PSERS Investments Exceed Expectations

Taxpayers and public school employees should expect some good news later this year when one of state’s major public pension systems releases its investment returns for the most recent fiscal year.

The state Public School Employees Retirement System, or PSERS, earned nearly 15 percent during the fiscal year that ended on June 30. A press release on the organization’s website Monday revealed the latest findings.

Exceeding the annual investment earnings assumption of 7.5 percent helps to ease the burden of the unfunded liability that must be made up in the future by some combination of future investment returns, contributions from workers and tax dollars.

Read more: http://lancasteronline.com/news/local/psers-investments-exceed-expectations/article_285ee46e-4e4c-11e4-b1be-001a4bcf6878.html

Geisinger Health System Freezes Open Positions

Map of Pennsylvania highlighting Montour County (Photo credit: Wikipedia)

Geisinger Health System this spring temporarily froze about 400 open positions, bracing for an estimated $50 million reduction in profitability in fiscal year 2015.

The decision reflects cuts in federal reimbursement payments and the health system’s effort to extensively evaluate each opening, officials said.

About 225 positions remain unfilled, with about 30 percent of those jobs located in Northeastern Pennsylvania, said chief human resource officer Amy Brayford in an emailed statement.

She said the openings span the entire health system, which serves more than 2.6 million residents across 44 counties in central and Northeastern Pennsylvania. Most of the positions do not provide direct patient care.

Geisinger Health System employs about 21,000 people.

Read more: http://citizensvoice.com/news/geisinger-freezes-open-positions-1.1714049

Philly Schools Facing $320 Million Deficit

English: South Philadelphia High School, taken from Broad Street, with snow in the foreground (Photo credit: Wikipedia)

FOR THE SECOND straight year, the Philadelphia School District is staring at a more than $300 million shortfall for the fiscal year beginning July 1.

That’s according to a lump-sum budget adopted last night by the School Reform Commission, which lays out broad projections of revenue and expenses. The forecast anticipates $2.8 billion in expenses, with $2.5 billion in revenues, leaving a deficit of $320 million.

“Based on our current financial picture, we are still left without adequate funding to provide even the most basic services for our students,” SRC chairman Bill Green said. “We are again in a position to ask for additional funding.”

Read more at http://www.philly.com/philly/education/20140328_Philly_schools_facing__320_million_deficit.html#P7Hcx2qtfSuo52VT.99

Owen J Robert SD Loses $2 Million A Year Under Lowered Coventry Mall Tax Assessment

Map of Pennsylvania highlighting Chester County (Photo credit: Wikipedia)

SOUTH COVENTRY TOWNSHIP, PA— The Owen J. Roberts School Board unanimously approved a real estate tax appeal settlement with Coventry Retail, LP, that lowers the assessed value of the Coventry Mall from $98 million in 2012 to $23.2 million in 2014.

The reassessment will equate to a loss of about $2 million a year in property tax revenues to the district.

In addition to the revenue loss, the agreement is retroactive to 2012, so the district will have to repay mall owners $1,619,799 of taxes paid in 2012, 2013 and 2014. In accordance with the agreement, $650,000 of that will be paid in cash within 60 days, according to attorney David L. Allebach Jr., who represented the board on this matter. The remaining funds will be credited to the mall against future taxes,

District officials had anticipated that cost and have reserved the full $1.6 million, according to district Chief Financial Officer Jaclin Krumrine. Therefore, the district has the $650,000 on hand to pay back the mall owner. The remaining nearly $1 million will help balance the 2014-15 budget to make up for the tax credit the mall will receive during that fiscal year.

Read more: http://www.pottsmerc.com/social-affairs/20140129/ojr-loses-2m-a-year-under-lowered-coventry-mall-tax-assessment

Reading School District Running Deficit Of Nearly $1 Million

Map of Berks County, Pennsylvania, United States Public School Districts (Photo credit: Wikipedia)

Four months into the 2013-14 fiscal year, the Reading School District is already running at a nearly $1 million deficit, the school board learned Monday night.

Robert Peters, chief financial officer, presented the board with a status update on the 2013-14 budget at a committee of the whole meeting.

He said unexpected increases in expenses and decreases in revenues have the district facing a $952,000 deficit.

Read more: http://readingeagle.com/article.aspx?id=517608

Reading Airport Approves $1.8 Million Budget

English: Reading Airport, Pennsylvania (Photo credit: Wikipedia)

The Reading Regional Airport Authority today approved an operating budget of $1.8 million that includes a buffer of only $38,000 for its fiscal year that began Oct. 1.

Board members also authorized airport manager Terry Sroka to plan the airfield’s 75th anniversary celebration next year.

