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No tax increase planned in preliminary Hempfield Area budget | TribLIVE.com
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No tax increase planned in preliminary Hempfield Area budget

Megan Tomasic
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Tribune-Review

Residents in the Hempfield Area School District will not see a tax increase after school directors on May 16 unanimously passed a $100.9 million preliminary budget.

This is the fourth consecutive year that taxes held steady, following five years of gradual increases. Taxes will remain at 83.46 mills.

Of the projected revenue, 61% comes from local sources, 37% from state funds and 2% from federal funds.

“This year is a little bit different on the revenue side,” district business manager Wayne Wismar said. “I think there’s a little bit more optimism than typical on the revenue side, which is certainly different than most recent years.”

According to Wismar, state funds are expected to generate $37.4 million in revenue. He cautioned, however, that Gov. Tom Wolf’s budget, which was proposed in February, has not yet been approved. The proposed budget includes a 22% increase in basic education funding and a 16% increase in special education funding.

If the state budget is approved as it stands, Hempfield could receive an additional $2.5 million in basic education funding and about $404,200 in special education funding.

For the 2021-22 school year, about 40% of the governor’s proposed increases were approved.

Local revenue also could see an increase, according to projections.

That includes a $600,000 increase expected in earned income tax collections, based on projections from Berkheimer Tax Collector.

In all, the district is expecting $61.2 million in local revenue.

So far, federal funding is the only area where district officials are anticipating a decrease. Title I, II and IV funding is expected to be reduced by 6% for the 2022-23 school year, which is an almost $87,600 reduction for Hempfield. At this time, covid-related emergency funding is budgeted at $1.1 million.

The district is projecting $2.3 million in federal funding.

“Revenue projections were positive for 22-23, which really assists with balancing the budget without a tax increase for 22-23,” Wismar said.

On the expenditure side, $43.5 million goes toward salaries, $15.1 million for retirement, $9.5 million for debt service, $8.1 million for medical and $2.6 million for charter school tuition. Wismar noted that the debt service may be adjusted based on a bond issue taken out this year to cover the cost of a high school renovation project.

School board members will vote on the final budget during their June 20 meeting.

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Categories: Local | Westmoreland
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