Kiski Area SD reviews $70.4 million preliminary budget, considers 2–3.5% tax increase to close $579,000 gap

Administrators for the Kiski Area School District told the board that the district’s preliminary 2025–26 budget shows $70,400,000 in expenses against $69,800,000 in expected revenue, leaving an approximate $579,000 shortfall that the administration recommends closing with a 2%–3.5% tax increase.

"Right now, the budget as the budget stands today, we're looking at about a 70.4 $70,400,000, expense budget and a $69,800,000 revenue budget," said Rick Liberta, who summarized highlights from the district’s May 7 budget hearing. Liberta said salaries and benefits account for about $47,000,000, roughly 67% of total expenditures.

The administration identified drivers of the increase: a pension (PSERS/"PEASERS" in the presentation) cost increase of about $515,000; a health-care increase of roughly 9% that added near $1,000,000 to expenditures; Chromebook purchases for kindergarten and fourth grade (about 500 devices); addition of a school resource officer at one building; and increased curricular and band-instrument costs. To close the gap the district proposed a 2%–3.5% tax increase that Liberta said would generate roughly $700,000 and leave about $200,000 of wiggle room.

Board members raised questions about the district’s fund balance and contingency. Liberta noted the district aims to keep an unassigned fund balance of about 8% (roughly $5.5 million) as a best practice; the district currently operates at about $6 million, and a $579,000 deficit would put that balance under the recommended level. "If everything stands the way it is today and we end up, you know, having an unbalanced budget of that 579,000, that puts us under that 8% threshold," he said.

Board members also pressed on operational trade-offs: the administration said it had already trimmed about $800,000 from maintenance and day-to-day building-fix budgets to help close the gap, a reduction members described as significant for aging facilities. One board member asked where further internal savings might be found; Liberta said most fixed costs — salaries/benefits, transportation, debt service and utilities — compose about 81% of the budget and leave only about 19% to adjust.

Residents asked how a tax increase would affect households. During public comment, Roger Crider asked for specifics; the administration displayed millage scenarios showing the district spans Westmoreland and Armstrong counties. Liberta said a roughly 3.35% example increase would move Westmoreland County’s millage from about 106.68 to roughly 110 and Armstrong County’s from about 41.55 up to about 43.78, with sample household impacts ranging from roughly $33 to about $95 per year depending on assessed value and applicable homestead/farmstead tax relief. He also noted that increased state gaming revenue raised the homestead/farmstead relief from $226 to $260 for the coming year, which reduces the net tax change for eligible homeowners.

Officials flagged external risks that could change the budget picture: Liberta said potential changes in federal education funding (Title programs) could reduce district federal revenues by roughly $1.9 million if those funds were reduced or shifted; he described that as uncertain and outside local control.

Next steps: the board must approve a preliminary budget for public display for 30 days and adopt a final budget by June 30 under state code, the board solicitor said. The board will continue budget discussions and may adjust levy options before the final vote.