Preliminary Greensburg Salem School District budget keeps tax rate steady

Greensburg Salem School Board had a first look Wednesday at a proposed 2023-24 district budget based on holding the school real estate tax at its current level.

That initial budget includes estimated expenses of nearly $49.5 million and revenue of $48.8 million, for a shortfall of $612,420, equal to the funds generated by 2.62 mills of district property tax.

Instead of bridging the funding gap with a tax increase, the district could tap its fund balance, which stood at more than $7.4 million at the end of the 2021-22 year.

The district transferred $531,541 from the fund balance to shore up the current year’s $49.1 million budget.

District business manager Allison Willis noted the 2023-24 budget figures are “very preliminary.” In preparing an initial budget projection, Willis said, she banked on just 50% of the $650,482 state funding increase for Greensburg Salem proposed by Gov. Josh Shapiro.

“Because there was a late start on the (state) budget, the likelihood of that budget being passed by June, by the time we need to approve our budget, probably won’t happen,” she said.

The school board is expected to vote on a tentative budget May 17 and a final budget on June 21.

Willis is anticipating an $80,000 drop in annual federal funds. In addition, one-time federal pandemic recovery funds Greensburg Salem received under the Elementary and Secondary School Emergency Relief program are expiring.

Willis reported the total assessed valuation of properties in the district is slated to drop in the coming budget year by $35,580, with successful tax assessment challenges playing a factor.

“In 2021-22, we had a decent amount of tax appeals,” Willis noted.

But, overall, she said, local revenues are projected to increase, by $218,892, or nearly 0.9%. Contributing to that gain are rising collections from the district’s wage tax and higher interest earnings on investments.

In January, the school board adopted a resolution agreeing that any property tax increase it might levy in 2023-24 would not exceed 4.76 mills, a figure determined through a state index.

“By passing that resolution, you’re not at all saying that you are having a tax increase,” Willis told the board. “You’re just saying that you will live within the means of the index set for that school year.”

If the board agrees to hold the tax line at the current 89.72 mills, she said, a homeowner with a median assessed property value of $17,200 would pay a tax of $1,543.

Greensburg Salem also is awaiting a final cost for employee health care premiums, obtained through a consortium serving multiple school districts.

That cost is tentatively expected to increase by 11%, contributing to projected district health care costs totaling in excess of $4 million.

“That is well below what the trend is,” Willis said, indicating some other health care consortiums are looking at premium rate hikes of up to 18%.

The covid-19 pandemic disruption of routine medical appointments may have influenced rising health care costs.

“Now we’re seeing some higher claims because what may have been caught by going to your doctor and doing your preventive maintenance didn’t happen,” Willis said.

On a positive note, she said, the district’s rate of contributing to a state employee retirement fund is set to decrease next school year, from 35.62% to 34% of the payroll total.

“It’s the first decrease in the rate since 2008-2009,” she said.

She said that rate reduction is expected to offset a projected $694,000 increase in district salaries.