SAD 1 board reviews Palesky Group meets with parents, says tax cap would cut budget 41%

PRESQUE ISLE – Though SAD 1 officials have not taken a stand for or against the proposed Palesky tax cap, they are working to inform district parents about how the measure will affect the school system.

During its Wednesday night meeting, the district’s board of directors discussed the local impacts of the tax cap should voters approve it in November, according to Assistant Superintendent Jeff Bearden.

The tax cap proposal, which will be on the Nov. 2 state ballot, was initiated by a citizen petition. If it passes, it would cap property taxes at 1 percent of their assessed value.

According to information that school officials presented during the board meeting, the tax cap would force the district to cut its 2004 budget by 41 percent. Bearden said Thursday that 78 percent of the district’s total budget expenditures is for personnel.

“There’s no way you could cut 41 percent out of budget without having a number of layoffs across the board – administration, teachers, support staff – in order to make that happen,” Bearden said.

Using last year’s numbers to work out calculations, SAD 1 officials said that they would require at least $4.4 million from the city to balance its budget, but that under the tax cap, the district would receive only $2.6 million.

Officials believe the tax cap also would effect a major decrease in state aid to the district, creating a total loss of about $7 million under the initiative.

With the information in hand, Bearden said board members will be able to share with their constituents the tax cap’s impacts.

School officials will go a step further by sending a letter next week to parents who have children in the district to explain the financial impact of the tax cap if it passes.

“We’re not necessarily taking a stance on the issue,” Bearden said. “We’re saying here’s what the impact will be on our schools.”