The Allegheny Valley School Board is expected to vote Tuesday, May 19 on a preliminary budget for next school year that does not include a property tax hike.

The 2020-2021 preliminary budget amounts to $26.6 million.

The school real estate tax rate will hold at 20.8377 mills. The owner of a home with an assessed value of $90,000 would continue to pay $1,874 in Cheswick, Harmar, Springdale and Springdale Township.

As was the case last year, other sources of revenue for the school district include 0.5% earned income tax, a 0.5% real estate transfer tax and one-half of the $10 occupation privilege tax.

Next school year’s budget is almost 16% higher than this current school year’s $23 million budget because of a transfer from the general budget to a capital reserve fund for district capital projects, said Hamsini Rajgopal, the district’s business manager.

To cover increased expenses and a predicted decrease in revenue, the budget calls for dipping into the district’s fund balance for just under $1 million .

“We’re fortunate we have a fund balance to dip into,” Rajgopal said.

However, she noted that this year’s budget is difficult and fluid.

“With covid-19, we are not immune as a school district,” Rajgopal said. “The unemployment will affect earned income tax collections.”

Given job losses and a predicted 9% decline in real estate transfer tax, the district could see a 4% decline in revenue. Additionally, the timing of when the school district might receive state funds is uncertain, she added.

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