Burrell School District budget raises taxes 5.8%

Burrell School District officials say the district is suffering from stagnant property value growth, and taxpayers will foot the bill for it.

The district’s final 2024-25 budget of $36.6 million includes a 5.8% property tax hike. The 6.5-mill increase will bring the district’s millage rate to 117.5, the highest of districts in Westmoreland County.

A 4.5-mill increase was needed to offset district operating costs. The additional 2 mills allows the district to start paying for bonds to cover future capital projects, which could include the closure of Stewart Elementary and expansion of Bon Air Elementary and updated HVAC systems in multiple district buildings.

A mill is worth $151,531 to the district.

Factors contributing to the tax increase include rising costs in special education services, cyber school tuition and employee medical insurance costs, said Jennifer Callahan, the district’s business administrator. The district also saw a $900,000 decrease in federal revenues.

From 2019 to this year, Burrell has seen a $3.85 million decrease in total assessed values, Callahan said. Revenues from assessed values, known as natural growth, actually saw the district losing more than $400,000 in property tax revenue.

“Most districts in Westmoreland County have seen substantial increases in assessed value during that same period, resulting in additional revenue to the district without increasing taxes,” she said.

Burrell’s budget has increased $3.69 million, or 11.4%, since 2019. Most districts in the county were in line with Burrell or increased their budgets by more, Callahan said.

But the district has seen little natural growth over the years. Next school year, Burrell will only see a $5,960 increase in assessed values, which would be a $662 increase in revenues from natural growth without raising taxes, Callahan said.

“The majority of other districts in the county are seeing an increase in assessed value that results in additional tax revenue much greater than Burrell,” she said.

Callahan said the district also is suffering from declining demographic ratios used by the state to calculate state subsidy funding. The ratios represent things such as the average number of students attending classes daily, personal income levels in the district and the district’s property market value.

“These ratios represent relative wealth, market value and income in relation to the state average and are used by the state in some of the calculations to determine state subsidy funding,” Callahan said. “Burrell School District’s ratios are lower than most of the county districts, which means the district receives lower state funding amounts than others.”

The school board split on approving the budget, with directors Tom Deiseroth, LeeAnn Guido, Rick Kaczor, Tricia Shank and Tim Vinkovich voting to approve. Gretchen Beveridge, Pam Key, Jean Schager and Nikki Watson voted against the budget.

A vote authorizing the tax levies for the 2024-25 year was approved in the same vote.

“I don’t want to have this tax increase … but this needs to take place,” Shank said.

Schager was concerned the millage increase would be too much for some people. Watson suggested meeting in the middle on the tax hike, maybe only raising the rate by 5.5 mills.

Those in favor of the budget said they’d rather bite the bullet now to start paying off bond issues than saving that mill increase for next year.

“Deducting 1 mill, right now, I don’t know that that appeases anybody, actually. … It’s going to set us up for potential failure next year,” Guido said.