Greater Latrobe School District officials have recommended that the school board include a 1-mill property tax hike when it approves a proposed 2021-22 budget at its May 25 meeting.
District business administrator Dan Watson suggested the tax increase, to 85 mills, to help cover an expected shortfall of $345,000 in a projected budget totaling more than $57.7 million.
Watson reported on Tuesday that the district is emerging from the first year of the covid-19 pandemic with a local revenue stream that is much better than originally expected. But, he said, “I think, if you don’t consider a 1-mill increase, it’s only going to compound itself year after year, and we’ll be in a much worse situation.”
The board has approved annual tax hikes of at least 1 mill in recent years, including a 1.75-mill increase for 2020-21.
According to Watson, Greater Latrobe has one of the lowest millage rates among school districts in Westmoreland County. If the recommended increase is approved, it would cost the average district taxpayer an extra $27 per year, he said.
Watson’s budget scenario assumes the district will use about $350,000 in one-time federal Elementary and Secondary School Emergency Relief (ESSER) funding to help offset earned income tax revenue that was lost during the pandemic.
He said Greater Latrobe is on track to bounce back in the next few years to its pre-pandemic level of $3.9 million in annual wage tax collections. Projections indicated that figure should have dropped to $2.9 million during the pandemic, but Watson said actual district collections had a shorter fall, to $3.1 million, and already are looking to rebound to $3.6 million.
He proposed using about $200,000 in ESSER funding to purchase instructional technology for students and another $145,000 to pay for new curriculum and to cover staff development costs.
“We’re still going to see a gradual growth in operating costs that we’re going to need to make sure to give consideration for when setting any future millage amounts,” he said.
Watson is projecting all district revenue sources will total about $57.4 million in the coming school year, representing a .56% increase from this year. Expenditures are slated to increase by 1.17%, to $57.7 million.
Salaries and benefits, already established in district labor agreements, represent 70% of district costs and are set to go up by 2.32% and 2.44%, respectively — by almost $944,000 combined, according to Watson.
Tax rebate proposed
Watson suggested the district offer a property tax rebate program for eligible taxpayers, as it has in the past. It would follow the guidelines of a similar state program — except that only property owners could benefit, not renters.
The rebate would equal 5% of the amount provided in the state program, up to a maximum of $32.50, not exceeding the total property tax bill.
It would be offered to those age 65 or older, widowed people age 50 or older and those age 18 or older who are permanently disabled. The recipient’s household income can’t exceed $35,000.
