Palmerton Area School District remains on track to pass next year's budget with a 12.6-percent increase.

That means a 5.506-mill increase is likely in the cards for the 2011-12 budget, as explained to residents who attended a school board budget workshop Thursday.Even with the anticipated rise, the board must still come up with another $26,086 worth of cuts to arrive at that destination, according to Donna Les, financial consultant.Les gave an overview of next year's proposed $26,143,747 spending plan, which she said represents a $340,568 decrease over this year's spending plan.The board is scheduled to grant proposed final adoption of the budget when it meets at 7 p.m. Tuesday. At that time, the public will have an opportunity to speak on the budget, board President Barry Scherer announced.Scherer then addressed the counter offer the board received last week from the Palmerton Area Education Association."The board acknowledges that the PAEA has agreed to freeze wages for 2011-12," Scherer said. "However, that offer of a wage freeze has come with additional concessions attached, not an unconditional freeze such as other employee groups have agreed to."Scherer continued "the conditions which PAEA has specified would severely hamstring the board next year in dealing with the ongoing crisis we will face in creating the 2012-13 budget and beyond."After the workshop, Brad Landis, president of the PAEA, told the TIMES NEWS the PAEA "would definitely refute the fact that [PAEA's counter offer] would hamstring the district."Landis added that the PAEA's counter offer asked for four concessions: that the PAEA receive a one-year extension of its agreement; to meet contractual obligations with retirees; and two of which pertained to "language."Les said budget goals include improved student performance and achievement; to provide multiple educational opportunities for all students; to provide for the least-restrictive environment for special-needs students; to provide a safe school environment; and to improve communication with the community.Along with that, she said state funding; maintaining educational programs; funding of the Carbon Career Technical Institute; the impact of Cyber charter/charter schools; contractual agreements; special education costs; and the overall economic status of the community loom as major concerns.Les explained that local funding will account for 64.7 percent of the 2011-12 budget, up from the 54.9 percent level in 2010-11; state funding, 33.6 percent, down from 39.9 percent; federal funding, 1.7 percent, no increase; and zero percent use of fund balance, compared to 3.5 percent.As for state funding, Les said there was a $717,331 reduction in Basic Education funding, which resulted in the loss of federal stimulus and EduJob dollars; a $6,719 increase in Special Education funding; and a $90,000 cut per the governor's proposed budget in Charter School funding.In addition, she noted the governor's budget eliminated Social Security funding for wealthier school districts, and raised the retirement rate increase from 5.64 percent to 8.65 percent of salary.Also, Les said $372,747 was cut in Accountability Block Grant and Educational Assistance Program funding, while $8,411 was cut in Dual Enrollment funding per the governor's proposed budget.The amount certified to the district for 2011-12 in gaming funds is $743,172, Les said, which represents a $2,259 decrease from this year. However, she said that has not yet been incorporated into next year's budget.Les said there will be no refund checks distributed; instead, the funds will be reflected on the Aug. 2011 school property tax bill in the form of an "exclusion" from assessment and an "exclusion" from total due.If the board were to approve the 2011-12 budget with a 5.506-mill increase, that would raise the millage rate from 43.64 to 49.14 mills. That would mean a person with a home valued at $100,000 and assessed at $50,000 would pay $2,457, or $277 more in property taxes to the district next year.Les said the list of expenditures include: instruction:$16,920,388; an increase of $207,336; support, $7,017,464, a decrease of $468,544; noninstructional, $399,205, a decrease of $68,508; facilities, no cost, a decrease of $41,833; debt service, $1,645,892, an increase of $35,537; and transfers, $160,798, an increase of $13,381.By object, salaries would decrease by $853,482; benefits would decrease by $160,149; professional services would increase by $434,765; purchased services would increase by $529,355; supplies would decrease by $210,592; furniture/equipment would decrease by $99,419; and dues/fees/debt service would increase by $36,891, she said.Les said budget adjustments would call for: a reduction in department and building budgets ($201,920); an increase to the Special Education budget ($403,086); an increase to the CCTI budget ($ 223,443); a reduction in Donation to the Palmerton Public Library ($3,350); a reduction in student activity program offerings ($38,561); a reduction in athletic program offerings ($66,300); and administrative and confidential staff unconditional pay freeze ($36,542).The high school athletics programs that were mentioned as potential cuts from next year's budget were wrestling, cross country, swimming, boys' and girls' soccer, golf, and tennis. At the junior high level, wrestling and cross