WJHSD Continues to Balance Excellence and Rising Costs With 2024-25 Budget 

JEFFERSON HILLS, Pa.; July 1, 2024 -- New and old challenges exist every year when school districts work through the budgeting process and the proposed 2024-25 budget has been no different for the West Jefferson Hills School District.

Recent data shows that WJHSD is Allegheny County's fastest-growing school district, with an enrollment that increased to 3,426 in 2023-24, up 134 students from the previous year. A demographic study completed in Spring 2023 projected the district will add 400–500 new students over the next 10 years.

The continued strong growth in the district is exciting, but also brings challenges that must be addressed in the 2024-25 budget and beyond, including more staffing and the need for additional classroom space. The district is in the midst of a feasibility study to determine the best options for addressing the increasing enrollment, most of which is expected to occur in grades 3-8.

WJHSD Ranks Among Allegheny County's Best Districts in Spending and Achievement

The district has been steadfast in its resolve to provide an outstanding educational experience for WJHSD students while also keeping the costs it can control in check to the best of its ability. According to the 2023 Pittsburgh Business Times, WJHSD ranked No. 41 out of 43 districts in Allegheny Intermediate Unit 3 in spending per student ($17,617) and No. 41 of 43 in instructional spending per students, but WJHSD was ranked nearly 20 points higher overall (No. 22) among more than 100 districts in Southwestern Pennsylvania. In the 2024 PBT rankings released in late May, WJHSD moved up to No. 18 overall.

Final 2024-25 Budget Approved by Board

With the growing student enrollment a foremost consideration, the WJHSD Board of School Directors approved the final 2024-25 budget of $68,040,881 at its June meeting, which included a 2% increase in millage rates for the upcoming year. The 2% property tax increase was well below the 7% increase that the Commonwealth had approved for the district for 2024-25.

Revenue is projected to grow by 5.67% in 2024-25, but expenses are slated to rise by 8.3%. The primary areas for the increase in expenses, compared to 2023-24 are:

-Purchased Professional Services (19.9%)

-Debt Service (12.9%)

-Benefits/Health Insurance (10.9%)

-Salaries (5.7%)

-Other purchased services (5.0%)

"I would like to thank the School Board, the members of the Finance Committee and Finance Director Tracy Harris for their time and hard work in preparing and approving the 2024-25 budget," stated WJHSD Superintendent Dr. Janet Sardon. "We face the same challenges all school districts have with rising costs for health insurance, benefits, outside district placements and the overall cost to provide an excellent education for our students in general. But, our Board has approved a budget that is fair for our community members, doesn't reduce the scope of any of our programs and adds teachers/staff that are much-needed with our increasing student population as the fast-growing district in Allegheny County."

Homeowner Impact With 2% Increase

The district's millage rate will increase by .464 mills to a total of 23.692 mills for the 2024-25 school year, as approved by the Board. The median assessed value of homestead properties in the district is $145,800, so for anyone living in a home at this valuation, the 2% increase will result in a $67.65 tax increase for the upcoming year ($46.40 for every $100,000 in home assessment).

For district residents living in a home assessed at $200,000 the tax increase will be $92.80 for the year and for residents who own a home assessed at $300,000 the increase will be $139.20 for 2024-25 or $11.58 per month. (see chart).

School Funding from Commonwealth Not Keeping Pace

The amount of school funding from the Commonwealth of Pennsylvania has not kept pace with the increase in expenses districts are experiencing and can be delayed, as was the case this year with the final 2023-24 Pa. budget being passed in December 2023. School districts are required to pass their budget by June 30 for the next school year.

With state funding not keeping pace, districts must rely more on local taxes to make up the difference. A total of 30.8% of WJHSD's 2024-25 budget is projected to come from the state, while 68.2% will come from district homeowners.

There may be more assistance ahead, though, as Gov. Josh Shapiro's 2024-25 budget calls for $1.1 billion in new education funding as part of a seven-year plan to address a $5.4 billion fair funding shortfall outlined by the Basic Education Funding Commission earlier this year. The Commonwealth's 2024-25 budget had not been passed as of June 25.

Preparation for Debt Service Increase Began in 2013-14

The district began preparing for the debt service increases associated with the building of the new Thomas Jefferson High School (which opened in August 2019), when the 2013-14 budget was approved. That budget included a seven-year plan to begin raising taxes to be added to the fund balance specifically for the larger increases in the debt service, which began this year and will be $1,238,000 in 2024-25.

During the seven-year period, a total of $3,745,885 was raised from the increased taxes and added to the fund balance to specifically pay for the debt service increases. Debt service is the third-largest expenditure ($7,588,121) and second-largest increase in the 2024-25 budget ($869,239) and totals 11.2% of the budget. The upcoming year will be the second of four years with bigger increases in the debt service and then the increases will level off.

Insurance and Benefits Increase by Double Digits

The district saw health insurance/benefits increase by 28.1% in this year's budget, followed by a

10.9% projected increase in 2024-25, the third-largest increase by percentage but the largest overall increase to the budget ($1,880,779).

Outside District Placements and Associated Costs on the Rise

One growing district expense that many residents may not be aware of are Outside District Placements. Students from other districts who already have an IEP (Individualized Education Program) are moving into WJHSD but continue to attend their previous school. The district works with the parents/guardian to provide appropriate education and services, and, as required by state and federal law, pays for transportation and the costs of services (speech, occupational therapy, physical therapy etc.) for those students.

In the district's 2024-25 budget, costs associated with Outside District Placements fall under two budget categories - Purchased Professional Services and Other Purchased Services - that rank among the top five increases in the budget at 19.9 and 5.0%, respectively.

The number of Outside District Placement students is projected to be 23 in 2024-25, which doesn't include any new students that move into the district over the coming months. The district began the 2022-23 school year with 15 outside placements but ended with 19 and started this year with 17 outside placements but ended the year with 25. The district's Special Education budget has grown from $4,861,859 in 2020-21 to a projected $6,942,869 for the upcoming year, a 30% increase. The Commonwealth's funding isn't keeping pace with the increasing number of special education students and related costs.

The district has consistently demonstrated fiscal responsibility in a meaningful way for its residents and will continue to do so, while providing a superior educational experience for WJHSD's growing and more diverse student population.

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