Gateway adopts budget, raises tax rate
Share this post:
Gateway School Board voted 5-4 to adopt the district’s 2023-24 budget during a meeting that was rescheduled for June 29, one day before the deadline mandated by the state Department of Education.
Board members Mary Beth Cirucci, Susan DeLaney, Valerie Warning and Scott Williams were opposed.
With the adoption comes a 5.1% real estate tax increase, from 21.749 mills, the 14th-lowest rate among 42 school districts in Allegheny County, to 22.8570 mills. The increase is the maximum for Gateway under its Act 1 index assigned by Department of Education, a measure calculated using the statewide average weekly wage and federal employment cost index for elementary and secondary schools.
Based on median assessed value of property, $110,100 in Monroeville and $34,300, the impact of the increase on taxpayers for this school year is an extra $120.90 and $38.37, respectively.
To balance revenues and expenditures in the $96 million budget, Gateway is using $3.47 million from its fund balance, which represents the difference between the district’s assets and liabilities. Cirucci cited the use as a reason for her vote in opposition.
“I just don’t think that we should be borrowing from our fund balance to cover regular expenses. It’s just not sustainable,” Cirucci said. “I’m OK using the money for specific projects like the building repairs, but this is different.”
According to the district, the fund balance is projected at $9.46 million as of next June 30, or 9.83% of 2023-24 expenditures.
Qualifying residents looking for property tax relief can apply for a homestead exclusion, which is estimated to be $235.28 per eligible household in Pitcairn and Monroeville for this fiscal year.
The millage increase is in line with other public schools in Allegheny County and is needed to cover soaring expenses. Special education spending is one category that has skyrocketed over the past few years.
“Our special education budget is increasing by $416,125. The state will provide $353,137 but that still leaves roughly $63,000 that we must account for,” said Mike Zourelias, board treasurer and district business manager. “I think covid had a lot to do with the major increase we are seeing in special education spending. A lot of those kids just didn’t get the social skills while they were at home.”
Another area impacting Gateway’s expenditures involves charter and online schools.
“A lot of people don’t realize that the public schools foot the bill for that,” said Zourelias.
Many public school officials are hoping that legislation will be passed to subdue the hit. Cyber school tuition rates are being discussed in Harrisburg, but no significant changes appear to be on the horizon.
A potential burden for Gateway is the reassessment of the Monroeville Mall property. If the district loses the assessment appeal, due to be settled this year, the district would owe the mall nearly $3 million in back taxes for the past five years.
“This is one thing that I’m proud of our school board for,” said Zourelias. “We didn’t just sit around and wait to see what happens. We planned for it. We started banking $500,000 per year five years ago. Some other school districts wouldn’t do that.”
Other expenditures in the budget include $764,803 toward new iPads and computers for students. An additional $750,000 is set aside for capital improvements, which will be spent maintaining and improving the buildings.
“Gateway does things right,” said Zourelias, who has spent over 20 years as a business manager in school districts. “This district really plans ahead, and overall, we really are doing well.”
Jason Mignanelli is a Tribune-Review contributing writer.