Peters Township School District proposes tax increase
A .31-mill real estate tax increase is proposed for Peters Township School District.
If adopted along with the final 2018-19 budget, the new rate will stand at 13.5 mills, representing a 2.4 percent increase over the current figure. That matches the maximum increase allowed under the state’s Act 1 of 2006 without the district seeking an exception.
Township property owners would pay $1,350 for each $100,000 in assessed value, or an extra $31, for the coming fiscal year.
The board plans to vote May 21 on the proposed final budget, and the vote on the final document is expected June 25.
During a finance committee meeting on April 30, school board members and administrators discussed the $65.85 million proposed budget, addressing revenue sources and areas of expenditures while comparing Peters Township’s financial picture with nearby districts.
In January, the board approved a resolution not to request an exception to the 2.4 percent state index for a tax increase. At that point, estimates showed that a 13.5-mill rate would cause a budget gap, revenues lagging behind expenditures, of $209,659.
Ensuing adjustments reduced projected expenditures by $605,877, compensating for some decreases in anticipated revenue, including state reimbursement for major projects under the Department of Education’s PlanCon program.
Business manager Brad Rau attributed the drop to the district’s attaining more favorable interest rates on debt.
The reason is because of our bond issues,” he explained. “We had a couple of refundings in those bond issues, and we received PlanCon money for those issues. So the state wants their piece of the money back.”
Accordingly, the estimate of overall state funding for the district drops slightly, by $53,822, from the current fiscal year to the next.
Meanwhile, projected local revenue increases by $1.58 million, constituting 75.24 percent of the budget’s total.
Regarding expenditures, instruction constitutes the majority of 2018-19 costs: $39.07 million, or 59.3 percent. That represents a decrease from the current year’s 60.5 percent for teacher and paraprofessional salaries, along with other outlays for the classroom.
Among Washington County districts, Peters’ current rate is exceeded by four of the other 13: Charleroi Area, 15.8306 mills; Washington, 15.1578; Ringgold, 13.7205; and Trinity Area, 13.6.
In presenting budget figures, Peters Township administrators also offered comparisons to other districts in terms of “return on investment,” plotting PSSA scores against expenditures per student.
Even though Peters averaged about $14,000 for 2016-17 – Washington County districts listed varied from slightly above that figure to McGuffey’s $18,000-plus – its test results ranked significantly higher.
“We are, again, spending very wisely on our per-pupil cost, but our achievement is high,” Superintendent Jeannine French said. “What that says is that the board is making very good decisions in terms of where to invest the money to get the best outcomes for our students.”