Residents of Penn Hills School District will see a tax increase this school year under the district’s nearly $110 million budget.
The budget calls for a 1-mill tax increase, or about 3.1%, with a homeowner with a median assessed property paying $2,281.75 in property tax.
It was passed in an 8-0 vote on June 24. Board member Reginald Hickman was absent from the meeting.
Dan Matsook, the district’s chief recovery officer, spoke about the tax increase during a May school board voting meeting.
Without the tax increase, the district’s fund balance will be depleted by the 2030-31 school year, he said during the May presentation.
“It’s extremely important that everyone understands that sustainability is the goal here,” Matsook said.
With the district recently completing its second year after exiting financial recovery, Matsook said officials must remain on top of costs and keep the big picture in mind when it comes to considering tax rates.
“If we don’t continue to keep up with our funds and our revenue, the fund balance will be depleted,” Matsook said.
He said it could begin to be depleted in less than four years if the district doesn’t continue to be vigilant.
“It’s good to be farsighted and do things before you become very desperate,” Matsook said.
Almost 41% of the district’s revenue is expected to come from local taxes, a little less than $45 million. Penn Hills is projected to spend about 36%, or almost $40 million, of its budget on instruction and programs.
About the tax increase
This is what the tax increase means for a property owner in Penn Hills School District with a median assessed property value of $70,200:
Former tax rate: 31.5965 mills
Former tax bill: $2,218.07
New tax rate: 32.5965 mills
New tax bill: $2,281.75
Tax increase: $63.68