Greater Latrobe to consider 3.11-mill cap on potential 2021-22 tax hike

Greater Latrobe School Board on Tuesday will consider capping any potential 2021-22 property tax increase at 3.11 mills.

If the district agrees to stay within that maximum number, it can forgo approving an early preliminary budget for the coming fiscal year, in accordance with Pennsylvania’s Act 1 of 2006, also known as the Taxpayer Relief Act.

Under that scenario, Greater Latrobe could raise next year’s tax, at most, from 84 mills to 87.11 mills, with each mill generating about $345,000 in revenue.

“We want to minimize any potential tax increase as much as possible’” district business administrator Dan Watson said. “Hopefully, we’ll gain more information from the state and federal government on what levels of funding we’ll be eligible to receive. We’ll also continue meeting internally about how we can control our expenditures, to get as close to a balanced budget as possible.”

Since the 2011-12 school year, the district has kept tax increases under the annually changing cap, which is determined by a state-mandated index. The current tax rate resulted from a 1.75-mill increase, compared to the 2020-21 cap of 2.71 mills.

Watson noted the district has been challenged this school year by a drop in investment income and earned income tax revenue, part of the economic fallout of the ongoing covid-19 pandemic.

“We reduced our earned income tax budget by 11.5%, and it is coming true,” he said. “We’re not seeing as much revenue come in in that particular line item as we had hoped.

“But we’re in no different situation than any other school district. We’ll continue to work through it.”

In December, the district took advantage of low interest rates by refinancing a 2016 series of bonds. Watson said the resulting savings of more than $300,000 will help to offset some of Greater Latrobe’s pandemic-related financial losses. The district also could benefit from its proposed $1.8 million share of the latest federal stimulus package.

Following the usual budget preparation schedule, Greater Latrobe would approve a tentative version of the 2021-22 spending plan by the end of May and a final version by the end of June.