Neshaminy School District's ability to raise taxes for the 2013-2014 school year will remain the same as this year.
School board President Ritchie Webb said that the Act 1 index will remain at 1.7 percent for next school year. The Act 1 index is used to determine the maximum tax increases for each tax the school district levies, according to the Pennsylvania Department of Education.
With a rate of 1.7 percent, Webb stated that the school board can only raise taxes approximately $1.9 million without voter referendum.
The district might have some Act 1 exceptions available, the school board "recognizes its obligation to taxpayers who continue to struggle at the hands of this economy," Webb said.
In addition, the school district's Public School Employees’ Retirement System (PSERS) contribution rate will jump from its current 12.36 percent to 16.75 percent next year, he stated.
The district's operational budget, Webb said, will increase by $3 million.
"Depending on state reimbursements, we could be in the red before we even get started," he said of the "significant challenges" the district will face next year.
At the end of last June, the . The board balanced the budget by utilizing spending cuts and delays suggested by district administrators as well as borrowing about $5.5 million from the district's reserves.