Deficit To Get Millions Worse In Future, Reading City Council Told

A 1947 topographic map of the Reading, Pennsylvania area. (Photo credit: Wikipedia)

City Controller Christian Zale on Monday pressed his case, again, to City Council: Unless the city makes some drastic changes, it’s facing a $35 million cumulative deficit by 2017.

However, those changes can’t include bigger property tax hikes; Zale said his projection already assumes the city raises the property tax by 5 percent in each of the next four years.

But he said the tax increases cut the deficit by only $10 million.  Without them, the deficit rises to $45 million.

“Me being conservative, I tried to be as gloomy as I could,” Zale told council.  ”And quite frankly, I don’t want to hear (that) we’ll approach that and try to solve it when that time comes.”

Read more:  http://readingeagle.com/article.aspx?id=479276

‘Catastrophic’ Budget Laid Out By Philly Schools

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If the “catastrophic” budget picture Superintendent William R. Hite Jr. laid out Thursday comes to pass, Philadelphia schools would be virtually unrecognizable come September.

There could be no money for counselors or librarians. There might be no sports or extracurricular activities. No dedicated funds for secretaries, aides, or summer school would be provided. And that would follow the steep cuts made over the last two years.

There also could be 3,000 layoffs, including some teachers.

This doomsday scenario comes as a result of a deficit of more than $300 million in the district’s $2.7 billion 2013-14 budget. Officials have asked for $120 million in additional funding from the state and $60 million from the city, as well as $133 million in concessions from labor unions.

Read more:  http://www.philly.com/philly/education/20130419__Catastrophic__budget_laid_out_by_Philly_schools.html

Reading On Course For $35 Million Cumulative Deficit By 2017

A 1947 topographic map of the Reading, Pennsylvania area. (Photo credit: Wikipedia)

Reading is on course to amass a $35 million cumulative deficit by the end of 2017 even if it raises property taxes by 5 percent a year, controller Christian Zale told City Council on Monday.

The budget likely will be $1 million short this year and $1.4 million short in 2014, but Zale said the city’s own fiscal cliff comes in 2015, when it expects a $10.2 million deficit.

That will be repeated in 2016 with a $10.9 million deficit, and again in 2017 with an $11.4 million deficit, he said.

“Now is the time to address the 2015 cliff, (and) also ensure future decisions do not exacerbate these projected deficits,” he said.

Read more:  http://readingeagle.com/article.aspx?id=469810

Stalled Owen J Roberts Contract Talks Lead To Teacher Slowdown

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SOUTH COVENTRY — The stalled contract negotiations between the Owen J. Roberts School District and its teachers union has gone public.

The teachers have been working without a contract since June 30 and the two sides have been negotiating, quietly for the most part, for 15 months.

However the failure to reach an agreement about wages has raised the stakes and the rhetoric in the matter and the teachers union have instructed their members to work only to the specific language of the expired contract and cease all extra and voluntary activities.

School Board President Douglas K. Hughes reacted by issuing a letter to the district Tuesday, which was also   posted on the district web site, announcing that the teachers union had decided to “work to contract,” explaining they would “work only to the contractually obligated hours” and informing residents and taxpayers the union had asked their members “not to participate in any unpaid activities.”

Read more:  http://www.pottsmerc.com/article/20130328/NEWS01/130329308/stalled-ojr-contract-talks-lead-to-teacher-slowdown#full_story

Nearly 5,000 Pennsylvania State Workers Paid $100,000-Plus

HARRISBURG – Nearly 5,000 Pennsylvania state employees earned at least $100,000 last year, and more than one-third worked for one of the 14 state-owned universities or the system that oversees them, a newspaper reported Monday.

The number of employees with six-figure earnings has more than quadrupled since 2002, when 1,176 people fell into that category, The Patriot-News said in stories posted on its website.

“What you see is pretty much how recession-proof that (state government) sector may be,” said Lonnie Golden, a professor of economics and labor studies at Penn State University‘s Abington campus.

In the newspaper’s analysis of data from the state-government transparency website PennWATCH and the state courts, payouts for severance and unused leave time as well as job-related, non-salary income were counted as part of employees’ earnings.

Read more:  http://readingeagle.com/article.aspx?id=458306

Boyertown School Board OKs Preliminary Budget, Will Apply For Tax-Hike Exceptions

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Boyertown School Board members voted 7-1 to adopt a $95.58 million preliminary budget for 2013-14, but not without airing concerns about tax hikes.

