Increases in Mandated PSERS Contributions:
The state of Pennsylvania mandates that all PA school districts contribute to the Public School Employees’ Retirement Systems (PSERS). Over the past 10 years, state funding levels have seen a drastic cut, forcing school districts to make up the difference with the use of local tax revenues. For the 2019-2020 school year, all school districts must contribute at a rate of 34.29% of salaries. In PASD that equates to $12,550,149 for the 2019-2020 school year. The increases in this contribution rate have skyrocketed from 12.3% in the 2012-13 school year to 36% in the 2022-23 school year. This means for every dollar paid to an employee this school year, 34 cents is contributed to the pension fund.
Act 1:
Compliance with the tax limit index became mandatory for all school districts in 2006. The
Act 1 Index is calculated using the state SAWW (Statewide Average Weekly Wage) index and the Federal ECI (Employment Cost Index). The base index for Phoenixville for the 2019-2020 school year is 2.3%. The Administration and Board work hard to keep any increases as low as possible, and in the past eight years, all of the budgets have been lower than the index.
Enrollment Increases:
Over the past 10 years, the District enrollment has increased nearly 25% while property taxes have increased less than 17%. This has been accomplished by finding efficiencies while still providing above inflation increases for employees. Projections for the future show a continuation of the upward trend in enrollment, with the need for an additional school on the horizon.
Significant Increases in Mandated Special Education Costs:
State support of special education costs has stayed virtually unchanged for the past 20 years, yet the mandated services and the accompanying expenses have risen dramatically. Not only have we seen an increase in the cost of special education services but also in the number of students requiring those services. It is our duty and obligation to implement Individualized Education Programs (IEPs) for our students. However, this does come at a cost.
Unfunded and Underfunded Mandates:
PASD, like other districts across the state, is faced with a growing list of unfunded or underfunded mandates. Besides special education, they include state standardized testing and remediation; school health programs and training; English Language Development (ELD), school based mental health supports and services; gifted; staff development; various state mandated trainings; and transportation services to charter, private and parochial schools within 10 miles of PASD.
Loss of Revenue From Phoenixville Hospital:
Phoenixville Hospital has applied for non-profit status with the state, which will result in at least $950,000 of lost tax revenue each year.