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WRIGHT TWP. — The controversial topic of switching bus contractors didn’t come up at Thursday’s Crestwood School Board meeting, but the board did vote to increase taxes.
It was stated by Albert Melone Jr., business manager, a tax hike increasing the millage to 10.0611 mills would produce an additional $700,000 in revenue. A mill is $1 in tax for every $1,000 of assessed property valuation.
On a roll call, the vote to accept the proposed final operating budget was seven to one, with only Director William Jones voting no.
Jones, who presided over the meeting, said his vote is based partially upon contracts negotiated by previous school board members who completed their term prior to January 2016.
“They have left us in a difficult position,” Jones said, “We have to fund these contracts now … it leaves us in a tough spot. Now we have to try to negotiate concessions with the unions.”
A major element of the proposed spending plan is a deficit which Melone listed at $1.2 million. Since the board has until June 30 to submit its official spending plan to the state Department of Education, Jones said in the interim the board will hold discussions with union leaders.
At this point Jones said the board has to consider instituting layoffs as well as increasing class sizes and cutting programs.
Overall, Melone projects $36.3 million in revenue, $21.5 million of which will be realized through local taxation, $14.4 million in state reimbursement and $405,000 in federal subsidies. Spending is listed at $37,613,215.
Melone added that salary and benefits constitute 70 percent of the proposed spending for Crestwood— $16.5 million in salaries and $9.6 million in benefits.
In his outline, Melone cited as an example that a person with real estate valued at $200,000 will pay another $85.28 in taxes.
Overall, Melone painted a bleak picture of reduced funding from the state legislature and continuing increased costs that have the potential to strap taxpayers with even higher taxes. At the same time, Melone projected Crestwood’s deficit has the potential to mount in future years because of these increasing costs and state funding programs that fail to adequately finance them.
Accordingly, Melone called for community wide cooperation between the school board and citizens.
“Because there is a lot at stake here and … you, the ‘Stakeholders’ have an obligation to give your kids a good education,” Melone said.
At their meeting last week, the board members voted to change bus lines from Rhinehimer Bus Lines Inc., Wapwallopen, to Historic Mountaintop Hotel Inc., a company owned by Kingston-based businessman Kevin Foley. During the board’s meeting Thursday night, they addressed the preliminary budget with a deficit of an estimated $1.2 million, affirming that a 4.43 percent increase in real estate taxes will be required to help finance a proposed 2016-17 budget of $37.6 million.
On May 12, the board voted 5-0, with two abstaining, on the proposal from Foley after Rhinehimer’s owner, Scott Henry, pulled out of the automatic two-year extension because he wanted a raise in the rate paid to the company to offset the purchase new buses and vans. Board members supporting Foley’s proposal were Randy Swank, Ronald Sturgeon, Joseph Kaminski, Albert Miller and William Jones. Eric Aigeldinger and Maureen McGovern abstained from the vote.
The board received three proposals — a new contract from Rhinehimer; a contract from Foley, which held the line on the school’s transportation budget; and an unknown contract — after putting out a request in February.
Henry wanted a pay increase for his company, which was unfeasible because of a budget deficit.
“The current provider (Rhinehimer) would have cost the district $460,000 over the life of the (five-year) contract,” Swank said.
“I will adapt as I have done for the past 35 years,” Henry, also owner of Martz Trailways in Wilkes-Barre, said. “I have worked full time in the transportation industry as it is an ever changing hands-on business.”
During the meeting last week, Rhinehimer drivers complained that Foley lacked experience and business plans.
“The board did due diligence with his business plan,” Swank said during a phone call to the Times Leader.
Swank confirmed the board saw purchase orders for the buses, which were ordered the day after Foley was announced as the new contract holder.
The Times Leader was unable to reach Foley Wednesday or Thursday for comment.
Randy Swank, transportation committee chairman, said the change in providers was a business decision.
“(Foley) was willing to operate without a raise in price across the board (for five years) with brand new equipment,” Swank said.
Besides the budget, the board acted unanimously to appoint Thomas Harding as a school director succeeding Norbert Dotzel, whose resignation was accepted at the May 12 meeting. Harding, a Mountain Top resident and Wilkes-Barre policeman, was one of nine persons submitting a letter of interest.
At the same time, the school board voted to accept the resignation of Gina Miale as payroll secretary.
The school board recently hired Joseph Gorham as superintendent at $115,000 a year until 2019.
