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Hempfield school board must close $3M deficit in next year's budget | TribLIVE.com
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Hempfield school board must close $3M deficit in next year's budget

Quincey Reese
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Sean Stipp | TribLive
The Hempfield Area High School campus.

The Hempfield School Board will vote next week to adopt a preliminary 2024-2025 general fund budget, which includes a $3 million deficit.

The proposed budget includes nearly $106.6 million in total revenues and about $109.6 million in expenditures, according to district business manager Paul Schott.

This is a 0.36% decrease in revenues and a 2.48% increase in spending from this school year, he said.

The school board will either have to find additional funding or cut expenses because state law requires school districts to pass a balanced budget.

Schott said the deficit was not caused by the now-stalled high school renovation project.

The renovation has been on hold since August, when the first bidding phase came in millions of dollars over budget. It cost the district $2.4 million in payments to Core Architects, which resigned from the project in February.

The project is supported by a 2022 bond fund, which is separate from the district’s general fund, Schott said.

Schott said the proposed drop in revenue is caused partially by the loss of temporary federal covid pandemic relief funding, which will end in June.

But the deficit could be lessened or eliminated with Gov. Josh Shapiro’s proposed state budget, which would distribute about $1 billion to the state’s 500 school districts and set a flat payment of $8,000 for charter school tuition.

At Hempfield, the current charter school tuition rates are $13,661 for traditional students and more than $26,000 for special education students, Schott said.

“Putting those two together, we would be seeing budgetary relief of $3.1 million. If we would actually get those amounts, it would wipe out our deficit for next year,” Schott said. “Now, what is the likelihood of those two things coming through? Probably not very good. I hate to say that.”

The real estate tax for next school year has yet to be determined.

The district’s current millage rate is 85.76 mills, the second lowest in the county, he said. Hempfield has increased its real estate tax millage rate eight times over the last 12 years.

The school board will vote to pass the final budget June 24.

Quincey Reese is a TribLive reporter covering the Greensburg and Hempfield areas. She also does reporting for the Penn-Trafford Star. A Penn Township native, she joined the Trib in 2023 after working as a Jim Borden Scholarship intern at the company for two summers. She can be reached at qreese@triblive.com.

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Categories: Local | Westmoreland
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