The newest numbers released by the Pennsylvania School Boards
Association in relation to the increase in statewide teachers’
pensions projected for 2012-13, district shares in the pension are
predicted to increase to as much as 500 or 600-percent.

According to a release from Dave Salter, director of public
relations for PSBA, “While some organizations would like everyone
to believe that the current Pennsylvania School Employees
Retirement System, or PSERS, pension crisis is the fault of school
boards and the commonwealth for not contributing their ‘fair
share,’ the truth is that PSERS receives between 60 and 65-percent
of its funding from investment returns.”

Salter noted that school districts will be facing significant
budget challenges “if nothing is done to correct the current
scenario.”

The significant increases in contributions are a result of both
an act passed in 2001 and the sudden shift in economic well-being
that followed.

Act 9 of 2001, signed by then Gov. Tom Ridge, made several
changes to the benefits paid under the retirement system, including
larger contributions from school employees (6.5-7.5-percent
compared to 5.25-6.25-percent previously) and decreased the
required time necessary for an employee to work before becoming
eligible for state-funded benefits at their retirement (from 10
years to five years).

At the time the act was passed, an economic boom was occurring.
Since then, the economy has shifted and as a result, delayed
additional benefits payments for 10 years, which is now coming to
an end and causing the expected hike in contributions.

In local Intermediate Unit 9, the percentages of share in the
district contributions to pensions expected in the 2012-13 fiscal
year range from a “low” of 507-percent for Coudersport School
District to the high of 652-percent for Northern Potter School
District.

Bradford is mid-range out of the Cameron, Elk, McKean and Potter
counties districts with a projected 537-percent increase of
district share.

In McKean County, Bradford Area School District’s share of
pension contributions is currently $283,591.74. The projected
increase means the share in contributions for 2012-13 is projected
to be as much as $1,806,665.86.

Meanwhile, Kane SD currently contributes $115,722.21 to pensions
and has a predicted increase of 544-percent to make contributions
in 2012-13 as much as $746,141.30; Otto-Eldred SD currently
contributes $61,211.07 and has a predicted increase of 519-percent
(meaning a contribution share of $379,057.93 in 2012-13); Port
Allegany SD contributes $102,715.93 currently and could be
contributing as much as $571,157.31 in 2012-13, a 553-percent
increase, while Smethport SD currently pays in $108,929.81 and is
predicted a 584-percent increase to $745,466.29 for 2012-13.

For 2008-09, the current district share for Cameron County
School District is $93,142.30; the projected share for 2012-13 is
$671,729.81, an increase of 621-percent.

In Elk County, for Johnsonburg SD, the current share is
$93,494.65 and the prediction is a 567-percent increase, meaning
the share for 2012-13 could be as much as $623,680.25; for Ridgway
SD, the current share is $125,808.30, with a projected 541-percent
increase, meaning the 2012-13 share would be $807,403.14; and for
St. Marys SD, the current share is $266,833.44 with a predicted
increase of 585-percent, meaning the 2012-13 share would be
$1,828,838.12.

Finally, for Potter County, increases predicted are 635-percent
for Austin SD (from $36,623.56 to $269,319.55); 507-percent for
Coudersport SD (from $109,370.91 to $664,549.66); 625-percent for
Galeton SD ($68,095.71 to $493,740.76); 652-percent for Northern
Potter ($77,380.76 to $582,555.89) and 538-percent for Oswayo
Valley SD ($53,293.82 to $340,446.29).

The Pennsylvania School Boards Association is a nonprofit
statewide association of public school boards founded in 1895 and
was the first association of school boards established in the
United States. Membership includes each district’s school board as
a whole and has been at nearly 100-percent voluntarily for the
state for several decades.