Leechburg Area School Board approved a $15.3 million preliminary budget for next fiscal year that would increase property taxes by 6.7% for West Leechburg residents, even though the proposed spending plan is $80,000 smaller than this year.

The school district is made up of students from Armstrong County’s Leechburg and Gilpin and Westmoreland County’s West Leechburg. Taxpayers in the two counties pay different real estate tax rates.

The tax rate for property owners in Armstrong County would remain 75.1 mills. At that rate, the owner of home assessed at $26,848 would continue to owe roughly $2,016 a year.

Property owners in Westmoreland County’s West Leechburg would see their tax rates go up by 8.89 mills to 140.54. The owner of a home assessed at $18,355 would owe about $2,580, an extra $164 a year.

Business Manager Brad Walker attributed the proposed tax increase to a State Tax Equalization Board calculation for multi-county school districts.

STEB’s primary function is to determine the aggregate market value of taxable property in each political subdivision and school district in Pennsylvania. The market values are used in a legislative formula that determines the distribution of state subsidies to each school district, according to the state Department of Community and Economic Development.

“In terms of fairness, the district is following the state-driven methodology for multi-county school districts,” Walker said.

The school board cannot influence the STEB process, board President Neill Brady said.

The district is expected to receive an estimated $14.8 million from local, state, and federal sources, but will lose an estimated $285,000 in revenue due to the ongoing coronavirus pandemic, Walker said. The proposed budget has a deficit of roughly $552,000, but that is being covered by the current fund balance of about $5.2 million, Walker said.

“The budget will be discussed again with updates this month and a finalized presentation in June for adoption,” Walker said.

The next school board meeting is set for 7:30 p.m. Wednesday via Zoom.

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