Greater Latrobe School District officials have proposed a 2024-2025 budget with $66.6 million in spending and a projected revenue shortfall of about $859,000.

The school board is expected to vote on the tentative spending plan on Tuesday but administrators are biding their time on making any recommendation about a related real estate tax levy.

“We’ll come back with the final budget at the June meeting,” district business administrator Dan Watson said at this week’s board agenda session. “At that June meeting, we’ll talk about if there is a need for a millage increase.”

The revenue shortfall is roughly the equivalent of the dollars that are generated by 2.5 mills of district real estate tax. One mill of tax is expected to bring in $345,000.

The district has yet to pin down some other revenue streams.

Watson said the projected budget reflects a $2.1 million increase in the district’s state subsidy, based on 75% of the figure proposed by Gov. Josh Shapiro.

“If I had included 100%, that would be about an additional $475,000 in revenue,” Watson said. “We’ll continue to evaluate (projected) operating expenditures for next month, as well as continuing to review potential revenue funding sources, especially the anticipated level of state funding.”

The proposed budget projects a 2.53% increase in overall revenue, to $65.8 million, and a 3.87% increase in total expenditures.

Money allotted for salaries and benefits, which account for 70% of the district’s operating costs, is expected to increase by 5.47%, to $28.5 million. Watson noted two labor contracts that collectively cover more than 70% of the district’s roughly 400 employees will expire at the end of the current school year.

Premiums for employee medical insurance are increasing by 12%. “That’s pretty significant,” Watson said. “We had a 10% increase last year.”

The cost for operating school facilities is expected to decrease by 7.82%, to about $2.3 million. That’s largely a result of the district locking in a lower rate for electricity, Watson said.

In December, the school board agreed at the very least not to exceed a state-determined cap of 5.63 mills for any potential real estate tax increase for 2024-2025.

Last year, a previous version of the school board approved a 3 mill tax hike, to 88 mills.

Watson said 1 mill of tax revenue was directed toward district debt service. Greater Latrobe is paying off a remaining debt of $19.5 million, for construction of the Latrobe Elementary School, with annual installments of about $4 million scheduled to continue until 2029.

Dipping into the district fund balance can be an alternative measure for school boards to cover a revenue shortfall without increasing taxes.

Greater Latrobe’s fund balance rests at about $4.1 million, according to Watson.

Tax rebates offered

Watson urged district property owners who meet household income guidelines to consider applying for property tax rebates from the state and from the district. The state program, which draws upon gambling revenue, also is open to renters.

The programs are available to taxpayers who have a household income of no more than $45,000. They also must be 65 or older, a widow or widower who is 50 or older, or a permanently disabled adult.

Depending on income levels, the state tax rebate ranges from $250 to $650. The district rebate ranges from $25 to $65.

Taxpayers must contact Watson to apply for a rebate from the district, which accepts the same paperwork required for the state program.

“If you’re approved by the state, you’re approved by the school district,” Watson said.

Copyright ©2025— Trib Total Media, LLC (TribLIVE.com)