Penn Hills School District 2023-24 budget approved with no tax hike, program cuts

Penn Hills School District property owners will not have to dig deeper into their wallets to pay real estate taxes in the upcoming school year.

School directors approved their 2023-24 budget with no tax hike and no cuts to programs or staffing.

The vote was 8-0 at a June 28 board meeting. Board member Devon Goetze was absent.

Projected revenues and expenditures were listed at about $97.31 million, a boost of nearly $1 million from the proposed final budget about a month ago.

Income includes about $52.77 million in local revenue including current and delinquent real estate taxes, more than $38 million in state funds such as educational and transportation subsidies and $6.26 million in federal funds.

Expenses include more than $57 million for educational and vocational instruction, $27.64 million for support services, more than $1 million for student activities and community services and $10.57 million for debt service.

District chief financial officer John Zahorchak said changes in the final budget from the proposed plan included a $585,000 Allegheny County grant for mental and behavioral health programs.

Investment earnings projections also went up an estimated $120,000 on the revenue side while charter school tuition cost estimates were increased by $164,000. Science curriculum textbook spending was also boosted by $150,000.

The budget includes using all of the remaining $2.6 million in Elementary and Secondary School Emergency Relief funds.

“There’s not a lot of room to deviate from the budget,” Zahorchak said.

He noted the district will no longer sell off its delinquent tax collection, a financial move that was done for many years so the district could get funds in advance.

Zahorchak likened the advance to a loan with fees paid for through tax collection. He projects the district will save money long-term by changing this process.

“Back when the school was having difficulty balancing the budget, they did this because they needed the money,” he said. “Now, we’re in a good cash spot and do not need upfront funds. We’re just going to collect the money as it comes in.”

Zahorchak has worked in educational finance since 2009.

He said the changes in Penn Hills’ proposed budget to its final were significant compared to other spending plans he worked on.

“This is more than I think I’ve ever had because we got grants coming in late and getting rid of the (delinquent) property tax (sale),” he said. “There wasn’t a whole heck of a lot of changes, but the numbers were just big.”

Board president Erin Vecchio said the administration and the board worked hard to balance needs of the students with fiscal discipline.

“I think it’s great that we kept the budget right where it was supposed to be,” Vecchio said. “No tax increase is always a good thing for parents and taxpayers of Penn Hills.”

Vecchio said the federal relief funds were a boost for the district and helped free up parts of the budget for various Linton Middle School upgrades such as HVAC and gymnasium projects.

“All we used that for was to improve the school,” she said.

Board member and treasurer Rob Marra echoed Vecchio’s comments and is not concerned about using the last of the federal relief money.

“This is the last year we know we have ESSER funds that are available to us that were part of the stimulus packages,” Marra said. “If you look at the shortfall from revenues to expenditures, without that we would be at a negative, but we have a very positive fund balance right now and we’re going to add to that this year. We’re in very good shape financially right now.”

The district has an estimated $14.5 million reserve fund with an estimated $3 million to be deposited by the end of the fiscal year.

Added safety measures

The district plans to spend about $160,000 on metal detectors for next school year.

They will replace several devices at the middle school and high school.

“Because of what’s going on in the world, I feel we need them in every school,” Vecchio said about the metal detectors.

Gates at school entrances will also be updated. Visitors will need an appointment or family purpose to be on campus during school hours.

More information about the 2023-24 budget, and several previous budgets, can be found under the “Business and Finance” department tab of the district’s website.