transportation thing before – they’ve tried this before, and it’s a very complex animal,” said Algoe. “I’m not really too concerned about it at this point, but I want to make the board aware of what’s going on down there (in Harrisburg).”
Required bids for bus service?
Algoe also advised the board of a change in transportation policy that will require school districts to put their bus service out for bid.
Keystone uses a mix of several bus owners, each with their own contract. All of the owners, many of whom are also bus drivers, are local residents.
Last May, state Auditor General Eugene DePasquale pointed out school districts spent $54.8 million in excess of the Pennsylvania Department of Education reimbursement.
DePasquale called on the General Assembly to require all school districts to seek competitive bids for student transportation services.
DePasquale said, “Since 2013, our audits have identified 19 school districts in 11 counties that paid $54.8 million more than the state transportation reimbursement.
None of those schools were in Clarion County.
‘Elimination’ not what it seems
Algoe also updated the board on the “Property Tax Independence Act.”
Algoe said the title of the act is appealing to property owners.
“The problem is, it’s not really property tax elimination,” said Algoe.
Under the plan, property taxes would be reduced, but the money collected would go to state coffers and from there it would be redistributed according to state funding formulas.
Sales and income taxes would be increased to make up the difference in reduced property tax collections.
“And the majority of that money would go to Philadelphia, Erie, Harrisburg and Pittsburgh,” said Algoe. “All the gains we’ve made in rural school funding lately would go right out the window.”
Algoe an independent study of the property tax independence act found if the plan was in effect this year, the state would be facing a $14 billion education funding shortfall.
Algoe said there hasn’t been much movement on legislation to enact the property tax independence act but he would keep the board updated on the matter.