Allegheny Valley School District budget proposes 2.65% tax increase

Property owners in the Allegheny Valley School District could see a 2.65% tax increase next school year.

District Finance Director Hamsini Rajgopal is proposing a $25.8 million budget for the 2024-25 school year.

A property owner with a median assessed value of $85,900 would pay $1,837 annually in taxes, Rajgopal said.

Property owners with the median assessed value who qualify for the state homestead exemption would pay $1,625.

The tax millage would increase from 20.8377 mills to 21.3899 mills, which would be an increase of a little more than $47 annually for the average property owner in the district.

The tax increase addresses increasing costs of salaries, health insurance and programs, Rajgopal said. The budget keeps all existing programs in the district.

Allegheny Valley hasn’t increased taxes since the 2018-19 school year.

The district’s proposed $25.8 million budget is about $1.2 million, or 4.9% larger, than this school year’s budget.

Rajgopal told school directors she recommended an increase because, when drafting the proposed budget, there was about a $294,000 shortfall.

She recommended against using the district’s fund balance to cover the deficit, warning that it would compound. She said it would be more fiscally responsible to save that money for future capital projects.

The budget “keeps pace” with increasing salaries and benefits, program costs, county assessment valuation changes, rising healthcare costs and insurance costs, Rajgopal said.

“The 2024-25 budget is student focused and ensures that all students have the resources they need to be successful at Allegheny Valley,” Rajgopal said.

The school board will consider passing the budget June 25.