The North Penn School Board last week unanimously recommended a proposed final 2023-24 fiscal year $312 million budget with a 4.1% tax increase, which will generate $8.3 million in revenue to close a $9.6 million deficit, costing the average borough taxpayer with a $150,000-assessed home about $173 more a year in taxes.
Revenues are proposed at $302 million, per the budget. The final budget is expected to be adopted June 22.
“3.9% to 4.1%, it’s a $9 difference for the average taxpayer in North Penn, but a $400,000 difference for our budget, and that’s a huge impact on where this district will be — not just this year, but in consequential years following that,” said board member Tim MacBain at the finance committee meeting earlier this month, per The Reporter.
According to district CFO Steve Skrocki a $1 million increase in investment income was one of the biggest changes in the budget. The budget projects $1.6 million more in real estate taxes and about $300,000 more in earned income tax, per the report.
Of the $312 million in expenses, most of that money – about 77% – is going to salaries and benefits for district staff, per the report.
“So, many times, individuals say ‘Well, it’s easy to cut, just cut textbooks, or cut transportation, or this or that.’ When you look at it in terms of percentage, if cuts are going to be made it’s going to be in programs, in people, in staffing, that’s the largest amount of our budget,” Skrocki said at this month’s finance committee meeting.
The district is sitting at a $48.5 million fund balance, according to the article. Outstanding debt is about $65 million, $58 million of which is principal, per the article. Skrocki suggested the district could use some of the fund balance to “help balance the budget deficit and maybe mitigate any tax increase.”
Watch the school board meeting here.
See also:
North Penn School District Appoints New Inglewood Elementary School Principal
North Penn School District Named Among Best Communities for Music Education
North Penn School District Holding Knight of the Arts on May 24
2 North Penn High School Students Selected for National Merit Scholarships
North Penn Preliminary Budget for 2023-23 Carries $12.2 Million Deficit
