School Board Approves 2006-07 Budget

The 2006-07 district budget, approved by the School Board on June 5, reflects the completion of the high school expansion and renovations projects, including the historic opening of Bayard Rustin High School in September.

Totaling $176.4 million, the budget represents an increase of 6.9% over 2005-06 expenditures of $165 million. The real estate tax rate to support the budget is set at 15.16 mills for residents of Chester County, or an increase of 0.84 mills (5.8%) over 2005-06. For residents of Thornbury Township, Delaware County, the real estate tax rate is 11.02 mills, or a decrease of 0.63 mills (5.4%) from 2005-06.

West Chester has historically levied the lowest real estate tax rate among all school districts in Chester County. It is important to note that it will retain that status with the 2006-07 budget.

It is also important to note that the millage to support normal operating expenses in the budget will increase by 2.2%, or well below the Consumer Price Index (CPI) increase of 4.4%. The remainder of the millage increase will fund the secondary school projects. Based on the average residential assessment of $183,000, $57 of the increase will fund existing programs and $97 will fund the secondary school projects.

Tax impact is below original estimates

The tax impact of the secondary school projects, phased in over time, will be slightly less than original estimates. Those estimates, when the district made the decision to move forward with the program in 2001, set the total cost to the average homeowner at an estimated $377. This amount was to be phased in over a 7-year period to prevent a one time, exceptionally large increase in taxes. As reflected in past district budgets and extending into 2007-08, the cumulative cost to the average homeowner in Chester County will be $366. This figure includes not only the three high school projects but also renovations to Fugett Middle School, just getting underway.

A carefully planned financing program and close oversight of the high school projects have enabled the district to come in below the estimated taxpayer cost. The district has also tracked every aspect of the high school projects to ensure a smooth transition to a third school and to maintain the integrity of the educational program at East and Henderson.

In addition, the administration has taken initiatives to reduce increases in normal operating expenses as much as possible. For instance the district has conducted cost benefit analyses of existing programs, negotiated fair and responsible labor contracts that include employee benefit cost sharing, and participated in joint purchasing programs to minimize the cost of supplies and utilities.

Transfers minimize increases in staff

Staff salaries have increased by $4.2 million, with $1.7 million of that driven by the opening of Rustin. While that increase is significant, the district has been able to minimize it by utilizing existing staff transfers as much as possible. As a result, most classroom teachers at Rustin are coming from existing secondary schools and only six classroom teachers are being added.

In the benefits area, costs are rising by only 8.6% instead of the double digit increases experienced in the general economy. These savings have occurred because all employees are now paying some share.

The cost of debt service has been minimized as much as possible by the district’s high Aa1 rating from Moody’s Investors Service. This rating has enabled the district to borrow money at the lowest possible interest rates.

Overall, the proposed budget builds upon the district’s reputation for educational excellence while taking into account the need for fiscal accountability. The historically low millage combined with the excellent reputation will continue to benefit the general health and welfare of the community.

 

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