Norwin's $4.1 million budget deficit sparks debate

Norwin school officials this week debated how to address a possible $4.1 million deficit in the district’s budget for the upcoming school year, prompting a discussion over staffing and possible cuts to avoid raising taxes a maximum of 4.4%.

Expenditures are projected to be about $83.5 million for the 2022-23 school year, but the revenues are expected to be about $78.9 million without any tax increase, said Ryan Kirsch, Norwin director of business affairs. Transferring $400,000 from the budget reserve fund would reduce the deficit to about $4.1 million.

Norwin could address the deficit by taking $4.1 million from the fund balance without hiking real estate taxes, but that would drop the balance from $11.2 million to $7.9 million, Kirsch said.

The tentative budget is to be presented at the board’s May 16 meeting for a vote.

The board in January had passed a resolution that it would not raise real estate taxes more than 4.4%, which is the inflationary index under a formula determined by the state.

If the board were to raise property taxes by the maximum, it would push real estate taxes for property owners in North Huntingdon, North Irwin and Irwin by 3.73 mills, from 84.8 mills to 88.53 mills. The tax levy in Westmoreland County includes 1.2 mills collected by the school district each year for Norwin Public Library, as approved in a voter referendum.

A tax hike of 4.4% would raise the school taxes by $83 on the median assessed value of residential property, which is about $22,310, Kirsch said in a budget presentation.

For the 18 properties that Norwin serves in Allegheny County, the millage would increase by 0.5 mills, from 12.72 mills to 12.77 mills.

Director Alex Detschelt said he would not vote for any tax increase, saying he did not see evidence of any cost-cutting measures being pursued. The district should look into “addressing staffing” as a way of cutting costs, he said.

Taxpayers can’t afford a tax increase in these times of “hyperinflation,” Director Bob Wayman said.

“The only way is to cut expenditures,” Wayman said.

If the board does not increase taxes, “students and facilities will be affected,” board President Darlene Ciocca said.

Detschelt questioned the previous board’s approval of a new contract with the Norwin Education Association in November, leaving the board to deal with the “sins of the father.”

Director Raymond Kocak, who voted for the pact, said that the negotiations resulted in annual pay raises of under 3% for the six-year term of the contract.

“It was a huge win in our efforts to cut costs.” Kocak said.

Director Shawna Ilagan suggested the district sponsor a contest for residents to suggest cost-cutting measures and offered a $50 gift certificate to the winning suggestion.

When Ilagan suggested the school district should be run as a business, aligning expenses with revenue, Superintendent Jeff Taylor said that is not so simple, as school districts face requirements unlike other industries.

“We have 500 mandates,” Taylor said.

While there were suggestions of addressing staffing issues, Taylor said Norwin was required recently to hire two special education teachers.

Taylor also pointed out there are “significant staffing challenges,” resulting in the district raising wages for some employees to attract workers.

“We did not have enough substitute teachers and still not enough paraprofessionals” and substitute teachers, Taylor said.

“We don’t see that going away any time soon,” he said.