There's bad news and there is good news, sort of, for Kiski Area School District residents in the 2015-16 proposed budget.
The bad news is that a tax increase seems likely to fund the $56.4 million in expenditures, which is $3.3 million more than the $53.1 million in projected district revenues.
While that deficit is equivalent to 13.2 mills of real estate taxes, the good news is that, under the state's Act 1 index, any tax increase won't come near that number.Business Manager Peggy Gillespie, who presented the preliminary budget, said under Act 1, the district has to hold to the 2.6 percent index limit on tax increases. That means the increase in revenue cannot exceed $430,678. She said that would result in a 2.17 mill increase for Kiski's Westmoreland County residents and 0.73 mills for Parks Township, the only Armstrong County community in the district.
According to Gillespie, it would be an increase of $35.79 for a Westmoreland house with the average assessed value of $16,492. The total millage in Westmoreland would go from 83.45 mills this school year to 85.62 mills.
For a house in Parks at the average assessed value of $22,760, the 0.73-mill increase would add $16.61 to its tax bill. In Armstrong, the millage would rise from 40.39 this year to 41.12 in 2015-16.
Gillespie said the budget includes a little more than $1 million just for retirement costs. After the district receives its reimbursement for the state's share of the pension increase, the district's net cost would be almost $426,000.
She said that equates to 1.7 mills and noted that it would eat up almost all of the $430,000 raised by the projected tax increase.In addition, special education costs will rise by $182,000 while salaries and benefits will add about $524,000 to the budget. However, Gillespie said the overall salary increase in the district was held to 1.9 percent this year.
At the same time, she said $220,000 in maintenance projects, $184,000 in technology equipment, $14,000 in furniture and supplies, and $25,000 in athletic supplies were shaved from the budget and, along with $266,000 in retirement savings, combined for $710,000 in budgetary reductions.
Gillespie outlined about $272,000 more in budget reductions that may yet be made. They include $98,000 for two teaching positions, $42,000 for a maintenance vehicle and about $101,000 in curriculum equipment.
“In some places, they talk about cutting out the fat. There is no fat here,” Superintendent John Meighan said.
The district's $3.3 million fund balance will provide some relief for the 2015-16 budget with about $1.97 million being used to help balance it.
Some factors that Gillespie listed as budget variables may come into play, including the state budget, charter school reform, pension reform, the state's special education budget and contract negotiations with the district's teachers.
Tom Yerace is a staff writer for Trib Total Media. He can be reached at 724-226-4675 or tyerace@tribweb.com.
