Home > Hatboro-Horsham School District > Hatboro-Horsham Schools Face $2 Million Dollar Shortfall

Hatboro-Horsham Schools Face $2 Million Dollar Shortfall

January 19, 2011 Leave a comment Go to comments

According to a budget presentation at the Hatboro-Horsham School Board meeting Tuesday, the district is facing a shortfall of $2 million in the 2011-2012 school year.

The deficit is caused by several financial challenges including a steady decline in revenue, the Act 1 index, aging facilities and increasing expenditures, Robert Reichert, director of business affairs said in his presentation.

The recession has led to a $2.3 million decrease in collations for interim real estate, earned income and real estate transfer taxes, as well as investment earnings, a release about the meeting stated, adding that over the last six years the district has lost approximately $1.8 million in compounded real estate revenue due to its assessment appeals.

State and federal revenues are also declining. The state’s basic education subsidy is projected to decrease by $499,466 and federal stimulus funding has run out, a loss of $604,000.

The Act I index, a state law that requires that districts maintain tax increases that are below that index, has been steadily falling for the last several years. This year is 2.9 percent, next year it will be 1.4 percent, which will allow the district to collect just more than $800,000. The number, the release stated, is not nearly enough to close the gap between revenue and expenditures.

(Read full story from the Public Spirit)

  1. Deane Clapper
    January 20, 2011 at 12:03 AM

    I went to Crooked Billet’s Reading Night back in October, Where they presented a 3′ x 6′ flat screen “touch screen”. They were not in every room yet,” but with some help they would be in all the rooms”. What’s wrong with blackboards? Money is being spent in the wrong areas. STOP the NONSENSE!!!!

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