New Kensington-Arnold school board approves 3.7% property tax increase with 2020-21 budget

The New Kensington-Arnold School Board on Tuesday approved a 3.7% increase in the district’s property tax rate along with approving the district’s $40.25 million budget for the 2021-22 school year.

It will increase the district’s property tax rate from 88.27 mills to 91.57 mills. It’s less than the 4.4% maximum the district was allowed by the state, which would have provided for a rate of 92.15 mills.

Even with the tax increase, New Kensington-Arnold expects to spend about $25,500 more than it will collect in revenue. The shortfall will be covered from the district’s reserves.

With no tax increase, the deficit was calculated at about $393,000.

The budget and tax increase were approved on votes of 6-2, with board President Tim Beckes absent.

Board members Eric Doutt and John Cope both voted cast the no votes, but for different reasons.

“I don’t think the community can afford a tax increase,” Doutt said after the meeting. “It’s too much of a burden on our elderly community.”

Cope, however, said he wanted a higher tax increase of 3.8 mills.

“The 3.3 mill raise will not cover our debt. It’s as simple as that,” he said.

Cope called the half-mill difference between a 3.3 mill increase and a 3.8 mill increase “negligible.” For a home with a $20,000 assessed value, a 3.3 mill increase adds about $66 to the annual tax bill; at a 3.8 mill increase, it’s $76.

“The reason we’re in the situation we are is that seven out of 11 years the taxes weren’t raised,” Cope said.

The increase follows a 3 mill increase that was approved for the 2020-21 school year to support a budget of $37.9 million.

Increasing the property tax rate also lowered the homestead exclusion amount, from $3,787 to $3,357, a difference of $430, or an 11% reduction. The district has 3,831 approved homesteads.

The district did not announce any staff furloughs, but will be offering an early retirement incentive providing health care coverage.

As approved, acting Superintendent Jon Banko said an employee would still need to have 30 years of employment, but the age requirement has been lowered from 55 to 53.