country also would be affected.Those proposed athletic program cuts resulted in a protest last week that saw residents, athletes and others gather outside the Parkside Education Center before an executive session conducted by the board.After Thursday's workshop, Scherer said that while the proposed preliminary budget still includes cuts to the athletic programs, he was confident that parent booster clubs could raise enough money to offset a potential 25-percent cut to each program.Approached by the TIMES NEWS after the workshop, Tiffani Christman, president of the Palmerton Youth Wrestling Cheerleading Association, confirmed that out of the $40,000 worth of donations the parent booster clubs must come up with, $34,000 has been collected. Christman said she's confident the remaining $6,000 can be collected, which, with $25,000 in athletic program cuts, would ensure the athletic programs that have been proposed to be cut will be reinstated by the start of the next school year.The move was necessary in order for the district to remain in the Colonial League, it must have 70-percent participation in sporting events. Otherwise, it would have to be part of an independent league.Superintendent Carol Boyce previously said the district must be in accordance with Title 9, which says it must balance opportunities for both boys and girls.Les said budget adjustments through grant elimination would include: Dual Enrollment Tuition ($8,411); Education Assistance Program ($50,237), which would mean the elimination of after school tutoring, supplemental programs, supplies, and staff development; Accountability Block Grant ($293,744), which would entail the elimination of after school programs, summer program, substitutes for staff meetings, supplies, software, curriculum writing, conferences and professional services; and a reduction in staffing costs ($1,245,945) to not fill two vacant teaching positions; to reduce one teaching position to 80 percent; to furlough 12 teaching positions; to furlough 10.5 support staff positions; to furlough one administrative position; to eliminate all curriculum writing; and to eliminate summer maintenance.Les noted that would mean a 12 percent reduction in staff, which she said is "huge."Boyce said after Thursday's workshop that while the employees who would be affected have been spoken to, she couldn't go into the specifics because "we're still waiting for PDE's {State Department of Education] final stamp of approval."Asked where the additional $26,086 worth of cuts would be made, Boyce said that has yet to be determined."All graduation requirements and the availability of credits will not be jeopardized," Boyce said. "The kids will still have elective options, and will continue to have student activities; at least the more popular ones."At present, Les said the district has an estimated $730,022 in fund balance."I believe the district should maintain three-months' expenses, or $1.2 million," she said. "The district's bond financial adviser recommends $2 million."Les said the 2011-2012 budget doesn't account for an anticipated increase of 23 additional students at the CCTI, as well as an influx of special needs students.Nor, does it account for a 53.4 percent increase in the retirement rate, from 5.64 percent to 8.65 percent of salary, along with a continuation of increases for the next 10 years, not to mention the current estimate of rate peak in 2021-22 is 27.03 percent, she said.Les said future budgetary implications include a 12.19 percent increase in the retirement rate in 2012-13. She said based on the assumption that there would be: no salary increase in 2012-13; that total wages would be $10,094,662; the Act I index of 1.4 percent would be adjusted to 1.9 percent that would equal a .933 mill increase; that referendum exceptions would not be available; and that the state would continue to pay its share, she said the district's share of expenses would be $615,270, while its revenue from millage would be $266,077, which would leave a shortfall of $349,193."That's without even beginning the 2012-13 budget," Les said. "The district needs to be very, very cautious in recognizing between needs and wants."However, Les noted that the district has been "very proactive to try to mitigate costs."She said that the Senate and House budget proposals are still pending, and added that there will be a continuation of budget review by the district's administration, board, staff and public."No one here likes a 5.506-mill increase," Les said. "We've got a good district here, but the state's not stepping forward."Further, Les said "funding is extremely critical.""Every dollar has to be spent very wisely," she said. "This is a difficult time, a very difficult time."Final adoption of the 2011-12 budget is expected when the board meets at 7 p.m. June 21.This year, homeowners saw a 3.9 percent, or 1.64-mill increase, in their property tax rates after the board in June approved the 2010-11 budget on a 5-4 vote that raised the millage rate from 42 to 43.64 mills.That meant a person with a home valued at $100,000, which was assessed at $50,000, paid $2,182 in property taxes to the district, $82 more than the $2,100 rate they paid in 2009-10 when the board passed a budget with a 2.44 percent, or 1 mill, increase that resulted in a $50 increase for residents with the same home value.