Fox Chapel Area School Board approves budget with 1.5% tax hike

The Fox Chapel Area School Board adopted a budget for the 2022-23 school year that outlines $111 million in spending and enacts a 1.5% property tax increase.

The board voted 7-0 on June 13 to approve the spending plan, which made no cuts to programs or staffing.

Board President Marybeth Dadd and board member Amy Cooper were absent.

The tax increase raises the property tax rate by 0.3019 mills to 20.4288 mills. The overall tax hike is expected to produce about $1.07 million in additional revenue for the district.

The district had raised taxes for the 2021-22 school year by 1.3%, setting the millage rate at 20.1269 mills, according to the Allegheny County Treasurer’s Office.

For every $100,000 in assessed value, a property owner would pay $30 more in property taxes a year, according to the district.

Board members unanimously approved the preliminary spending plan May 9.

“There were some minor adjustments based on updated projections, but there were no major changes since the preliminary budget,” said Eric Hamilton, board member and treasurer. “I think we have a responsible budget that meets the needs of the district and the expectations of our residents for high quality programs. We’ll be able to continue to offer the excellent programs and services that this community expects.”

The board in January pledged to keep any tax increase to within an inflation-based state limit.

Act 1, passed in 2006 to provide property tax relief, sets a tax cap for school districts to cover normal, inflationary costs and still pass a balanced budget without exceeding the tax-hike cap. In Fox Chapel’s case, the index for next school year is 3.4%, or 0.6843 mills.

Hamilton said increased costs because of inflation, as well as insurance and pension obligations, necessitated the tax increase.

“We will have continuing challenges with expense management overtime with rising health care expenses and other inflationary expenses that are impacting everybody,” Hamilton said. “We’ll have to keep an eye on that next year.”

Board member Vanessa Lynch, who had voted against the budget and tax hikes the past two years, agreed with Hamilton’s assessment.

“With the budget pressures the district is facing, raising taxes can be one tool to meet budget changes but should be used judiciously,” she said. “I remain dedicated to protecting our residents from perpetual tax increases.”

District officials projected an 8% increase in health care premiums, a 3% increase in each of dental and vision plans, a 8% increase in cyber and charter school tuition costs and a 6% hike in pension contributions.

Revenues were listed at about $109.3 million with expenditures at $111 million, the $1.7 million difference will be covered by reserve funds and revenue from the tax hike.

The 2022-23 budget also includes a transfer of $2 million into a capital reserve fund to be put toward larger-scale capital improvement projects, which include heating, ventilating and air conditioning upgrades at Hartwood Elementary School; an internal lighting project at Hartwood; and turf replacement at the high school for the baseball, softball and multipurpose fields.

It also allots $1 million in federal stimulus funds for summer learning programs, student and staff support services and the replacement of windows at Dorseyville Middle School.

Hamilton commended the administration, as well as the resource planning committee and the projects and planning committee for their hard work. The resource planning committee contains community members while the projects and planning committee is a subcommittee of the school board and focuses on capital improvements.

The 2022-2023 budget is available for review on the district’s website, fcasd.edu.