Taxes would increase a little more than 2% in New Kensington-Arnold’s proposed preliminary budget for the 2024-25 school year.

It’s about a fourth of the maximum tax increase, 8%, the district is allowed under its state-imposed, inflation-based limit.

The tax increase, 2.05%, was added to balance the proposed $45.1 million spending plan, but district Business Manager Jeff McVey said he did not make any specific recommendation for a tax increase.

“It is way too early for that, and the state has yet to outline its funding for fiscal year 2024-25,” he said.

The proposed tax increase would raise the district’s property tax rate by 2 mills, from 97.64 mills to 99.64 mills.

The district’s 8% limit would allow a maximum tax rate of 105.4512 mills. That would increase the bill by about $114.

The school board was set to approve the preliminary budget at a meeting this past Tuesday, but the meeting was canceled because of weather. The meeting has been rescheduled for 7 p.m. Tuesday, Jan. 16 in the boardroom at Valley High School.

The motion had included authorizing McVey to apply for referendum exceptions that, if approved by the state Education Department, would allow the district to increase taxes by more than its index limit.

To avoid confusion, McVey said he will have the motion amended to remove the referendum exception filing.

According to the budget, the district is expected to start the 2024-25 school year with about $5.3 million in unallocated reserves. Combined with about $45.1 million in revenue, it gives the district about $50.4 million available for spending.

As of June 30, the district is expected to have about $11.4 million in total cash and investments. That is projected to be reduced to about $10.7 million by June 30, 2025, according to the budget.

The district’s total long-term debt as of June 30 is expected to be about $80 million. That is projected to come down to about $76.7 million a year later, according to the budget.

The preliminary 2024-25 budget is posted on the district’s website, nkasd.com, under the school board heading, and is available for inspection at the district office.