Before passing the preliminary budget Tuesday, the board voted 6-2 to pursue exceptions to exceed the state’s Act 1 index, which would otherwise cap the tax increase at 2.1 percent.

Ruth A. Dierolf and Joseph Nichols voted against pursuing exceptions, which would allow tax hikes as high as 3 percent and 2.4 percent in Berks and Montgomery counties, respectively.

The increases would raise annual taxes on properties assessed at $100,000 by $67 in Berks and by $55 in Montgomery.

Read more:  http://readingeagle.com/article.aspx?id=452502

Pa. Budget Chief Says Pension Reforms Essential

HARRISBURG – Gov. Tom Corbett will “very likely” propose cutting future pension benefits for current school employees and state workers in the state budget plan he will present to lawmakers next week, his chief budget adviser said Monday.

Budget Secretary Charles Zogby, all but confirming a cost-cutting approach that the administration first floated last fall despite questions about its legality, said decisive steps must be taken to rein in taxpayers’ fast-growing share of pension costs.

“We’ve got to pay for our obligations and we need to look at a rebalancing of our pension obligations … if we’re going to meet our needs without inflicting deep cuts elsewhere in the budget,” he said at a Pennsylvania Press Club luncheon.

Read more:  http://readingeagle.com/article.aspx?id=446630

Pottsgrove School District Mulls $61 Million Budget With 3.3% Tax Hike

Location of Lower Pottsgrove Township in Montgomery County (Photo credit: Wikipedia)

LOWER POTTSGROVE TOWNSHIP— Facing a potential budget shortfall of $1.9 million, the Pottsgrove School Board voted unanimously Tuesday to advertise a proposed $60.9 million budget for the 2013-14 school year that would raise taxes by $155 for the average district homeowner.

However, those figures are unlikely to remain unchanged until June, when all final school budgets must be adopted.

The district is working under the constraints of Act 1, which requires a district to either declare it will not raise taxes above a state set index — as Pottstown did last month in committing to keep any tax increase at or below 2.4 percent — or advertise a preliminary budget.

The Pottsgrove board chose the second option, voting to advertise a preliminary budget presented publicly for the first time Tuesday night by Business Manager David Nester.

Read more:  http://www.pottsmerc.com/article/20130125/NEWS01/130129618/pottsgrove-mulls-61-million-budget-with-3-3-tax-hike#full_story

Scranton School Board Passes Budget With No Tax Increase

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Scranton residents will see one tax bill stay the same for 2013.

The Scranton School Board on Thursday night unanimously approved a $120.4 million budget that calls for no tax increase.

With a city tax increase of about 25 percent and a 4 percent increase in Lackawanna County taxes, Scranton school directors said they wanted to give residents a break.

Directors had been looking at a tax increase of 1.35 percent, but with interest rates for tax anticipation notes coming in lower than expected, finding additional health care savings and using $1.18 million in capital improvement money to pay down debt, officials balanced the budget.

Read more:  http://thetimes-tribune.com/news/scranton-school-board-passes-budget-with-no-tax-increase-1.1422154

No Pottstown Tax Hike Due, In Part, To 3-Year-Old Report Says Council President

Location of Pottstown in Montgomery County (Photo credit: Wikipedia)

Editor’s note:  And also due to the tireless efforts of Jason Bobst, Janice Lee and Dan Weand for fixing the broken accounting system.  Imagine what Pottstown could become if Council President Toroney followed the ULI Report recommendations!

POTTSTOWN — Borough Council President Stephen Toroney credited a 2009 consultant report on the borough’s finances for starting Pottstown down the road to what he considers a landmark achievement, that was made official Monday with the adoption of a $38.5 million that does not raise borough taxes for the first time in recent memory.

Councilman Mark Gibson, who, as a paid driver for the Empire Fire Company could be said to benefit financially by voting for the budget, which makes contributions to the fire companies, abstained from the vote.

But the budget, officially balanced at $38,530,729, otherwise received unanimous support from the remainder of council.

Read more:  http://www.pottsmerc.com/article/20121214/NEWS01/121219662/no-pottstown-tax-hike-due-in-part-to-3-year-old-report-says-council-president#full_story

Police Union, Pottsville City Council Share Ideas In Effort To Avoid Officer Layoffs

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Following a one-hour, closed-door meeting Thursday night, members of Pottsville Fraternal Order of Police Lodge 44 and the city council have come up with a few concepts that might save jobs, according to FOP President Brian Kotzmoyer.

“It was a very positive meeting,” Kotzmoyer said.

