District Budget


KO Board of School Directors Approves Proposed Final Budget, Final Approval Slated for June 18


Keystone Oaks School District Board of School Directors approved the District’s 2015-2016 Proposed Final Budget during a Special Voting Meeting on Tuesday, May 19, 2015. The proposed final budget, with expenditures totaling $38,882,585, allows Keystone Oaks to enhance its educational programs for District students and provide greater access to state-of-the-art technology in the classroom. The budget is balanced without using any of the District’s fund balance and also holds the line on taxes.

Keystone Oaks’ proposed spending plan for the next school year keeps the millage rate at 18.63. This is the second consecutive year that the District has not had to increase taxes. A median home in the Keystone Oaks School District valued at $113,000 will pay a property tax bill of approximately $175 per month, before any exemptions. For 2014-2015, Keystone Oaks has the 15th lowest mileage rate of the 42 Allegheny County suburban school districts.

The budget is available for public inspection and comment at central administration and online until the final budget approval, scheduled for June 18, 2015. The last day for budget adoption for all school districts is June 30, 2015.

Among the items included in the budget are funds for the implementation of full-day kindergarten and a number of technology enhancements, including:

  • $365,000 for the purchase of new student and teacher devices including 210 Chromebooks, 310 student desktop computers to update the High School and Middle School computer labs, and 30 CAD workstations to update CAD labs in the STEAM room and industrial arts wing.
  • $20,000 for the purchase of Mimio interactive projectors and AV rover mobile presentation equipment

Due to the Early Retirement Incentive and staffing adjustments for the 2015-2016 academic year, Keystone Oaks saw a minimal increase in employee wages. The largest increase in the budget is in the District’s contributions to the Public School Employee’s Retirement System, which increases 4.4%, totaling $723,029 in contributions.

A total of 5,569 Castle Shannon, Dormont & Green Tree approved Homestead property owners, who have filed Act 1 exception forms, will see a lower tax bill due to state gambling revenues. The $152.35 real estate tax reduction results in a larger decrease for qualified homeowners.

 

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UNDERSTANDING THE SCHOOL DISTRICT BUDGETING PROCESS

Pennsylvania school boards – except in the cities of Philadelphia, Pittsburgh and Scranton – operate on a fiscal-year schedule that begins July 1.  They have to pass their final budgets and tax resolutions by June 30 for the upcoming school year.

The Taxpayer Relief Act enacted in 2006, commonly called “Act 1,” is intended to reduce taxes for homeowners and farmers and allow voters to control school tax increases. Act 1 introduced major changes and new deadlines into the school district budget process.

For a detailed explanation of Act 1, click here. For the text of Act 1, click here.

Act 1 allows school districts to accept state gaming revenue to offset property tax reductions which result from homestead and farmstead exclusions. Homestead and farmstead exclusions lower assessments, which result in lower property taxes, for qualifying homeowners and farmers.

School districts may also reduce property taxes by levying a personal income tax to replace their earned income tax, or by increasing their earned income tax.

Earned income tax is based on wages and salaries. Personal income tax considers additional income sources, such as investment and pension income.

Voters decide, by “back-end referendum” in the spring primary election, whether to allow their school district to raise taxes beyond the district’s “adjusted base index,” which is an inflation rate calculated for their district by the Pennsylvania Department of Education.

A school board may refuse state gaming revenues. If it does, the voters have to agree by referendum in the next primary election. If the voters disagree with the board, the question comes up for a vote again in the following fiscal year.

State gaming revenues are not guaranteed. Whatever the state takes in from gambling each year goes first to fund property tax and rent rebates for seniors and disabled Pennsylvanians, and then to school districts to offset property tax reductions.

School districts find out in May if they will get state gaming funds, and how much.  If funds are available, districts get 50 percent in August and 50 percent in October.


BUDGET CYCLE
The basic school budget cycle under Act 1 is:

  • On Sept. 1, the Pennsylvania Department of Education publishes the “base index,” a figure based on statewide wages and inflation, for the following fiscal year.

  • By Sept. 30, PDE notifies school districts of their “adjusted base index,” which considers a district’s aid ratio in calculating how much it may raise its real estate tax rate without court, PDE, or voter approval.

    If the district wants to raise taxes by more than its adjusted base index, it can ask for one of 10 exceptions allowed by Act 1 – three require approval from a Court of Common Pleas and seven require PDE approval. If a district wants to raise taxes more than its index for reasons not covered by one of the 10 exceptions, it can ask voters to approve the increase by referendum in the upcoming primary election.

  • Toward the end of January – 110 days before the next primary election — a school district seeking an exception must make its proposed preliminary budget available for public inspection. Or, districts may adopt a resolution saying they are not going to raise taxes by more than the index.

  • The preliminary budget has to be passed by mid-February – 90 days before the primary election – unless there was a resolution not to raise taxes beyond the index.

  • Early March – no later than 75 days before the primary election – is the district’s deadline to file a petition for an exception with the Court of Common Pleas, or to ask PDE for an exception.

  • Late March – or 55 days before the primary election – is the deadline for the court or  PDE to rule on the exception request.  If the request is denied, the district may appeal to voters by referendum in the upcoming primary election.

  • Late March — 50 days before the primary – is the deadline for the district to submit a referendum question for the primary election ballot.

  • Primary elections in Pennsylvania are held on the third Tuesday of May in all years except Presidential-election years, when they are held on the fourth Tuesday of April. If there is a tax-increase referendum on the ballot and voters reject it, a district cannot raise taxes more than its index.

  • By the end of May, the school board adopts a proposed final budget.

  • Around June 10 – or no less than 20 days before the board plans to vote on the final budget — the school district has to make its proposed final budget available for public inspection.

  • Around June 20 – or no less than 10 days before the vote — the school district has to advertise its intention to adopt the final budget.

  • The final deadline is June 30. The school board votes to adopt the budget, then votes to adopt an appropriation plan to pay for the budget.

  • The adopted budget has to be submitted to PDE within 15 days.


USEFUL INFORMATION

Under Act 1, voters also have to approve a school district’s referendum to levy any new type of tax.

The Public School Code allows school boards to increase spending after a budget is passed “to meet emergencies, such as epidemics, floods, fires, or other catastrophes, or to provide for the payment for rental under leases or contracts to lease from the State Public School Building Authority or any municipal authority entered into subsequent to the date of the adoption of the budget.” In such cases, additional funds can come from other budget categories, from “unappropriated revenue, if any,” or, by a 2/3 vote of the board, from a temporary loan.

The board is allowed to move unspent revenue from one budget item to another, but only during the last nine months of the fiscal year (October through June).