Hempfield Area passes preliminary budget with no tax increase

Hempfield Area School District officials avoided a projected $1.2 million deficit in the 2021-22 budget, passing a preliminary budget that does not include a tax hike.

School board members on Monday unanimously approved a preliminary budget that includes $98.8 million in revenues and $99.5 million in expenditures. Money will be drawn from the district’s fund balance to cover the $769,100 deficit incurred from a curriculum adoption at the elementary level, leaving the account with a projected $13.8 million.

“A healthy fund balance certainly supports completion of the elementary English language arts new curriculum adoption, replacing the stadium turf and resurfacing the track without the need to increase taxes,” said district Business Manager Wayne Wismar.

This is the third consecutive budget district leaders are not raising property taxes, leaving the rate at 83.46 mills.

In addition to using money from the fund balance, the district also is reducing expenditures by replacing two retirees at a lower cost, saving $86,550, and through attrition, which will save about $923,000. An additional $994,000 received from federal aid packages throughout the covid-19 pandemic will be used to cover pandemic-related costs.

Of the projected $98.8 million in revenues, 2% comes from federal funds, 37% from state funds and 61% from local sources. Wismar noted, however, there are several uncertainties in terms of federal and state funding, the total of which will not be known until state officials pass their budgets.

If the state budget is passed as proposed, Hempfield Area stands to receive additional funds totaling almost $400,000 in basic education funding and more than $387,000 in special education funding. Wismar noted increases ranging from $100,000 for basic education funding and $50,000 for special education funding.

In addition, Wismar said, there is a possibility that federal funds could decrease due to funding associated with the federal aid packages.

Local revenues, however, are seemingly rebounding after being impacted by the pandemic. So far this year, earned income tax collections have 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.

On the expenditure side, about 76% of the total 2021-22 budget is made up of salaries, budgeted at $41.9 million; medical benefits, budgeted at $7.6 million; charter school tuition at $2.4 million and the debt service, which rings in at $9.7 million.

A final budget will be voted on during the June 21 board meeting.