P-G: Tax hike, funding, job cuts, tap of reserves characterize plan in Mt. Lebanon

After a months-long budget-making process some of them said was their most difficult to date, Mt. Lebanon school directors approved a final 2012-13 spending plan Monday night that will raise the property tax rate by a half mill and includes $850,000 in program and staff cuts.

No teachers will be furloughed in the $80.6 million budget, but the district will furlough one 10-month secretary, six part-time library clerks and one high school library clerk. The millage increase will mean an extra $50 a year for a home valued at $100,000, and the total millage is 27.13 mills.

Read the full article:

• www.post-gazette.com/stories/local/neighborhoods-south/tax-hike-funding-job-cuts-tap-of-reserves-characterize-plan-in-mt-lebanon-637368/ (Pittsburgh Post-Gazette)

P-G: Mt. Lebanon school board passes budget

Mt. Lebanon school directors approved a final 2012-13 budget tonight that will raise the property tax rate by a half mill and includes $800,000 in program and staff cuts.

The $80.6 million spending plan will use roughly $106,000 in reserve funds and includes furloughs of one 10-month secretary, six part-time library clerks and one high school library clerk. No teachers will be furloughed.

Read the full article:

• www.post-gazette.com/stories/local/neighborhoods-south/mt-lebanon-school-board-passes-budget-636926/ (Pittsburgh Post-Gazette)

P-G: Property taxes to rise a half mill in Mt. Lebanon schools

School directors in Mt. Lebanon voted Monday night to increase the property tax rate by a half mill in the district's proposed $80.6 million final 2012-13 budget.

The increase would mean an extra $50 on tax bills for a home valued at $100,000. With this plan, the district's millage would total 27.13

Read the full article:

• http://www.post-gazette.com/stories/local/neighborhoods-south/property-taxes-to-rise-a-half-mill-in-mt-lebanon-schools-632133 (Pittsburgh Post-Gazette)

Trib: Hearings to decide on Mt. Lebanon spending surplus

Mt. Lebanon commission will hold public meetings in the next two weeks to discuss spending up to $1.38 million of this year's budget surplus and to discuss the municipality's parks and recreation needs.

Mt. Lebanon keeps about 10 percent of its annual revenues in reserve, not assigning it to pay for any projects. When revenues at the end of the year go above that 10 percent threshold, a law enacted late last year requires a public hearing for residents and the commissioners to discuss whether to spend the excess, and if so, how to do it.

Read the full article:

• www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh/s_790860.html (Pittsburgh Tribune-Review)

The Almanac: Mt. Lebanon school budget cuts take shape

The Mt. Lebanon school board amended its list of proposed budget reductions at its April 2 discussion meeting.

The new list is estimated to save some $860,000 through budget reductions and revenue generation. This will occur alongside a .426 mill tax increase and the use of $250,000 from the district's fund balance.

Read the full article:

• www.thealmanac.net/alm/story11/04-04-2012-ML-amends-budget (The Almanac)

The Almanac: Mt. Lebanon eyes staff cuts

Mt. Lebanon community members gathered in the Jefferson Middle School auditorium March 26 to hear an overview of the school board's draft 2012-2013 budget, as well as discussion of proposed cuts aimed at closing a $2 million budget gap.

The shortfall is largely the result of reductions in state funding, as well as rising pension and healthcare costs. The board currently targets a 0.5 mill tax increase, $700,000 in budget cuts and a $250,000 transfer from its excess fund balance to make up the difference.

Read the full article:

• http://www.thealmanac.net/alm/story11/03-28-2012-ML-budget (The Almanac)

P-G: Balanced budget out of reach in Mt. Lebanon

Mt. Lebanon school board members resumed talks Monday night about the district's $2 million shortfall in the proposed 2012-13 spending plan and discussed ways to bring money into the district to prevent losing staff close to the classroom.

Members could reach deeper into a 38-item list of possible cuts to avoid cuts such as counselors and the part-time community service coordinator, Judith Kolko.

