2024-2025 Budget

The Fox Chapel Area School Board adopted the 2024-2025 final budget at its regular business meeting on June 10, 2024.

Total Revenues      $118,859,765
Total Expenditures  $119,178,185
Total Net Change       -$318,420

The budget will be balanced via a tax increase and the utilization of available fund balance.

The final millage rate for 2024-2025 is 21.5128 mills, which represents a 3.75% millage increase from 20.7352 mills. The tax increase represents lost real estate revenues in relation to changes in assessment values, adjustment for inflation, and the funding of capital improvements.

The 3.75% millage increase falls below the 5.3% Act 1 index allowed by the state. Each mill generates approximately $3.7 million for the school district. Properties that have approved homestead/farmstead exemptions will see an increase below 3.75% due to an increase in property tax relief funds from the state. 

The 2024-2025 final budget reflects the following:

• Increased expenses for facility improvements/upgrades

  • Water/sewer line repairs

  • HVAC improvements

  • Building safety upgrades

  • Funds transfer into the Capital Reserves Fund to be used toward the school board’s multiphase capital projects plan
     

• Insurance premium increases

  • 9% for medical

  • 5% for dental

  • 3% for vision
     

• Public School Employees’ Retirement System (PSERS) employer contribution rate of 33.9% for 2024-2025
   

• This accounts for 15% of the overall budget. The state reimburses the district 50% of the costs.

• Final utilization of federal ESSER funds, required to be spent by September 30, 2024

Gaming Funds Distribution

On May 1, 2024, the Pennsylvania Department of Education provided the Fox Chapel Area School District with the amount of the district’s share of gaming funds available for distribution. The final budget includes a distribution of $2,270,532. The method of distributing these funds, as prescribed by Act 1, the Taxpayer Relief Act, will be via the implementation of the homestead exclusion. Under this provision, any property in the school district that was approved by Allegheny County as a homestead will have the lesser of its taxable value, or an estimated $13,524.44 of its taxable value, excluded for the purpose of calculating current school district real estate taxes for the 2024 tax year. Based on the final budget, the owners of the 7,826* properties in the district that qualified for the homestead exclusion will receive the equivalent of an approximate $290 reduction in their property taxes. This is about $52 more than last year.

Property owners who currently do not have an approved homestead exclusion will have the opportunity to apply again when the district sends out letters to those homeowners in December 2024.

*Allegheny County has certified that there are 7,826 approved homestead properties in the district. If that number is adjusted by the county to include fewer or more properties, it could affect the amount of the final reduction.

Future Challenges

• Value reductions from Allegheny County assessment appeals

  • 2023-2024 assessment value reductions resulting in a revenue loss of approximately $800,000 (equates to a 1.11% tax increase)

  • 2023-2024 expenditures increased by more than $750,000 relating to prior year refunds paid as a result of the assessment value reductions
     

• PSERS contributions continue to be a challenge for school districts in Pennsylvania

  • The employer contribution rate is set by PSERS trustees, not by the district

  • The district anticipates paying more than $47 million in PSERS contributions during the next five years
     

• Projected multiphase capital projects plan

  • Projects address repair, replacement, and upgrades of equipment and infrastructure of aging district facilities

    • The current phase includes an overhaul of the Hartwood Elementary HVAC system and interior lighting
       

  • The current version of the plan includes an outstanding projected total cost of more than $32 million spread over eight years

    • The district is looking into additional alternative funding opportunities, including grants, as well as possibly increasing the district’s debt service profile

    • The district plans to utilize reserve funds for a portion of this work

         

Additional information about the 2024-2025 budget can be found at www.fcasd.edu/budget.

Taxpayer Estimated Real Estate Tax Liability

	Without Homestead Exclusion	With Homestead Exclusion	Without Homestead Exclusion	With Homestead Exclusion
2023 Assessed Value	$50,000	$50,000	$100,000	$100,000
2023 Homestead Exemption		-$11,703.33		-$11,703.33
2023 Net Assessed Value	$50,000.00	$38,296.67	$100,000.00	$88,296.67
2023 Millage Rate	20.7352	20.7352	20.7352	20.7352
2023 Tax Liability	$1,036.76	$794.09	$2,073.52	$1,830.85
2024 Assessed Value	$50,000.00	$50,000.00	$100,000.00	$100,000.00
2024 Homestead Exemption		-$13,524.44		-$13,524.44
2024 Net Assessed Value	$50,000.00	$36,475.56	$100,000.00	$86,475.56
2024 Millage Rate	21.5128	21.5128	21.5128	21.5128
2024 Tax Liability	$1,075.64	$784.69	$2,151.28	$1,860.33
Annual Increase/Decrease	$38.88	-$9.40	$77.76	$29.48
% Increase/Decrease	3.75%	-1.2%	3.75%	1.61%
Monthly Increase	$3.24	-$0.78	$6.48	$2.46
• These amounts can be reduced by 2% if paid in full during the discount period.
• Senior citizens may qualify for a property tax rebate program available through the state.

*The homestead exclusion amount is increased from last year due to an increase in allocation of state funds from the previous year. More information about the homestead exclusion can be found on the state’s Department of Community & Economic Development website.