Tax increase could exceed Act 1 ceiling

Taxes in McKeesport Area School District could increase beyond its 3.6 percent index for the 2018-19 school year.

The school board voted 8-1 on Jan. 24 to display its 2018-19 proposed preliminary budget and authorize the administration to apply for exceptions from the state Department of Education for special education and the Public School Employees’ Retirement System. Board member Mindy Sturgess voted no.

The district’s 3.6 percent Act 1 Index allows the district to raise taxes by 0.62 mills. The current district tax rate is 17.37 mills, or about $1,737 on $100,000 of assessed property value.

“We don’t want to raise taxes, but if we want to keep the district moving forward, we need to do something,” said school board president Joe Lopretto. “My taxes are going to go up just like everyone else’s.”

Superintendent Mark Holtzman said once the district applies for the exceptions, the Department of Education will tell the district how much more taxes can be raised. The board will hold a special budget meeting at 6 p.m. Feb. 13.

In other business, the board approved two retirements under the district’s early retirement incentive program. Edward Fagan, director of buildings and grounds, will retire effective June 8. Business manager/board secretary David Seropian will retire effective June 30.

The board also approved the sale of the closed White Oak Elementary School to Wellness for Veterans for $400,000. The approval is contingent on a sales agreement and is subject to the approval of Allegheny County CommonPleas Court.

The former school building on California Avenue closed in 2012.

Wellness for Veterans provides physical and mental health services and job placement assistance to veterans. If the sale is approved, the property will become taxable.