Despite recently moving forward with a high school renovation project that could cost upwards of $110 million, the Hempfield Area School Board this week unanimously approved a final budget that does not raise taxes for the fourth consecutive year.
Passage of the $102.8 million budget came months after board members moved forward with the renovation project, which could cost between $97.4 million and $109.9 million.
District leaders are working to limit any impact the project could have on taxpayers by rolling the costs into their established debt service, for which the district budgets $8.5 million annually. Final payments for existing debt will be made in 2026, positioning the district to begin the project without a tax increase.
“I’m very proud of what they’ve done,” school Director Scott Learn said of the business office positioning the district to move forward with the project while not raising taxes.
The final budget keeps taxes at 83.46 mills.
According to business manager Wayne Wismar, the budget contains a slight increase from the proposed budget, which was passed last month. Revenues and expenditures increased by more than $1.8 million after covid-related dollars were added to the budget.
Of revenue included in the budget, 37% comes from state subsidies. Wismar noted that amount of state dollars received is expected to be higher than in past years, although the governor’s proposed budget has not yet passed.
In addition, local revenues are expected to increase. Officials budgeted a $600,000 increase in earned income tax collections based on actual and projected data supplied by Berkheimer Tax Collector. Total assessed value is at $634.8 million, a $1.5 million increase.
Wismar cautioned that a tax increase may be necessary in the future to cover rising costs of contracts and benefits.
“Why do I say that? At some point, reducing staff to cover the increase in contractual costs is going to be more difficult if not impossible without impacting offerings and opportunities for the students,” Wismar said.
He also suggested that officials start building capital planning costs into the budget — which relate to replacements of Chromebooks, interactive panels and other technology — as well as infrastructure costs for parking lots and other projects.
“I just wanted to thank Wayne and his team for the work that they did to be able to balance (the budget) this year and present the taxpayers with no tax increase this year,” said director Jerry Radebaugh.
