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District finance staff warn of property-assessment losses; final budget adoption set for May 27
Summary
Superintendent and district finance staff told the board the district’s preliminary proposed budget was approved previously and that the final budget will be adopted on May 27; officials described assessment declines, refund payments and limited state funding increases that together reduce available revenue.
Gateway School District officials provided a budget update during the meeting, saying the board previously voted a preliminary proposed budget and will adopt the final budget on May 27.
Superintendent Dr. Chaney (first name not provided) told the board that Pennsylvania’s school funding ranks low nationally and that the district did not qualify for state adequacy-gap or tax-equity funding. “We had the preliminary proposed budget that we voted on last week and that was not final. Final budget will be adopted on May 27,” Dr. Chaney said. He and district finance staff said the district’s net state increase was small once charter tuition and other deductions were applied.
District finance staff (Mike) reported that assessment values in the district declined from $2,344,000,000 last year to about $2,000,314,000 this year, creating an estimated revenue loss of $674,000 absent other changes. Officials said 17 pending commercial assessment cases could add roughly $240,000 if resolved in the district’s favor, and combined effects could approach $900,000 in lost revenue. The district also reported paying $6.6 million in refunds in the 2023–24 school year against a $94 million budget (roughly 7% of the budget), with about $800,000 paid so far in refunds this year and $1 million budgeted for refunds in the current year.
Board members asked whether senior-citizen programs or county assessment reduction programs might reduce the local tax burden; district staff pointed listeners to county and state rebate/assessment programs and said related information is posted on the district website. Officials emphasized that charter tuition and the common level ratio calculation are major drivers of revenue volatility for districts with substantial commercial property.
The presentation was informational; the board did not make a final budget decision at this meeting. District staff reiterated the May 27 adoption date for the final budget and said they will continue to monitor pending assessment cases and other revenue developments.
