North Allegheny board hears proposed final $199.6 million budget, holds millage at 19.74

Mr. Hauser, presenting the proposed final 2024–25 budget to the North Allegheny School District board on April 17, said the district expects roughly $199.6 million in revenues against $198.5 million in expenses and recommended holding the real-estate millage at 19.74 for a third consecutive year. "Millage rate 19.74, no change from from last year," he said.

The presentation broke down the revenue mix: roughly 75% of funding is expected to come from local sources (about $124.7 million), roughly 23% from state sources (about $45 million) and approximately 2% from federal funds (about $3.1 million). Hauser told the board the projected positive impact to the fund balance is roughly $1.1 million, or about 0.5% of the budget, leaving an estimated ending fund balance of about $28.6 million (approximately 14.4% of the budget), which equates to roughly 1.8 months of operating cash.

Hauser described key assumptions built into the proposal, including a 0.2% assessed-value growth rate, an estimated 5.1% increase in earned-income tax receipts (he said the estimate reflects stronger current-year actuals), and modest interest-earnings growth. He said the district is planning a $2.0 million transfer to the Capital and Technology Fund to support infrastructure, buses and other capital needs.

Board members asked about risks. Hauser identified the common level ratio and elevated assessment refunds as the primary revenue-side risk, and he said continued elevated interest rates could provide upside in interest earnings. He cautioned that staffing and contractual increases are the main drivers of expense growth: "75% of our budget are actually 76 percent is made up of salaries and benefits," he said.

Several board members voiced support for the budget presentation and thanked staff for making materials available online. Mr. McClure and others noted the district has kept taxes stable while expanding services, and one member urged continued focus on the district's bond rating to reduce future borrowing costs.

Next steps: the board is scheduled to vote on the proposed final budget on April 24; the proposed budget will be displayed for the legally required period and, if adopted, the board expects to finalize tax rates and approve the final budget at its June 12 meeting, with new rates effective July 1.

Provenance: The budget presentation and discussion began in the board's opening remarks and continued through the finance report and Q&A; the presentation is reflected in the transcript from the initial budget notice through the end of the budget Q&A.