Chartiers Valley's budget proposal has no tax increase, but future projections are bleak

Chartiers Valley School District’s proposed budget fills a deficit through bond refinancing and dipping into the district’s fund balance, but that quick fix could come back to bite the district next year.

At a meeting May 14, board members Darren Mariano, Ed Brosky, Louise Huehn, Kate Drury and Jeff Choura voted to approve the proposed budget. Megan Sexton, Mitch Montani and Lisa Trainor were opposed. Herb Ohlinger was absent.

The proposed budget totals just under $78.4 million, a $3 million increase from last year. It keeps the real estate tax rate of 20.1909 mills, meaning there would be no tax increase.

Finance Director Pat Connolly said during budget drafts the district had a $3.1 million budget deficit. Refinancing two district bonds will cut that deficit to $1.9 million. The rest will be met through the debt stabilization and using general fund balances, under the proposed budget.

It will be the first time in seven years that Chartiers Valley’s isn’t expected to raise taxes, but that trend may fade quickly.

Connolly warned of a future compounding effect without tax increases and no other budgetary changes.

On June 30, 2025, the district’s general fund balance is projected to be just over $4 million, and its debt stabilization fund balance would be at $1.1 million.

Without a tax increase, Connolly said, the district’s projected budget deficit for 2025-26 would be $5.6 million, leaving a $445,000 projected deficit if the district uses it’s entire fund balance.

There are no proposed additions or cuts in the 2024-25 budget, but there may be a few staff realignments, filling positions left vacant from either retirements or resignations.

Expenditures next year are anticipated at $78.3 million and revenues are at $76.4 million. Connolly attributed the increase in the budget to inflation, insurance increases and growth in the district.

Under the proposed budget, a home in the district with a value of $200,000 would pay $4,038 annually under the proposed millage rate.

If the district were to raise taxes to its Act 1 index of 5.3%, a home assessed at $200,000 would pay $4,252, a $214 annual increase. That’s a monthly increase of $17.84.

The school board will consider adoption of the final budget at a meeting June 11.