Future pension contributions have raised concerns from Wallingford-Swarthmore School District officials that projected pension expenses are set to soar in the next several years, and a record of modest tax increases is at risk.
The 2012-13 spending plan, which contains expenditures of about $67 million and will be up for a final vote on June 11, calls for a 2 percent school tax increase.
That amount is achievable because the district will, for the first time in four years, make use of two state-allowed spending exceptions. By staying within its state Act 1 tax cap for 2012-13, the district does not need to seek voter approval.
Taxpayers are footing the bill for market losses incurred by District Business state Public School Employees Retirement System (PSERS). For 2012-13, there will be a net hike of $615,365, for a total bill of more than $3.9 million in district payments to PSERS.
Little relief is on the horizon with a 35.5 percent increase expected in 2013-14, to a total of more than $5.5 million; close to 27 percent in 2014-15, to more than $7.2 million; more than 20 percent in 2015-16, to more than $8.9 million; and then, after leveling off at 2.7 percent in 2016-17, to more than $9.4 million.
The district receives 80.1% of it’s revenue from local tax sources, 17% from Pennsylvania, and .06% of funding from Federal sources. For the year 2012-2013, approximately 1.5 million of the 8 million dollar budget reserve will be used to fund the budget.
If the proposed tax increase of 2 percent is approved, a property owner with a home assessed at the district median of $177,000 would experience an additional $135 in school taxes in 2012-13, for a total of $6,887.
Wallingford Real Estate – Wallingford, PA 19086
