Norwin proposes 2.9% hike in school taxes

North Huntingdon, Irwin and North Irwin property owners will pay 2.9% more in school real estate taxes for 2020-21 fiscal year under a $76.4 million tentative budget unanimously approved Monday by the Norwin School Board.

The proposed tax increase would raise the millage by 2.4 mills to 84.8 mills for property owners in the three Westmoreland County municipalities for the next tax year, which begins July 1. For the 18 property owners in the Allegheny County portion of the district, taxes also will increase by 2.9%, from 12.36 mills to 12.72 mills. The millage rate is different for residents in the two counties because of differences in property assessments for tax purposes.

District property owners in Westmoreland with an average assessment of $22,000 would pay an extra $54 a year, Ryan Kirsch, business affairs director, told the board in budget presentation this month.

The tax hike would generate about $900,000 in revenue, which partially covers the $2 million budget difference between proposed revenue and expenditures, Kirsch said. With all of the housing construction and commercial development within the school district, Norwin saw the assessed value of all property increase by $325,000, Kirsch said. That generates more revenue for each mill levied.

To keep the real estate tax hike at 2.9%, rather than the maximum 3.4% permitted under state taxing formula, the district intends to tap its fund balance.

Of the 84.8 mills levied by the school district, 1.2 mills is earmarked for the Norwin Public Library, as approved by a voter referendum. That is equal to $495,000, Superintendent Jeff Taylor said.

Taylor said there will be six more weeks to review the budget before it is to be approved in June, which will give the administration time to look closely at cutting costs and increasing revenue.

Norwin likely will see a drop in property taxes and earned income taxes because of the economic damage from covid-19. This comes at a time when the district has had to spend more money on buying employees protective equipment like masks and special clothing for the janitors.

Because of the state’s loss of revenue from the shutdown of businesses and loss of taxes from workers who lost their jobs, there is a “distinct possibility” Norwin may not receive an increase in its basic education subsidy or special education allocation.

While no one voted against the budget, several members expressed their desire to see the preliminary budget cut, before the final budget comes to a vote.

Director Don Rhodes said he would vote for the preliminary budget knowing “the administration is going to take a hard look at this.”