Penn‑Trafford board tentatively adopts preliminary budget with 3‑mill tax increase

The Penn‑Trafford School Board voted 5–4 at its meeting to tentatively adopt a preliminary $70,066,860 budget that includes a 3‑mill increase in real estate taxes, raising the district millage from 90.75 to 93.75 mills. The vote authorized advertisement of the preliminary budget; the board will consider a final budget at its June meeting.

The increase is intended to reduce the district’s recurring reliance on its fund balance. Brett, the district finance presenter, said revenue was about $68 million while expenditures were about $70 million, producing a current projected deficit of roughly $1.4 million. "You just can't keep sustaining that pattern of having the expenditures exceed the revenues, eating into the fund balance because eventually there won't be any fund balance left," Brett said.

Why this matters: Board members and district leaders said health care and salary costs are driving most of the budget gap, and prior years’ use of reserves has reduced flexibility. Superintendent Dr. Harris warned of program losses if the district does not raise local revenue, saying, "If you do not raise at least 4 mills, I think we were not only gonna lose a lot of our items this year, we are gonna have trouble going forward..." He said the administration had prioritized cuts and would not present a wish list but “what is needed.”

Board debate and votes: The board considered several proposed millage increases before approving 3 mills. An initial motion to adopt a preliminary budget with a 2.5‑mill increase failed (motion by Mr. Stovar, seconded by a board member; tally 4 yes, 5 no). A proposal to increase millage by 3.5 mills with spending earmarked for technology, security and capital also failed. A later motion to adopt a preliminary budget with a 3‑mill increase passed on a roll call vote: Mrs. Ising no; Dr. Klein no; Dr. Kostjoe no; Mr. Leonard yes; Mr. Matarazzo yes; Mr. Neamec yes; Mr. Petrucci yes; Mr. Stovar no; result 5 yes, 4 no. Mr. Winters moved the successful 3‑mill motion.

What the money would do and fiscal context: Finance staff said one mill brings in about $314,000; at the district’s stated average assessed value of $28,000, one mill equals about $28 a year to the average taxpayer. The administration said health care costs rose about 9% this year—roughly $600,000—and that salaries and benefits account for roughly 80% of the budget. The district reported paying roughly $2 million in tuition to cyber schools for students who do not attend Penn‑Trafford’s brick‑and‑mortar schools.

Fund balance and risk: Brett said the district’s fund balance should be about $4 million at year end and that the district has used reserves in recent years (including to buy the administration building and to pay for one‑time projects such as roofs). Board members noted the state’s recommended fund balance range is roughly 5%–8% and that Penn‑Trafford expects to be near 6% at year end. Finance staff warned that continuing to rely on reserves for recurring expenses would leave little for capital emergencies.

Next steps: The motion approved was to advertise the preliminary budget; the board will revisit the figures at its June meeting and can adjust the final millage then. Board members asked that those who opposed the increase be actively involved in forthcoming decisions about specific cuts or reallocations.

Details on possible cuts: Superintendent Dr. Harris and the administration said if additional revenue is not realized, next cuts could include tutors, two student learning assistants, and other support positions and programs. The administration said it already used attrition and earlier cuts to reduce costs in the current year and had prioritized what it would be forced to eliminate next.

The board also discussed ongoing contract negotiations with the SEIU and said potential contract outcomes could change the district’s final needs before the June vote.