Greater Latrobe School District revises revenue projections, expects to hold line on taxes

Greater Latrobe School Board this week unanimously approved a proposed $66.67 million budget for the 2024-25 school year that calls for no increase in the district real estate tax.

Business administrator Dan Watson presented revised figures that allow for a balanced budget, wiping out a potential revenue shortfall of about $859,000 that was indicated in his presentation to the board a week earlier.

Based on recent years’ funding, Watson said he feels comfortable predicting the district will receive 95% of the state subsidy increase it would get under the budget proposed by Gov. Josh Shapiro. That would raise Greater Latrobe’s subsidy by $2.5 million — compared to the $2.1 million increase Watson projected the previous week, based on just 75% of the amount proposed by the governor.

“I believe the state is sitting at a pretty decent spot,” Watson said.

Among other revenue categories, Watson projected that: earned income tax receipts will increase by $250,000, compared to the $150,000 increase cited a week earlier; interest income will be up by $378,000, not by $253,000; and federal revenue will decrease by $1,033,000, down from an earlier expected decrease of $1,078,637.

The district levies an 88-mill real estate tax, with each mill generating about $345,000.

School board members Tom Gockel and John Petrarca said they’re pleased the proposed budget doesn’t raise taxes.

Gockel noted property owners are facing a hike in their Westmoreland County tax bills because of a 32.5% increase approved in December by the county commissioners — only the second increase in county millage since 2005.

“You put a 32% tax increase on everybody, and then you put another couple of mills — for us, it wasn’t feasible to do that,” Gockel said.

“It was important that we have no millage increase,” said Petrarca. “That’s a positive thing for the area.”

Board members Merle D. Musick, president of the panel, and Merle L. Musick declined comment about the budget.

In addition to the ultimate amount of the district’s state subsidy, another factor that could affect the coming year’s budget is the outcome of contract negotiations with two unions. Existing labor agreements with the union representing teachers and with another representing custodial, maintenance and food service workers are set to expire by the end of June.

That’s the same time when the school board must past a final version of the 2024-25 budget.

District expenditures are expected to increase by 3.87% from the 2023-24 budget.

If the projected revenues don’t cover expenditures as expected, the district can dip into its fund balance to bridge the difference, Watson said. The fund balance is about $4.1 million.