SHENANGO VALLEY SCHOOLS Increasing budgets run taxpayers through mills

A change in the tax assessment ratio makes the raises appear to be smaller than they are.
By HAROLD GWIN
VINDICATOR SHARON BUREAU
SHARON, Pa. -- A 6-, 7- or 8-mill property tax increase seems high, but how does an 18-, 21- or 24-mill increase sound?
That's what some Shenango Valley school districts are contemplating, if you translate the proposed increases into what they would be if enacted two years ago, before Mercer County changed its property tax assessment ratio from 33.3 percent to 100 percent.
The move tripled the value of a mill but also tripled its cost to taxpayers.
The property tax assessment ratio is a predetermined percentage of the fair market value of a property for taxing purposes. In Mercer County, the fair market value is based on 1970 construction costs.
No protests now
A 24-mill tax increase, an amount high enough to bring taxpayers out in droves to protest, would have been unheard of in years past, but it appears that its 8-mill equivalent today hasn't raised anyone's concerns.
The Sharon City School Board is looking at a property tax increase between 7.75 mills and 8.5 mills, nearly a 20 percent increase, in its tentative budget, which comes up for a final vote Monday, said Melvin Bandzak, board president.
Bandzak said the lack of any public protest may be because people realize all schools are in the same boat with rising costs this year.
Sharon is facing a $650,000 jump in health-care costs, a $229,000 increase in employment retirement contributions, a $268,000 increase in debt service and a $245,000 jump in tuition payments to other schools (primarily charter schools being attended by Sharon pupils), he said.
"You've got to pay it. I don't like it. You've got to absorb it," said Glenn Siminick, owner of the Golden Memories jewelry store on West State Street, adopting a fatalistic attitude.
City officials need to bring more business and industry into town to expand the tax base, he said, explaining, "They wouldn't have to jack these taxes up."
Siminick is getting a double hit. He's facing a tax increase on his Sharon business property and another at his residence in the Sharpsville, where that school board is looking at a 6-mill tax increase.
Edward Glover of Ridge Avenue, Sharpsville, opposes the anticipated 11 percent jump in taxes there and has a red and white sign in his yard asking officials to "Stop Taxing Our Property."
Glover, a retiree from Delphi Packard Electric in Warren, has joined a Pennsylvania grass-roots movement called Stop Taxing Our Property, which seeks to abolish all residential property taxes.
"It's terrible. We have no say," Glover said, suggesting that school employees pick up a share of their health-care insurance to lower the burden on taxpayers.
Sharpsville is the only board to have people show up to complain about the size of the proposed tax increase.
Asking for cuts
James Gibbons and Gerard Hanley, both of Oak Street, asked the board to make cuts to control spending.
Sharpsville is tapping its savings $435,000 to keep the tax increase as low as possible. The district is facing a $330,000 increase in health-care costs and an additional $75,000 in employee retirement fund contributions.
At least two Sharpsville school directors have vowed to oppose the final version of the budget if it carries a 6-mill increase. Director Chris Ruffo termed the increase "ludicrous," and Donna Murray said the equivalent of an 18-mill increase is just unacceptable.
She suggested that a curriculum director's post be left vacant to save the district $100,000 but got no support.
A final vote on the budget is set for Wednesday.
West Middlesex
West Middlesex was looking at an 8.17-mill increase when it introduced its tentative budget, but it has trimmed that to 3.82 mills, which is about a 7 percent increase, said Thomas Hubert, board president.
The district will cut several staff positions through attrition and eliminated some assistant coaching positions, he said.
Hubert expressed surprise that residents haven't shown up at board meetings to protest the tax increase.
The district is faced with a $240,000 increase in health-care costs and $121,000 more in employee retirement contributions. It will take a final vote on its budget June 26.
Hermitage was looking at a 4.5-mill increase but has trimmed that to 4 mills, about an 8.5 percent increase, said Superintendent Karen Ionta.
The budget process started with a $2 million increase in spending, which has been cut to about $1.2 million, she said.
Board President Duane Piccirilli said no one has come to the board protesting the tax increase, but Ionta said she has received a number of telephone calls on the issue. People realize the size of the increase, she said.
The district is faced with a $730,000 rise in health-care costs, $380,000 in salary increases and $220,000 in additional employee retirement contributions, Ionta said.
School Director Tim Ruffo proposed eliminating an elementary principal's post to save money but got no support. A final budget vote is set for June 26.
Farrell's dilemma
Richard Rubano, Farrell superintendent, said his school board is faced with imposing a tax increase or with making massive program cuts.
The financially strapped school district is at bare bones now, he said, explaining the need for 7 more mills of tax, an increase of 15 percent.
A $400,000 increase in health-care costs, a $150,000 jump in employee retirement contributions and a 15 percent rise in utility costs all have to be addressed, Rubano said.
A final budget vote there will be held June 20 or 23, he said, adding there have been no protests from taxpayers.
Lester Robinson Jr., Farrell school board president, said he doesn't think people realize the actual size of the increase and don't understand the tax assessment ratio change. Still, people do realize that costs are going up and that the board has to meet them, he said.