Greater Latrobe hopes to avoid potential 1-mill school tax hike
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Greater Latrobe School Board is eyeing a proposed 2022-23 budget of more than $61.5 million that could require a 1-mill tax increase to cover a funding shortfall.
But district officials have indicated they may be able to reduce or eliminate that potential tax hike if school subsidy increases proposed by Gov. Tom Wolf are approved.
“We are hopeful that the state will approve Gov. Wolf’s funding recommendation,” said district business administrator Dan Watson. “If that occurs, we anticipate being able to reduce this (tax hike) recommendation next month, with the hope of ultimately going to zero.”
A 1-mill tax hike, to 86 mills, would add $27 to the annual bill for a property with an assessed value of $26,742, which is the average value for a home in the district.
Board members this week reviewed the budget proposal and are expected to vote on a tentative spending plan on May 24. That voting session was pushed back a week because the board’s meeting space — the senior high Center for Student Creativity — will be used for balloting in Tuesday’s primary election.
The board will vote on a final version of the budget in June.
According to his presentation to the board, Watson is initially projecting about $61.2 million in revenues next fiscal year, representing roughly a 6% increase from the current year.
With more than $61.5 million in expenditures anticipated, representing a 6.6% increase, that would result in a funding shortfall of $345,000 — the amount generated by 1 mill of real estate tax.
Local revenues are projected to increase by nearly 3%, to about $36.1 million. While earned income and delinquent tax collections are expected to jump by nearly $550,000 and $400,000, respectively, Watson noted those line items recently have been conservatively budgeted because of uncertainties related to the covid-19 pandemic.
In both cases, he stated, “We should not anticipate this increase moving forward.”
A projected increase of 6.1%, to $22.8 million, in revenue Greater Latrobe receives from state coffers includes potential increases of about $620,000 in the basic education subsidy and more than $179,000 in the special education subsidy.
If the governor’s recommendation is approved, those respective subsidy increases would rise to more than $1.1 million and $219,000, according to Watson.
Federal revenue is expected to increase by 104%, to $2.25 million, but includes $1.5 million in nonrecurring dollars allocated through the Elementary and Secondary School Emergency Relief program. District officials are proposing to apply that money toward classroom support and other measures used to help students who experienced learning loss during pandemic-related shifts away from in-person instruction.
The district is proposing to beef up its property tax rebate, based on a state rebate program, offered to qualifying senior citizens, widows, widowers and those with disabilities who have limited incomes.
“For those residents who qualify, we are recommending increasing the district’s match from 5% to 10% of the state amount,” Watson said. There would be a cap of $65 for the rebate.