Read the full article:

• www.post-gazette.com/stories/local/neighborhoods-south/balanced-budget-out-of-reach-in-mt-lebanon-628734 (Pittsburgh Post-Gazette)

P-G: Staff cuts possible in Mt. Lebanon schools

Mt. Lebanon School District moved closer to closing a nearly $2 million gap in the 2012-13 budget when it released a 38-item concept list Tuesday that includes nine furloughs among the possible cuts.

Though they're near the bottom of the list, which is organized by priority, the district could part with a high school teacher -- by furlough or attrition -- one full-time high school library clerk, six part-time library clerks and a community service coordinator.

Read the full article:

• www.post-gazette.com/stories/local/neighborhoods-south/staff-cuts-possible-in-mt-lebanon-schools-627553/ (Pittsburgh Post-Gazette)

P-G: Mt. Lebanon school board continues to wrestle with $2 million budget gap

Still undecided on how they will close a nearly $2 million gap, Mt. Lebanon school board directors will hold further talks on the 2012-13 budget later this month.

The board has to decide whether it will vote to increase the property tax rate, dip into reserve funds or cut programs -- and staff -- by its April 16 voting meeting. Most members have called for a combination of two or more of those avenues.

Read the full article:

• www.post-gazette.com/stories/local/neighborhoods-south/mt-lebanon-school-board-continues-to-wrestle-with-2-million-budget-gap-321200/ (Pittsburgh Post-Gazette)

Commissioner Miller Updates Us On The Budget

5th Ward Commissioner Dan Miller's latest blog posting gives us an update on the 2012 budget hearing:

Read the full article:

• www.danmillerward5.com/2012-budget-hearing-update

P-G: Budget Planning Begins

Mt. Lebanon school board unanimously approved a resolution Monday directing Superintendent Timothy Steinhauer to prepare a final budget for 2011-12 with a millage increase that does not exceed 1.4 percent of the current year's rate of 26.63, or 0.37 mills, district spokeswoman Cissy Bowman said.

The resolution comes a year after the board passed a 10.5 percent property tax increase due to increased pension responsibilities and a bond issued for the planned $113.2 million high school.

Also Monday, finance director Janice Klein said the Moody's rating agency recently gave the school district an Aa1 credit rating. The rating reflects that the agency believes the district's financial obligations, including the $69 million bond issued last year for the high school project, are of high quality and subject to very low credit risk

Read the full article:

• www.post-gazette.com/pg/11020/1119366-55.stm (Pittsburgh Post-Gazette)

P-G: Mt. Lebanon approves tax decrease

Mt. Lebanon taxes will decrease slightly for residents after the commission passed a budget Monday night that lowers the real estate tax.

The commission voted 4-0 to pass the budget, which reduces the real estate tax rate from 4.89 mills to 4.76 mills. Commissioner Dan Miller was not present at the meeting.

The 2011 spending plan recommended by municipal Manager Steve Feller in November proposed increasing property taxes by 0.48 mills to fund the street reconstruction program.

Read the full article:

• www.post-gazette.com/pg/10348/1110636-55.stm (Pittsburgh Post-Gazette)

Don't Forget This Increase

NOTE: The following article is a letter to the editor written by Mt. Lebanon resident Michele Randolph-Kavalir.

I am very disappointed to learn of the budget approval which occurred at the recent Mt. Lebanon school board meeting.

At a time when so many families are struggling financially, a 10 percent tax increase will add greatly to their hardship. Your disregard for these Mt. Lebanon families is cruel and ignorant. I believe that many families will have to make the unfortunate decision to move from Mt. Lebanon due to this tax increase. Then what?

Read more: www.thealmanac.net/ALM/Story/06-02-2010-letter-ML-Kavalir

Mt. Lebanon School Taxes To Increase

Mt. Lebanon residents can expect to see a 10.5 percent increase in the school tax rate after the school board passed a $79.36 million budget Monday night.

