Penn Cambria raising taxes

By KATHY MELLOTT
The Tribune-Democrat

CRESSON May 15, 2008 11:32 pm

— Property owners in the Penn Cambria School District likely will see their real-estate taxes increase by 2 mills this year – revenue needed to offset escalating costs of fuel, food and health insurance.
In the neighboring Portage Area School District, officials are holding the line on property taxes with a $11 million budget tentatively approved Wednesday night.
The hike would be the first in four years and increase the tax bill for the owner of the average Penn Cambria home by $22 a year, district business administrator Sandy Evans said.
It will be about $30 for the few district residents living on the Blair County side of Tunnelhill Borough, she said.
The proposed hike will take taxes to 48.06 mills and generate an estimated $174,000 annually.
Without it, as many as three teaching positions will have to be lost through attrition, district Superintendent Mary Beth Whited told the board this week.
The cuts would mean larger than desired classroom sizes and could push the superintendent back into a classroom along with her other duties, officials said.
A hike has been under consideration for months, and a decision will be made Tuesday when the board gives tentative approval to the 2008-09 budget of $21 million.
The spending plan is about a half-million dollars higher than the current budget and provides money for fuel increases, a 10 percent hike in health-care premiums and myriad other cost hikes.
Christine Karabinos of Ashville has concerns about class size and is urging the board to approve the tax hike.
“You can see as classroom size goes up, children begin struggling because they’re not getting the attention they need,” Karabinos said. “The smaller we can keep the classrooms, the better off we are.”
But class size must be balanced against the financial struggle many are facing, board member Ed Nileski said.
“There are people in this community living on $1,100 a month and they can’t afford to keep warm,” Nileski said.
“How do you ask them for more money when they’re 80 years old and keep their thermostats at 60 degrees.”
Board member Justin Roberts defended any potential increase in class size, saying Penn Cambria is one the best in meeting student needs.
“It’s not just property taxes. It’s food, fuel, the overall cost of running a household, the overall cost of just existing,” he said.
A tax hike would be offset for some property owners who qualify for the state’s Property Tax Reduction Allocation, otherwise known as the Homestead program, Evans said.
The Portage district increased taxes by 2 mills last year and will get by in 2008-09 at the current level, district Superintendent Richard Bernazzoli said.
State law mandates all districts implement millage rates and have budgets adopted by June 30.