South Fayette adopts school budget without tax increase
After raising the real estate tax nine out of the last 10 years, the South Fayette School Board will not do so next school year.
At its June 27 meeting, the board unanimously adopted a budget that will keep the tax rate at 26.7 mills. For every $100,000 in assessed value, property owners will continue to pay $2,670.
“We’re very pleased we were able to create a fiscally responsible budget that has a no tax increase for our constituents,” said Superintendent Bille Rondinelli, who also announced during the meeting her plans to retire. “We always work to be financially stable and conservative, and we were very pleased to be able to do that this year.”
With expenditures projected at roughly $55.89 million and revenue at $53.56 million, the board will transfer the $2.33 million difference from the district’s fund balance. The projected fund balance will fall from about $20.83 million to $18.5 million.
Following presentation of the budget from finance Director Brian Tony, the board approved the budget with little discussion. Once passed, several board members appeared relieved.
“No tax increase,” said Leonard Fornella, board president, after the passage. “Everybody’s happy with that.”
The budget passed with little discussion, as the board member said they planned to not raise taxes entering the meeting.
“We were committed this year from the beginning to not have to increase taxes,” Fornella said. “We wanted to make sure to give the taxpayers a breather and alleviate them.”
Presented to the board from the business office were two different budgets. The first, which they approved, includes no tax increase. The second would have raised the rate anywhere up to the allotted index, which is .8544 mills.
Rondinelli said budgetary challenges continue to consist of the state pension funding requirements, as well as the rapid growth of the district, which she said adds about 100 new students each year.
“It’s very complex situation,” she said. “We do have a higher millage rate, and we’re always concerned with that.”
Also in the 2017-18 budget, the unassigned fund balance is projected at $2.61 million.
Increased expenses include approximately $1.24 million for new staffing for teachers, custodial and maintenance personnel; $518,911 for the Pennsylvania State Employees’ Retirement System pensions; $445,149 for special education; and $421,969 for debt service.