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SR keeps budget options open

District to seek taxing exception

SLIPPERY ROCK TWP — The Slippery Rock School Board on Monday passed an early preliminary budget for 2015-16 to see if it is able to increase property taxes above a state limit.

Last month, business manager Paul Cessar presented a $30.4 million budget that is 6 mills out of balance, representing a $790,000 deficit.

A mill generates $1 in tax for every $1,000 of a property’s assessed value. The current millage rate is 92.77 mills.

He noted that the state’s Act 1 index does not allow the district to increase its tax rate by more than 2.319 mills this year.

By passing a preliminary budget Monday, the district is allowed to seek exceptions to increase taxes above that limit.

School board President Polly Shaw said the vote will keep the district’s options open. She noted that, just because the district is seeking exceptions does not mean it will increase taxes.

For the past few years, the district has adopted a preliminary budget and has gone after exceptions.

The current budget started off with a $700,000 deficit, requiring 5.5 mills to close, and the Act 1 limit was 2.5 mills. The district passed a preliminary budget and went for exceptions. In June, the board passed a $29.3 million budget with a tax rate of 92.77 mills, an increase of 3.62 mills.

That was the district’s first tax increase in three years.

The previous year, the budget started off with an $850,000 deficit, requiring 6.5 mills to close, and the Act 1 limit was 2.3 mills. The district went after the exceptions.

However, the board chose not to use them and balanced the budget through other means. The board passed a $28.4 million budget with no tax increase that year.

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