Proposed RTM School District Budget Would Bring Zero Increase to Residents

The 2011-2012 proposed final budget would bring a zero real estate tax increase to residents if approved and no programs were cut to achieve that goal.

The proposed $80.6 million budget represents a 1.43 percent decrease from last year’s approved budget, according to Director of Management Service for the District Grace Eves.

The district lost $1.1 million in state funding but it was also able to make reductions in professional services for substitute teachers, security guards, travel expenses and equipment requests in order to prevent a tax increase, according to Eves.

"Reductions though savings are the result of energy conservation, an early retirement incentive program in which 15 teachers and two support staff teachers will be retiring (and not replaced) and lower health care rates, which have not been seen in years," Eves said in an email message. "The combination of reductions, savings and the use of fund balance has resulted in a budget that provides a zero percent tax increase for next year and also maintains current programs."

The district also proposes to use $4.6 million from reserve fund balance, according to Eves.

"There is a gap between the revenue and the expenditures and that fund balance fills the gap," she said.

The current tax rate is 22.25 mills and will remain the same for next year, if the proposed budget is passed by the school board. That means the average homeowner’s property assessment of $205,173 would have a school tax bill of $4,566, according to Eves.

Rose Tree Media School District Finance Committee Chair Bill O’Donnell said the administration should get credit for not spending all that is budgeted each year.

"Just because it gets budgeted doesn’t mean it gets spent. And that’s not the case in all districts," O’Donnell said. "We won’t spend all that was budgeted from last year’s budget."

One program that saw a slight decrease in funding was the vocational education program. Last year, the program saw $913,725 and this year it is estimated to see $779,423. According to Eves, the vocational education tuition is based on a three-year enrollment average and enrollment is projected to decline.

A few programs saw an increasing in funding as well. Student activities saw $1,210,565 last year in funding and it is expected to see $1,308,413 in funding this year. According to Eves, student activities increased due to an increase in participation and supplement contracts.

According to Eves, higher education funding overall decreased by about $16,000. The district pays a portion for tuition and another portion for debt service and the debt service has decreased. Expenditures for Delaware County Community College for the last year were $1,161,121 and for this year are expected to be $1,144,949.

There is a $10 million difference in the capital projects fund between this year and last and that is due to the construction project at, according to Eves. The project began last year and is scheduled to be completed by next school year.

The Rose Tree Media School District Board of Directors approved the preliminary proposed final budget at a special legislative meeting on May 10.

The final vote and adoption of the 2011-2012 budget is scheduled to take place at the June 23 legislative meeting.