Sroka said he plans to showcase the original City Hangar, now used by Millennium Aviation, by re-enacting the opening ceremonies in October 1939.

Read more: http://readingeagle.com/article.aspx?id=516536

Amtrak’s Routes Through Pittsburgh See Ridership Increase

Amtrak’s two routes with Pittsburgh stops saw ridership increases in the past fiscal year, according to ridership data the railroad announced this morning.

The Pennsylvanian, which runs between Pittsburgh and Philadelphia via Harrisburg, saw a 3.3 percent ridership increase, to 218,917, and a 12.4 percent gain in passenger revenue.

Pennsylvania Gov. Tom Corbett announced in March that the state would commit $3.8 million to keep the service operating in the coming year.

Read more: http://www.post-gazette.com/stories/local/region/amtraks-routes-through-pittsburgh-see-ridership-increase-707557/#ixzz2hiDUs3yx

Wilkes-Barre In Better Financial Shape Than Last Year

Map of Pennsylvania highlighting Luzerne County (Photo credit: Wikipedia)

WILKES-BARRE, PA — More than halfway through the fiscal year the city is in better financial shape compared to the same period in 2012, officials said Friday.

Revenues are up by more than $7 million, largely because of a 25-mill property tax increase and the payment of 2012 wage taxes that had been delayed by problems at CENTAX, the former collection company.  As a result, there are no plans to furlough workers to make up for a revenue shortfall.

“There is no manufactured financial crisis by a collection mishap by a third-party vendor,” said Drew McLaughlin, the city’s municipal affairs manager.  “Revenue projections are holding steady so far, so we are very, very cautiously optimistic in terms of our financial position this year.”

Still, he cautioned things could change should the weather bring on an unpredictable expense caused by flooding from a tropical storm or snow in the winter.  “We’re at the mercy of Mother Nature there and we proceed cautiously,” he said.

Read more: http://www.timesleader.com/news/local-news/759265/Wilkes-Barre-in-better-financial-shape-than-last-year

Corbett Offers $140 Million For Philly Schools

Map of Pennsylvania highlighting Philadelphia County (Photo credit: Wikipedia)

Part of that story includes the rescue package Corbett outlined Sunday for Philadelphia’s financially beleaguered school district, though parts of that too, still await legislative approval.

The governor told The Inquirer he backed a plan that would help raise $140 million for the School District in the next fiscal year to help prevent the doomsday scenario district officials have said would unfold without financial assistance.  The district faces a $304 million deficit and has sent layoff notices to 3,859 teachers and staff.

But the governor was banking on more than just an on-time budget this year.  Facing reelection in 2014, and trying to turn the tide of sagging poll numbers, Corbett had pushed an aggressive agenda and urged legislators to address it together with the annual budget.

Read more at http://www.philly.com/philly/education/20130701_ett_endorses.html#kk0Wb8ECx92pXBYK.99

Flurry Of Campaign Ads, Holiday Mail Helped Post Office Some, But It Still Lost $1.3 Billion

English: U.S. Post Office Lincoln Branch in Madison Township near Mansfield, Ohio. This United States Postal Service branch closed its doors at 4:30 p.m. on Friday February 11, 2011 due to the fiscal crisis that the United States Postal Service is in as of 2010-2011 and the drastic decline in mail volume. (Photo credit: Wikipedia)

WASHINGTON — The U.S. Postal Service lost $1.3 billion in the final three months of last year, despite a blizzard of campaign advertising for the fall political elections and a big holiday mail and shipping season.

The loss announced Friday was far less than the $3.3 billion in the comparable quarter the previous fiscal year, but still showed the effects of a continued decline in first-class mailing as customers continue to flock to the Internet for emailing, bill paying and the like.

In releasing their financial report, postal officials pleaded anew with Congress to give them the flexibility to better manage the agency — including to free it from a mandate that they prepay for expected retiree health care costs.

Considering its operations alone, the agency actually made $100 million delivering the mail — earning $17.7 billion in revenue against $17.6 billion in operating expenses. But the health care funding and some other expenses pushed it to a net loss.

Read more:  http://www.washingtonpost.com/politics/postal-service-lost-13-billion-package-deliveries-up-mail-continues-to-migrate-to-internet/2013/02/08/3b00ca50-720d-11e2-b3f3-b263d708ca37_story.html?hpid=z3

Postal Service Reports Record $15.9 Billion Annual Loss

USPS service delivery truck in a residential area of San Francisco, California (Photo credit: Wikipedia)

WASHINGTON – The struggling U.S. Postal Service on Thursday reported an annual loss of a record $15.9 billion and forecast more red ink in 2013, capping a tumultuous year in which it was forced to default on billions in payments to avert bankruptcy.

