North Allegheny School District Faces $5.7 Million Deficit in Preliminary Budget

The deficit is down from a projected $8 million earlier this year.

In addition with deciding whether or not to close Peebles Elementary school, the North Allegheny School board will have to grapple with a projected $5.76 million deficit for the 2013-2014 school year.

At the Dec. 19 board meeting, Michael Hopkins, Director of Finance, told the board outlined a half dozen reasons why the deficit had shrunk from a projected $8 million earlier in the year: 

  • A 3% decrease in the original projection of salaries.
  • A decrease in the projected corresponding retirement and social security.
  • A decrease based on a lower increase in medical insurance rates than anticipated.
  • The maturation of two bonds, offset by increases due to amortizations.
  • The Fund Balance allocation to cover the Early Retirement Incentive Program.
  • Increased revenues from earned income tax collections because employers are now required to take that tax out of paychecks. 

Hopkins emphasized that there is a significant amount of information not yet available, including projected revenues from reassements, the Pittsburgh Post Gazette reported.

"It's kind of like doing stuff in the dark here," board President Maureen Grosheider said.

State law prohibits school districts from taking any additional tax revenue from reassessments. At the same time, districts are now allowed to make up money lost by successful assessment appeals.

"If the assessments go up by 29 percent and we reduce our millage by 29 percent and appeals bring it down to 25 percent, we cannot make that up," board member Dan Hubert told the PG. "It's a double whammy."

Follow us on Twitter | Like us on Facebook

Check out some of today's other top stories here.

Art Wegweiser January 02, 2013 at 08:58 PM
This is sad, but in their infinite wisdom, the people of PA elected something named Corbett who is more interested in giving away our public property to his buddies and blocking voters who might not want to keep him in office. Allison Park/McCandless


More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something