Gateway mulls property tax increase

This article has been updated to include the district’s estimated shortfall as it sat at the time of publication. An earlier version of the story said the shortfall was $1 million. The inaccurate number represented the shortfall with an increase in property taxes included in the proposed budget.

Gateway’s business manager is proposing a property tax increase to fill a $2.2 million shortfall in the school district’s preliminary 2019-20 budget.

District Business Manager Paul Schott said the proposed tax rate of 20.4039 mills would bring around $1.2 million in additional revenue.

That rate hike represents .5364 mills, or 2.7 percent, more than its current rate of 19.8675.

Schott presented the preliminary budget to members of the school board and administrative staff March 28 during a budget and finance committee meeting at Gateway High School.

The proposed millage rate would mean the owner of a $100,000 home in Monroeville and Pitcairn would pay an additional $54 in property taxes annually.

Schott blamed the shortfall on increased expectations to pay debt services, which reflects a $1.2 million increase from last year. He also said continued decreases in assessed real estate value is contributing to the burden.

The last time Gateway increased property taxes was in 2018, when the board increased millage by .5411 mills. Before that, the board last raised taxes in 2015.

School board member Rick McIntyre is against raising property taxes and is hopeful the state legislature will pass a bill that he said could bring reform to the cyber charter school pay structure.

The proposed bill would require a family to pay out-of-pocket tuition to attend a cyber charter school if their home district offers a “cyber-based program equal in scope and content.”

Under current law, school districts must pay a per-pupil tuition fee when a student from their district decides to attend a cyber or brick-and-mortar charter school.

Schott said there are 77 students who live in the district who are enrolled in nine non-Gateway cyber charter schools this school year, bringing the total burden of $1.3 million to the district.

Gateway currently offers a cyber academy through the Allegheny Intermediate Unit for K-12 students.

If all of those 77 students enrolled in Gateway’s cyber program, Schott estimates the district would save around $950,000 a year.

“That would be a huge reason to not raise taxes,” McIntyre said.

Schott said it’s too early to know if staff cuts and furloughs will be recommended within the budget. He said administration will process personnel budgetary items through April and present recommendations in May.

The school board has until June 30 to approve a final budget.