“Both sides realized we’re doing our best to try to avoid layoffs. The officers put forth some ideas about cost-savings initiatives and some things they can do to generate more revenue on our end,” said Councilman Mark Atkinson, who chairs the council’s public safety committee.

When asked for his thoughts after the meeting, Councilman Michael P. Halcovage, who chairs the finance committee, said: “We’re just throwing around ideas.  I can’t give you any specifics.”

Read more:  http://republicanherald.com/news/police-union-pottsville-council-share-ideas-in-effort-to-avoid-officer-layoffs-1.1413124

Taxes Set To Rise As Wilson School District Board Of Education Approves Budget

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The Wilson School Board on Monday approved an $87 million tentative budget that would require a 2 percent tax hike. The vote was 5-2.

The budget doesn’t require layoffs, furloughs or any program cuts, said Diane J. Richards, director of finance and support services. To balance the budget, Wilson needs to use $525,000 from reserves to cover higher pension contributions.

The 0.46-mill proposed property tax hike would increase the tax to 23.77 mills. The owner of a property assessed at $100,000 would see a tax bill increase to $2,377 from $2,331.

Read more: http://readingeagle.com/article.aspx?id=384861

Manheim Township School Board Will Raise Taxes

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In a near-unanimous vote, Manheim Township school board agreed to use the district’s full taxing power next year and raise property taxes by as much as 4.1 percent.

The decision followed a lengthy discussion focusing on the rising cost of pensions, special-education services and other mandated programs and the extensive cuts in educational programs and staffing the district has made to try to balance next year’s budget.

The cuts have helped narrow a projected $4.7 million revenue gap, but board members said any additional reductions would cause too much harm to students.

Township teachers last week agreed to a two-year salary freeze that is expected to save the district $2 million next year, and 25 teachers have accepted an early retirement incentive that could save another $1.8 million.

Read more: http://lancasteronline.com/article/local/630554_Manheim-Township-will-raise-taxes.html#ixzz1sbPwvfyd

Pottstown School District Preliminary Budget Has 4.2 Percent Tax Increase

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The problem with this PSD budget number is that it is above the 2.4 percent increase allowed by the state.  If Mrs. Adams can’t “whittle” down that figure any further, the board will need to ask permission from the state to make an exception and allow a larger tax increase.

The big picture here is that Pottstown Borough Council just passed a budget with a 1.68 percent tax increase.  Pottstown Borough and Pottstown School District occupy the same geographical area and the residents of Pottstown are not just getting one increase, but TWO.  Even if Mrs. Adams can get to the state mandated 2.4 percent increase, taxpayers are on the hook for a 4.08 percent increase.  I am guessing possibly higher.

As Councilor Rhoads has pointed out time and again, most people have a finite amount of money to work with each year.  With the current state of the U.S. economy, finding extra money is very difficult.  Pottstown has a large percentage of senior citizens on fixed incomes.  We also have a large percentage of low-income residents and residents below the poverty level.

People are having to make choices between food, heat, housing and taxes.  This is flat-out wrong.  This spending addiction pissing contest between the Borough of Pottstown and the Pottstown School District is killing the average Pottstown resident.  We are on the edge of the cliff staring down at the bottom of the ravine.  There is no where left to go except down in flames or move out of Pottstown, if that option is even available.  Many people are too financially strapped to even escape.

We do not need four fire companies nor do we need five elementary schools and two annex buildings.  Are we looking at job performance?  If we are not getting enough bang for the buck would outsourcing services make more sense?  We cannot afford all these salaries, benefits and pensions, which make up the lion’s share of both organization’s budgets.  We haven’t even felt the pain of the upcoming pension crisis with the school district. 

The economy is not going to improve fast enough to save the day.  We need long-term financial solutions for both taxing entities in this town.  Frankly, I am not seeing enough effort being made to address these very serious problems that impact 22,377 people by either entity.

Allentown Sees 42 Firefighter Retirements

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Allentown officials knew a staggering number of city firefighters would retire in 2011, it was just a matter of how many.

Fire Chief Robert Scheirer predicted months ago that some 50 firefighters would retire before the union’s contract that contained a generous pension clause was set to expire Dec. 31, echoing a similar mass exodus six years ago in the police department.

Now that the paperwork has settled, city officials say 42 firefighters left in 2011 — nearly one-third of the department usually staffed with about 140 firefighters. That’s by far the most firefighter retirees in one year, second only to the departure of 80 police officers six years ago.

Read more: http://www.mcall.com/news/local/mc-allentown-pa-firefighters-retire-20120104,0,7856335.story