The 2010-11 budget's tax rate of 26.63 mills is an increase of 2.52 mills over the current year's spending. Of the 2.52 mills, 2.16 mills are to cover the $69 million bond issue for the planned $113.3 million high school renovation, and 0.37 mills are to cover increased pension fund responsibilities. The base budget went down 0.01 mills.

Read more: www.post-gazette.com/pg/10145/1060601-100.stm

Read more: www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh/s_682782.html

School Board Approves 10.5% Tax Hike and Creates Task Force to Reduce Future Costs

Tonight, the school board voted 6-2 to approve a final budget of $79.4 million for the 2010–2011 school year. The budget raises school real-estate taxes to 26.63 mills, an increase of 10.5 percent. Voting for the budget were Directors Birks, Cappucci, Ostergaard, Posti, Remely, and Rose. Voting against were Directors Fraasch and Stipanovich.

Those supporting the budget said it represented many hard decisions, all carefully considered. They emphasized that the district held the line on normal operating costs: the large increase, they offered, was the result of unavoidable pension costs and debt service on the $75-million bond for the high-school project.

Those opposing the budget argued that it was wrong for the board to tax its way out of a spending problem. They pointed out that this year’s cost increases were foreseeable, and yet the board did not adequately prepare for those increases in previous years. They also suggested that the economy has forced the community to tighten its belt, so why shouldn’t the school district tighten its belt, too? Why should the school district, they argued, be able to offload its financial problems when everybody else must make ends meet the hard way?

After this discussion, the vote was taken. The budget passed. Nobody seemed to feel good about it.

On a hopeful note, the board voted unanimously on a different motion, one to approve the formation of a “task force” to reduce operating costs. To make meaningful reductions, the logic goes, the board needs more time than the traditional budgeting process provides; the task force solves this problem by looking into the budget on an ongoing basis. When next year’s budget comes due, the board (one hopes) will finally have the options it needs to make those “hard decisions” we keep hearing about.

In the meantime, this task force represents the acid test for those school-board directors who talk about controlling costs but don’t do much cost-controlling. If they are serious about their commitment, they will give the task force what it needs to be effective – and then let it do its job.

The next few school board meetings are where the task force will be defined. They will determine whether the task force is real or not.

Let’s see what happens.

Mt. Lebanon Board Considers Committee To Study Increasing Budget Worries

Citing concerns over future debt, school board members in Mt. Lebanon said Monday they will consider creating a committee to review budgetary issues looming in the next three years.

The board is poised to approve a nearly $80 million budget next week, which will include a 10 percent school property tax increase. Costs for the $113 million high school renovation and projected shortfalls in the Pennsylvania State Employee Retirement System (PSERS) fund are driving the increase, officials said. Mt. Lebanon has about $75 million available for the high school renovation.

Read more: www.pittsburghlive.com/x/pittsburghtrib/news/pittsburgh/s_681918.html

Mt. Lebanon Administration, Board Look To Cut Costs

With real estate taxes expected to rise to cover a proposed $113.3 million high school renovation and increased pension responsibilities, Mt. Lebanon administrators and school board members discussed this week how to cut costs for the 2010-11 budget year and beyond.

In the several weeks since budget talks began, the administration already has reduced the proposed property tax increase by a few percentage points.

The most recent draft of the proposed $79.6 million budget calls for a 10.38 percent increase in the real estate tax, from 24.11 mills in the 2009-2010 budget to 26.72 mills in the proposed 2010/2011 budget.

Read more: www.post-gazette.com/pg/10098/1048623-55.stm (corrected link -- thanks Dave!)

School District's Preliminary Budget Reveals a Sobering Reality

At last night's school-board discussion meeting, the agenda was packed. But one topic stood out: the preliminary budget for the 2010–11 school year. In short, it's looking grim.

Property taxes for the district are projected to increase by about 14 percent, from 24.1 to 27.5 mills, this year alone, with similar increases expected for the next few years. The increase is nearly 40 percent larger than the school district's most-pessimistic forecast from last April.

