Pine-Richland's 2022-23 budget holds property-tax rate 6th consecutive year

Pine-Richland School District’s 2022-23 budget calls for spending to increase by 5.8%, but keeps the property-tax rate at the same level for the sixth consecutive year.

The more than $101.35 million budget — up from $95.75 million for the 2021-22 school year — was approved unanimously by the school board and covers the fiscal year that began on July 1.

Next year’s budget anticipates a little less than $99.44 million in revenue and will be balanced with more than $1.9 million left over from this year, with the fund balance earmarked for capital improvements.

By leaving the 19.5867 mill rate used to calculate real estate tax bills unchanged, the owner of a property assessed at the district’s median value of $258,500 will continue to pay $5,063.16 a year to fund school operations.

Pine-Richland’s millage rate has been unchanged since the 2017-18 school year, when it was increased by 2% over the previous year.

Money collected from the property taxes is expected to generate more than $54.1 million in revenue — 3.8% more than this year — and will fund 64.48% of next year’s budget.

Wage and other taxes collected by the district will account for 10.51% of next year’s revenue, with the remainder coming from state, federal and local subsidies. The district anticipates receiving increases of about 1% in its basic education and special education subsidies from the state along with a 2.67% increase to cover transportation expenses.

Salaries and benefits will account for 64.13% of spending next year, with 21.60% earmarked for operating expenses and 8.54% for debt service. The remainder will be placed in reserves for capital projects and other costs.

The district’s share of the contribution to the state-run employee retirement system will increase by 5.3% from 34.94% of the total cost of salaries to 36.78%. The increase will result in an additional cost to the district of $226,480 after it receives a reimbursement from the state.

Pine-Richland also will pay nearly $443,000 more next year to cover an 8% increase in medical insurance costs and a 3% hike in the cost of premiums for dental and vision coverage.

District officials noted in the budget that the state mandate for school districts to pay the cost of students who attend cyber or charter schools has increased steadily in the past 15 years.

In the 2007-08 school year, Pine-Richland paid a little more than $100,000 for students to attend outside schools. The cost next year will be about $1.37 million, according to district officials, who noted that the state education department no longer reimburses a portion of the cost for students to attend cyber and charter school or those who are in dual enrollment programs or are home-schooled.

District officials said Pine-Richland spends about $12,400 to educate a student in a regular school setting compared to more than $27,100 when they attend a cyber or charter school.