Freeport Area School District may have to dip into its fund balance to eliminate an operating deficit at the end of the school year.

That could result in a real estate tax hike to start the next school year.

As of Thursday, the 2021-22 budget had a $2.4 million deficit, which is down from a $3.3 million shortfall in February.

Freeport Area has a $6.3 million fund balance that would be dipped into should the current deficit persist. State education officials recommend a $4.8 million fund balance, set aside for “rainy days,” for Freeport Area.

Business manager Brad Walker is working on next school year’s budget, which is up for preliminary approval in May. School district fiscal years run from July 1 to June 30.

Walker indicated he will present a three- to four-year budgetary projection to the school board in April.

Freeport Area has a $36.8 million budget this school year.

Buffalo Township homeowners are paying an average of $93 more this school year, a 3% increase, while Freeport and South Buffalo saw a $62 or 2.5% average hike this school year.

The current tax rate is 154.40 mills for Buffalo Township and 65.9 mills for Freeport and South Buffalo.

The school district hasn’t raised taxes in three of the past five school years.

Officials said the tax hikes in the past five years have been one each for Butler County property owners in Buffalo Township and for Armstrong County taxpayers from Freeport and South Buffalo.

Those hikes were part of an equalization process when a school district crosses county lines and different property assessments take place. Freeport Area is one of 84 school districts in Pennsylvania that cross county lines.

Not all school directors are on board with the specter of a tax hike.

“We have 25% senior citizens in this district. We have an expense problem, not a funding problem,” school board member John Haven said. “We should take a sharp pencil to the budgets.”

Superintendent Ian Magness indicated the district has taken steps in the past, noting that there were five teacher retirements at the end on the 2017-18 school year and only one retiree was replaced.

Thursday night, the school board accepted the retirement of teacher William L. Siegel, effective June 30.

“We have less staff and resources, and we’ve pulled ourselves up by the boot straps,” Magness said, recalling how the athletic budget was cut in the past. “We can say ‘no’ to a lot of things and get that 2.4 (million) number down as far as we can.”

One major expense for the school district is special education. Magness said feedback has indicated families are moving into the school district because of the special education program.

Looming are a new teachers contract and renovations to the senior high building, opened in 1961.

“We need to figure out a plan and stick with the plan,” board President Adam Toncini said. “We need to be better positioned for renovations.”

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