Armstrong School District taxpayers will pay a 4 percent tax increase, as district administrators continue to whittle away at a $5 million deficit.
The district's budget for the 2014-15 school year reflects a 2.33-mill tax increase in an attempt to balance its projected $97.3 million in expenses and $92.3 million in revenues, said Business Manager John Zenone.
“We're looking at all of our contracts, and since January, we've been doing a lot of cutting,” Zenone said. “That's what we're going to keep doing so we can get to a balanced budget, and we're going in the right direction.”
Armstrong School District assesses 56.64 mills of real estate tax. The increase would bring the tax rate to 58.96 mills and raise $1 million for the district.
The tax rate could increase by nearly a half-mill more if the district seeks an exception to the Act 1 cap to help cover pension costs, Zenone said.
That would net an additional $241,000 for pension contributions, he said.
Officials saw several revenue streams grow, including a $590,000 growth in assessed property values, but realized several increases.
About 65 percent of the district's budget goes toward salaries and benefits.
While the district saw a $557,000 decrease in salaries — because of 38 retirements and resignations — it realized a $1.4 million increase in health insurance costs, Zenone said.
“Our insurance costs could go even higher, but we won't be sure until the end of the month,” Zenone said.
Administrators expect no increase in basic education funding from the state. Gov. Tom Corbett's $71.8 billion 2014-15 budget includes $28.5 million allotment for the district.
“The budget has not been finalized yet, so some things, like Accountability Grant funding could be available,” Zenone said. “But then again, it could be cut, so we have to wait.”
The district's budget includes about $2 million to pay for charter school tuitions, which is no longer reimbursed through state funding.
Zenone said planners are waiting for figures on the district's federal revenues, but do not expect to see any increases.
The board plans to pass a final budget on June 16.
Brad Pedersen is a staff writer for Trib Total Media. He can be reached at 724-543-1303, ext. 1337, or bpedersen@tribweb.com.
