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Inflation: -1%, Great Valley Tax Hike: +1.7% Options
johnc
Posted: Wednesday, June 03, 2009 11:42:26 AM
Rank: Advanced Member
Groups: Member

Joined: 8/2/2008
Posts: 36
Location: Charlestown
According to The Daily Local (http://www.dailylocal.com/articles/2009/06/03/news/srv0000005493270.txt), the school district is proud that they are "only" increasing taxes by 1.7% this year and that it's the lowest increase in 25 years.

What I don't get is why they aren't going down.  CPI inflation has gone down from 2008 to 2009.  I understand the school district's costs going up when there is positive inflation, but why in the world is it going up when there's negative inflation?  It should be going down.

To compare buying power between years, see the U.S. Bureau of Labor and Statistics site at http://www.bls.gov/data/inflation_calculator.htm.  You'll see that $10,000 of buying power in 2008 now equals $9,904.18 which equates to negative inflation.  In contrast, $10,000 of buying power in 2007 equaled $10,383.96 in 2008 which illustrates positive inflation (like every other year in the past 25 years).

I just don't get why the cost of everything has gone down from 2008 to 2009 except our school taxes.
brickyardz
Posted: Wednesday, June 03, 2009 6:18:58 PM
Rank: Member
Groups: Member

Joined: 8/13/2008
Posts: 28
Location: East Whiteland
To: Johnc

The taxes continue to go up because the School Board does not ask for detailed justification for the budgets presented by the Administration and the Administration continues to present new budgets based on what they had in the budget the year before.  While the School Board has more closely examined the budget requests the past 2 years, resulting in smaller than normal increases, they still do not require justifications that other large organizations require during budget preparations.

Additionally, the School Board approved a new 4 year teacher union contract last year that provides for large automatic salary increases every year without any performance requirements, along with benefits which far exceed what people receive in the private sector.  The salaries and benefits in the School District make up about 67% of the total budget, so any increases in salary and benefits results in significant budget pressures.  Salary increases for the teachers will average 5% next year during a time when many people will receive no salary increases or are worried about losing their jobs.  The School Board was irresponsible in approving this contract and as a result, the taxpayers will now be forced to pay more and the schools will feel more and more budget pressures in other areas.
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