Norwin anticipates 2014-15 cash shortage

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Norwin school board members on Monday night heard early budget figures for the 2014-15 school year from John Wilson, district business manager.

He gave the report at the board's workshop meeting. Mr. Wilson said salary increases of 2 to 3 percent could cost the district an additional $715,000 during the 2014-15 school year.

He said the district's contributions to the Pennsylvania State Employees' Retirement System will also increase by 23.8 percent, a total increase in expenditures to the district of $500,000 after the state has reimbursed the district for part of the increase.

He said the limits of the Act 1 real estate tax index would allow the district to raise taxes by 2.7 percent, or 1.85 mills, to a total of 70.95 mills if needed during the next school year.

An extra 1.85 mills would generate additional revenue of $685,000, Mr. Wilson said.

However, it is impossible to tell what tax increase might be needed at this time, he said. Retirements, which cannot be predicted yet, could lower expenses.

Mr. Wilson also recommended that the board opt out of the state's accelerated budget process by resolution in January. That way, the district can follow a traditional time line of submitting a preliminary budget for the next school year in May, and passing a final budget in June, he said.

Anne Cloonan, freelance writer:

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