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NE School Board Approves Two Projects at a Cost of $3.85 Million

December 7, 2024 by Paul Crowe

North East School District student enrollment
North East School District student enrollment – fewer students – more spending

To no one’s surprise, the North East School Board voted to approve two spending projects totaling $3.85 million. Both projects passed with votes of 7 to 1. Glenn Craig was the sole no vote in both cases. Board member Charles Ferruggia was not present.

Before the vote, board member Katie Phillips, asked Business Manager Jeff Fox, to explain in some detail how these projects would be funded. Mr. Fox reiterated how he had previously explained all of this in a previous meeting, but felt perhaps he had not been clear. He also stated that claims in social media that this spending would result in a tax increase was not true and then began a long defense of this spending, drawing a distinction between capital projects, which he claims would never result in a tax increase, and operational expenditures, which may result in tax increases from unexpected costs due to health insurance, cyber charter schools, contractual changes and other similar factors. He said he would never propose any project knowing it would lead to higher taxes and then he stressed the capital projects fund where money had been saved and was to be applied to these projects as well as using long term debt service to help pay for them. He also discussed future projects that would total in the area of $15 million to $20 million.

100 percent taxpayer funded

Those words, “100 percent taxpayer funded,” need to be put on stickers which are then placed on everything in the school district from books and computers to tables and chairs to administrators and teachers and even to those therapy dogs. Perhaps that would get the point across. Every penny the school district spends comes from taxpayers. The long explanation from Mr. Fox about capital projects not causing a tax increase which would only come from operational expenditures, made it sound like those capital project funding dollars are somehow different. They come from some magical source that goes into a capital fund and spending those dollars has nothing to do with needing even more tax dollars to cover operational expenses and a tax increase that is called for later. Right.

How many dollars does the district hold in reserve to pay for what is now an annual “unexpected increase?” Does the school district even worry about operational expenses since Act 1 allows them to simply raise taxes to cover them without asking? What if they were required to submit a balanced budget?

Which capital projects are really necessary?

Another aspect of the capital projects presented to the board is their critical nature and how they must be dealt with ASAP. This particular project of the HVAC upgrades seems more necessary than some, more so than the plastic grass project that drained millions of dollars from the capital fund, followed now by millions more for HVAC. At some point, the question needs to be asked, when is it appropriate to just say NO!

What does the district envision long term?

The school administration is well aware of falling student enrollment. Schools all around are shrinking, closing and merging. The football field is now brand new, but how long will the student body be big enough to field a team? Maybe that money could have been better spent?

Has the district even considered that capital projects to build, maintain or expand facilities might be better focused with the possibility of closing a building in the future? Pouring money into something, only to have too few students to use it isn’t fiscally responsible.

Examples of shrinking schools abound

You can look across the street from the NE School District campus and see what used to be the Mercyhurst North East campus until they consolidated their students in Erie. In Erie, multiple elementary schools have closed, are for sale or have been converted to apartments or some other use. In nearby New York, schools even merge student athletes so there are enough to make up a team. North East isn’t immune. The Pennsylvania college system, which includes Edinboro, has had dramatic cutbacks, there simply aren’t enough students to fill the classrooms. North East, however, just charges forward without a care with capital projects, one after the other, which are completely fine because they’re paid for out of those magical capital projects funds.

Are you ready to do something?

If the taxpayers of North East don’t show up at school board meetings, nothing will change. You need to attend, learn what is happening and then calmly and respectfully, make your opinions known. Some of you may wish to consider running for a seat on the school board. Four board seats will be up for a vote next year. Don’t say “someone should do something,” instead, you can BE that someone. How about it? Are you the one?

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Filed Under: North East School District Tagged With: Budget, North East School District, Taxes


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Comments

  1. Nice try says

    December 7, 2024 at 7:57 pm

    So do my tax dollars collected in 2015, 2019, or 2021 and put into the capital project fund to be used in 2025 not count as tax payer money a few years later? Does federal funding not count as taxpayer money? I’m confused. When is the money NOT taxpayer money? What a ridiculous explanation. Admin salaries and bonuses are taxpayer money. The red flag keeps flying higher.

  2. Ted Jones says

    December 7, 2024 at 10:54 pm

    Kudos to Glenn Craig for being the only board member who seems interested in representing his constituents and asking the tough questions.
    Until the general public starts educating themselves on Act 1 allowing the district to increase taxes a certain percentage without any say from the public this will never change. It has become an addiction!
    Act 1 can only be changed through legislative action which means we need to put the pressure where it belongs and that’s on our legislators!

    • Steve says

      December 9, 2024 at 5:09 pm

      We need to have board members state their party affiliation and not cross file. I would suggest that republicans not cross file, so we can vote appropriately..

  3. Ted Jones says

    December 7, 2024 at 11:05 pm

    Here’s a link to learn what Act 1 is if you are not aware:

    https://www.pa.gov/agencies/education/programs-and-services/schools/grants-and-funding/property-tax-relief/act-1-index.html

    Here’s an interesting read from the PA Auditor Generals report from 2023:

    https://www.paauditor.gov/auditor-general-defoor-questions-annual-property-tax-increases-for-12-school-districts-calls-on-legislature-to-close-loopholes/

    • Paul Crowe says

      December 8, 2024 at 8:02 am

      Even more ironic is the name given to Act 1, it is called the Taxpayer Relief Act, which is the exact opposite of its effect on school district taxpayers.

      • Ted Jones says

        December 8, 2024 at 9:26 pm

        Yes, sort of like the Inflation Reduction act.

      • America First says

        December 11, 2024 at 9:52 pm

        I believe this was enacted when Rendell was Governor

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