Franklin Regional considers 2022-23 budget with 2.75 mill tax hike
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Franklin Regional school board members will consider a final 2022-23 budget next month that calls for a 2.75-mill tax hike — roughly $95 more per year for the average district homeowner.
This would be the first time in five years that the district has opted for a tax hike significantly lower than the maximum allowed by state law.
“The finance committee wanted to start trending away from being at the (maximum) index,” school board and finance committee member Mark Kozlosky said. “But we didn’t want to radically shift too far and put ourselves in a bad situation.”
The board voted this week to approve a proposed final budget with $64.5 million in spending and just over $63.5 million in revenues. A final vote will be June 20.
The proposed final budget will be available online and in person for the public over the next six weeks. District Business Director Jon Perry said that time will allow for adjustments, including some items that remain in flux.
“With our transportation budget, we’re going into the first year of a new five-year contract with A.J. Myers & Sons,” Perry said. “We’re expecting some inflationary increases, but the past few months have also made us aware of fuel price spikes.”
Perry said the district is looking at a potentially $225,000 increase in its transportation costs, including $110,000 more for fuel.
“And that’s still being somewhat optimistic that we can lock in a rate of about $3.25 per gallon,” he said. “We’re part of a consortium that purchases fuel, and they’re planning to hold off right now to see if we can get better pricing.”
If enacted, the 2.75-mill hike would bring the district’s total millage to 106.36 mills. Among school district communities in Westmoreland County, only West Leechburg (134.03 mills) had a higher rate during the 2021-22 school year.
“We’re trying to find that spot where we can ease some of the burden, but not too drastically,” Kozlosky said. “When you look at our millage history, we’ve occasionally gone from 1 mill down to 0.5 mills down to zero mills, and then we’ve had to recover.”
Board member Ed Mittereder added, “Overall, we’re trying to hold a fine line on expenses.”
Budget highlights
Here are snapshots of a few key items in the proposed budget:
• Debt service makes up about 5% of the budget at just over $3.2 million, which is down more than $750,000 from the current budget. Perry said the district is reaching its annual “run rate” for debt service related to the renovation and construction on the former Sloan Elementary campus.
• The value of a mill is projected to be $355,000 in the 2022-23 year. If enacted, the 2.75 mill tax hike would mean an additional $95 for a district property with a median assessed value of $34,510 (estimated market value of $280,569), Perry said.
• Salaries and benefits will go up by $1.2 million, or just more than 2%.
• The district’s $1.3 million in federal stimulus money will be part of the budget through the end of the 2024 fiscal year.
The district’s finance committee will meet at 1:30 p.m. May 26, when additional tweaks could be made to the budget. That meeting will be at the district administrative offices in the former Newlonsburg Elementary building, 3170 School Road South.
For more, or for a digital copy of the proposed final budget, see FRSDk12.org.