The Council Rock School District administration will hold a public forum on its proposed $205.6 million budget next month. The proposed 2012-2013 budget represents an increase of 3.5 percent over the 2011-2012 spending plan.

The forum, originally scheduled for this Wednesday, has been rescheduled to May 16 at 7 p.m. at the Chancellor Center.

The forum will provide the chance for residents to learn more about the district’s finances for the 2012-2013 school year.

According to the preliminary budget, Council Rock is expecting a decrease of more than $2 million in state funding. In 2011-2012, the state provided $36.7 million in subsidies for the district.  Next year, Council Rock expects to get $34.5 million from the state.

The district is also facing revenue challenges due to the downturn in the economy.

“One of the most significant impacts of the downturn in this economy for Council Rock has been the stagnation and/or decline of real estate value, real estate sales, and corresponding decline in real estate taxes,” according to an explanation provided with preliminary budget.

In 2011, nearly 1,000 taxpayers filed for assessment reductions, resulting in a decrease of $1 million in revenue for the district, according to Council Rock officials.

“In 2012, the number of taxpayers seeking reassessment was significantly less. We don't know, now, whether that reduction in reassessments was due to a strengthening real estate market or the exhaustion of the pool of homeowners who could realize savings on real estate reassessments,” the budget summary said. 

The district is also experiencing a 60 percent decrease in transfer tax collections from 2008-2009 revenues – a loss of between $1 and $2 million. “That revenue stream will improve when the economy recovers and sales of existing and new homes improve,” according to the budget summary.

Click here to view the full draft of the preliminary budget.