Hempfield Area passes final budget with no tax hike

Hempfield Area School District residents won’t see a tax increase for the third consecutive year.

The district’s budget, passed unanimously by the school board Monday, includes $98.9 million in revenues and $99.7 million in projected expenditures, according to budget documents. The $769,100 deficit, incurred by the adoption of a new elementary English language arts curriculum, will be covered by the fund balance, district Business Manager Wayne Wismar said.

“We still have a healthy projected fund balance at the end of this,” Wismar said.

The final budget — which keeps the millage rate at 83.46 — varies slightly from the preliminary budget passed last month. In that budget, revenues totaled $98.8 million, and expenditures totaled $99.5 million. The $125,700 increase seen in the final budget comes from federal funds, Wismar said.

Expenditures were adjusted to reflect the increase in federal revenue.

Despite an increase in federal funds, state subsidies — which make up 35% of the district’s revenue — remain uncertain. Wismar said the state’s budget has not yet been passed. However, there is “optimism that state funding could increase,” he said.

Included in revenues for next year’s budget are growing local sources. By April, earned income tax collections increased by more than $74,900 compared to last year, and total taxable assessed value is projected to increase by about $275,000 in revenue. Interest rates, however, have declined, negatively impacting interest earnings.

To help balance the budget, district leaders over the past few months reduced costs by replacing two retirees at a lower cost, saving $86,550. School board members early this month also voted to eliminate about 11 positions through attrition, saving the district about $923,000. Officials at the time noted none of eliminations were furloughs.

The district also received more than $994,000 from federal aid packages throughout the covid-19 pandemic. Of that, more than $658,200 will cover the costs of six positions at the Hempfield Area Cyber Academy, $181,125 will be used for intervention kits and almost $154,780 will go toward technology costs.

“Overall, some pretty positive news on the revenue side,” Wismar said. “I think the expenditure projections are solid and whole and I think a well balanced budget for 2021-22.”