Penn Hills School District officials raise taxes, maintain programs in 2020-21 budget

Penn Hills School District officials maintained all programs and raised real estate taxes as part of their 2020-21 budget.

School directors unanimously approved a 3.6% tax hike on June 29.

The increase brings the new tax rate to 29.6965 mills, a 1.0319-mill jump from the current rate.

District Business Manager Eileen Navish said it equates to a property owner with the median home value of $74,300 paying about $77 more in taxes next school year, or close to $10 per the eight-month installment plan.

The budget is balanced with projected expenses and revenues at about $87 million.

Board President Erin Vecchio said they had to raise taxes because the district can no longer wait for promised state money to balance the budget.

“They’re playing politics in Harrisburg with our money,” Vecchio said. “I can’t depend on Harrisburg. I’m not laying off any more people in this school district. It’s our responsibility to move this district forward, and Harrisburg does not properly fund public education. They better figure out how to do it because you can’t keep taxing people and their houses.”

District officials declined to raise taxes as part of this year’s budget after state Sen. Jay Costa, D-Forest Hills, promised to get them $3.3 million. Only $2 million of that has made it to district coffers so far.

Navish said about $650,000 of the $1.3 million would come to the district in the form of a state Department of Community and Economic Development grant.

Costa was working on acquiring more state funds for the district for next year, but there might not be monies available because of state revenue shortfalls caused by the covid-19 pandemic.

The district was placed in financial recovery status last year. It’s about $170 million in debt largely due to construction loans for the high school and elementary school.

Officials have cut costs by the millions and continue to restructure staffing as part of recovery efforts.

“We’ve made tremendous progress in the past few years bringing our negative fund balance from over $12 million to a projected of down closed to $5 million at the end of this year,” board member Rob Marra said. “By keeping a balanced budget, we can continue moving forward and hopefully get out of recovery someday.”

District officials planned to furlough seven teachers, one custodial/maintenance staffer, one secretary and one administrator due to declining enrolment.

Vecchio said most of those cuts ended up being retirements.

Marra noted the board did not have to seek a tax anticipation note this year because of frugal spending and some financial adjustments. Tax anticipation notes are loans districts and municipalities take out to help cover expenses until tax revenues start coming in.

Navish explained multiple factors came into play for Penn Hills not to need a nearly $10 million loan.

The district saved money on security, transportation, substitute teachers and teachers aids and utility costs with the schools being closed. It also saved about $2 million by refinancing 2009 and ’13 bonds, used $1 million of a $1.24 million transitional loan for charter school payments, and money from its state retirement subsidy was able to be repurposed.

District officials also brought back 14 of 21 custodians furloughed last month in preparation of schools continuing to be empty because of statewide school shutdowns during the pandemic.

Superintendent Nancy Hines said administrators are still reviewing three scenarios for how to educate students next school year.

One plan involves bringing all students back to the buildings.

Another would split class time and possibly have students come in a few days a week while continuing distance learning the other days.

The third would keep students out of the schools like they have been since mid-March because of covid-19 school closures.

Hines said letters would be going out to parents this week with more information, and a final decision would be made by Aug. 5. The first day of classes is scheduled for Aug. 25.