Preliminary budget, tax hike approved

The McKeesport Area school board has narrowly approved the district’s 201718 preliminary budget by a vote of 5-4.

The $65.7 million preliminary budget includes a tax increase of 0.63 mills, raising the property tax rate to 17.37 mills. If the budget gets final approval, the owner of a property valued at $50,000 would pay $31.50 more in school taxes in 2017-18.

After two votes May 24, board members Joseph Lopretto, Ivan Hampton, Mary Jane Keller, Patricia Maksin and Scott Smith voted to approve the preliminary spending plan. Christopher Halaszynski, Steven Kondrosky, James Brown and MindySturgess dissented.

The first motion to pass the preliminary budget failed 8-1, with Ms. Maksin casting the lonevote in favor.

Before the first vote, business manager David Seropian said the most significant increases in expenditures were debt service payments, charter schools and retirement funding.

The district’s debt service increased by $2 million, retirement contributions were up $500,000, and the cost for charter schools rose by $677,000.

Mr. Seropian said the district would have to use $4 million to balance the 201718 budget, leaving a fund balance of about $400,000.

Before the second vote was taken to approve the preliminary budget, Mr. Smith said he was “fearful for the future of the district.”

“This is just a preliminary budget that keeps the process moving,” Mr. Seropian said, noting that the school code requires the board to pass a final budget by June 30 and before that, a preliminary budget must be passed and on display for 30 days. If a final budget is not adopted in June, the district would not be able to send out tax bills and would not be able to pay its bills, he said.

Although he voted in favor of the preliminary budget, Mr. Smith said, “This same situation is going to occur when the final budget comes.” He said he would vote no on a final budget in June.

Mr. Seropian said a finance committee meeting will be held before the board votes on a final budget June 28.

Mark Holtzman was named director of the McKeesport Area Technology Center. Mr. Holtzman was hired as district superintendent in March and will also take over at the technology center, which is directed by current superintendent Rula Skezas, who is retiring at the end of June.