What explains the unexpectedly large increase? Salaries are up by 2.5 percent; fringe benefits by 17 percent. A big part of the increase comes from the district's newly increased pension-funding requirements. With the state government paying less, our district's share must increase from 4.8 percent to 8.2 percent. (Our share is expected to increase again, climbing to 10.7 percent, the following year.) And there's the high-school renovation: it's in there, too. But part of the explanation is that we weren't pessimistic enough in our past projections.

How bad is it? Janice Klein, Director of Finance, ended her presentation of the preliminary budget soberly: "Unfortunately, balancing the budget [takes] a huge millage number... There's really nowhere else to get the money other than through real-estate taxes... I know that [the budget] wasn't very pretty, but that's where we are right now."

Okay, so our property taxes are going up again. What's the big deal? The big deal is that our school district can no longer afford its current spending habits. These tax increases, as large as they are, aren't going to be enough to pay for everything the district wants. Something has got to give.

Addressing the need to start cutting, Board President Ed Kubit said, "We are looking at very serious discussions ... on how we're going to be able to afford a lot of these things. We need to sit down and talk about programs, and understand the value of those programs. Staffing positions. Closing schools. We need to have those very difficult discussions to decide what we are going to be able to afford as a district... We are going to have to very carefully look at our budget not just this year but over the next four to five years, as well."

Indeed, something has got to give. And now the board knows it.

UPDATE: School-board director James Fraasch has posted a summary of the January 11th meeting.

Reviewing Raja's Budget Message

Over the holidays, Commissioner Raja sent out an email (and posted to his web site) explaining why he voted for the 2010 municipal budget. This was particularly interesting to me since Commissioner Miller had previously posted his comments in opposition to it.

A couple of issues caught my eye:

First, Commissioner Raja seems to trumpet the savings of limiting COLA raises for employees in 2010 by pegging the COLA to the current low inflation numbers. Forget that fact that this seems to treat people differently just because they don't have a union, does anyone really think that inflation is going to stay low? Or regardless of how it goes up and down, are we now saying to the employees that whatever the inflation number is at the end of the year you will get that raise when the number exceeds 3%?

Commissioner Raja also made a reference to paying for “expenses from the fund balance.” He said that he would “have preferred to implement organic changes that could have funded these increases on a sustainable basis going forward.”

An example of his “organic changes” seems to be the merger of the Assistant Manager and Finance Director positions. If I understood the budget broadcast, the merger of the two positions was unanimously approved by the Commission. The debate seemed to be about what would happen to the Assistant Managers HR duties. Raja wanted those duties distributed amongst other staff while the majority supported the managers recommendation of hiring a new HR person. It was said that having a separate HR position was one of the Matrix report recommendations.

Commissioner Raja said that if the majority had agreed with him we would have saved annually $141,000. Commissioner Miller said that the 2011 budget shortfall is already $3.14 million.

Commissioner Raja said that he recommended “organic changes” (notice the plural) that “could have funded these increases on a sustainable basis going forward.”

Anyone else interested in knowing what his organic suggestions were that would solve our problem? It would be great for Commissioner Raja to post his suggestions that were rejected by the Commission so we could evaluate them ourselves -- and if necessary -- lobby other Commissioners to adopt them!

Additionally, I saw that the majority did not support a strategic planning process in 2010. Given the size of our problem for 2011, I wonder why this was not supported. Doesn't the municipality need a plan - and need it quickly?

Mt. Lebanon Fund Balance Fills Gaps In Budget

Mt. Lebanon's municipal commission approved a $30.7 million general fund budget for 2010 by a 3-2 vote on Monday.

"Despite the shortfalls, we found a way to make it work this year," said D. Raja, who voted in favor of the budget. As incoming commission president, he said he would look for ways to increase revenues over the next year.

The approved budget will not change real estate, earned income and deed transfer tax rates in 2010 as compared with 2009.

Read more: www.post-gazette.com/pg/09351/1021458-55.stm