The financial losses for the fiscal year ending Sept. 30 were more than triple the $5.1 billion loss in the previous year.  Having reached its borrowing limit, the mail agency is operating with little cash on hand, putting it at risk in the event of an unexpectedly large downturn in the economy.

“It’s critical that Congress do its part and pass comprehensive legislation before they adjourn this year to move the Postal Service further down the path toward financial health,” said Postmaster General Patrick Donahoe, calling the situation “our own postal fiscal cliff.”

Read more: http://readingeagle.com/article.aspx?id=428549

Profits Up 10.3% At Armstrong In Second Quarter

Armstrong World Industries today reported a 10.3 percent increase in second-quarter net profits, despite lower sales.

Net profits were $41.8 million (70 cents a share), up from $37.9 million (64 cents a share) in the second quarter of 2011.

Sales, however, fell 5.2 percent to $709.9 million from $748.6 million in the comparable year-ago period.

Although sales slid, Armstrong said it boosted profits by cutting manufacturing costs and reducing its selling, general and administrative expenses.

Read more: http://lancasteronline.com/article/local/699292_Profits-up-10-3–at-Armstrong-in-second-quarter.html#ixzz227UDFhit

Pa. Senate Approves $27.7 Billion Spending Plan And Sends It To Gov. Tom Corbett

With one day left in the fiscal year, the state Senate passed by a 32-17 vote the nearly $27.7 billion state spending plan that the House passed on Thursday.

It now goes to Gov. Tom Corbett for enactment.

Read more: http://www.pennlive.com/midstate/index.ssf/2012/06/pa_senate_approves_277_billion.html

Williamsport Cuts 35 School Positions

Map of Pennsylvania highlighting Lycoming County (Photo credit: Wikipedia)

WILLIAMSPORT, PA – Thirty-five positions are eliminated under a $75.5 million budget approved by the Williamsport Area School Board for the next fiscal year.

The board also is increasing its property tax by .339 of a mill to balance the budget, approved by a 5-2 vote this week.

Faced with a multi-million dollar deficit due to decreased or flat state subsidies against rising personnel, insurance and pension costs, the board voted 6-1 to eliminate 15 teaching jobs and 20 support staff. Eight of the 45 took voluntary layoff. The layoffs are effective July 1.

“Everyone is not happy … for the number that we furloughed, but it could have been worse,” said Superintendent Dr. Kathleen Kelley.

Read more: http://www.lockhaven.com/page/content.detail/id/539537/Williamsport-cuts-35-school-positions.html?nav=5009

Commonwealth Of Pennsylvania Enacting A Spending Freeze To Keep Budget Balanced!

The temperature isn’t the only thing freezing in Pennsylvania:

Gov. Tom Corbett’s Budget Secretary, Charles Zogby, said today state revenues are on track to miss projections that the current budget was built on by $500 million this fiscal year.

That revenue shortfall, Zogby said, has led Corbett to task him with drawing up options for a mid-year freeze on some state spending to try to keep the overall $27.1 billion general fund budget in balance. He also said it creates a scenario in which there will likely be scant resources for any spending increases in fiscal year 2012-13, which begins July 1.

Read more : http://www.pennlive.com/midstate/index.ssf/2011/12/state_revenues_expected_to_be.html

United States Postal Service Racks Up Another HUGE Loss

Image via Wikipedia

The United States Postal Service just ended their fiscal year on September 30th.  During that time period, the USPS lost $5.1 BILLION.  The only reason this figure was not $10.6 BILLION is because new legislation allowed the USPS to delay a $5.5 billion payment to a retiree health benefit fund.

The USPS needs to cut another $20 billion by 2015 to move back into the black.  On the table are more post office closings, dropping Saturday delivery, taking on non-mail related business and reducing retiree health costs.

The USPS saw their income drop about $1.4 billion dollars over the previous year.

SEPTA Ridership Hits 22-Year High

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For the fiscal year that ended June 30, SEPTA‘s buses, subways, trolleys, and trains had about 334 million passengers, up 4 percent from the previous year and the most since 345 million in fiscal 1989.

SEPTA officials credited service improvements, higher gasoline prices, Center City population growth, and a growing use of transit by young adults.

To read the entire article from Philly.com, click here:

http://www.philly.com/philly/news/20110728_SEPTA_ridership_hits_22-year_high.html?ref=twitter.com

Pennsylvania Experiences Revenue Decrease For October

Some disappointing financial news for Pennsylvania.  Revenue collected for October was 3.2% below projections, which translates to $57 million dollars less than expected for the month.  $44 million of the shortfall was in the personal income tax category.

We aren’t out of the woods yet!