Tax hike likely as Farrell school board tries to close budget gap

By Tom Davidson
Herald Staff Writer

June 12, 2008 12:41 am

— Property owners in the Farrell Area School District will likely have to pay more property taxes next year. How much depends on how much officials can close a $730,000 gap between projected expenses and revenues.
School board members have been holding budget hearings since May and are working to adopt a final budget by the end of the month.
In its present form, the spending plan totals $15,844,070 — $26,440 less than the 2007-2008 budget.
The district, which serves students in Farrell and Wheatland, collects a 54.75-mill property tax levy. One mill raises about $42,000 for the district, business manager Michael Stabile said.
Under Act 1, the state’s latest attempt at property tax reform, Farrell can raise taxes by 6.8 percent — about 3.7 mills — without a voter referendum.
If taxes were increased to that limit it would raise $155,400 — leaving the district almost $600,000 in the red without cuts.
Stabile said he is working with school board members to make up the difference and hopes to have a finished budget in place by the end of the month.

Farrell Area School District budget at a glance

Here is a breakdown of Farrell Area School District’s proposed 2008-2009 budget of $15,844,070, with current-year figures in parentheses:
SPENDING
• Instruction — $9,046,525 ($8,980,665)
Salaries — $6,106,883 ($5,061,489)
Benefits — $1,546,470 ($1,892,283)
• Support Services — $5,154,501 ($4,365,218)
• Non-instructional — $743,411 ($704,320)
• Capital expenses — $0 ($0)
• Debt and reserve — $899,173 ($1,037,307)

REVENUE
• Local taxes, including 54-75-mill real estate tax levy — $3,953,642 ($3,925,361)
• State funds — $9,739,262 ($8,542,620)
• Federal funds — $1,420,827 ($1,334,488)
• Fund balance — To be determined ($2,857,824)