As the 2022-2023 Parkland School District budget preparation process moves along, the gap widens between anticipated revenues and expenditures.

Director of Business Administration Leslie Frisbie reported, at the March 15 meeting, estimated expenditures increased $1.7 million since January for a $216,272,970 budget.

Revenues also increased but at a lower rate with $1 million additional funds likely to raise revenue to $209,145,803.

The shortfall stands at about $7 million.

Frisbie explained how the budget deficit can be made up.

“If taxes are not raised, it’s $7 million to take from the fund balance. If the Act 1 allowable millage increase of 3.4 percent is used, we need only $2 million from the fund balance,” Frisbie said.

The tax rate for 2021-2022 is 15.71 mills.

The maximum increase according to Pennsylvania rules would take it to 16.24 mills.

Frisbie noted the Act 1 increase would bring in $4.5 million, a $117.50 tax increase for the average property owner.

The business manager listed some expenditure increases since her January calculations.

Salaries are expected to go up $576,000 and associated benefits will rise $301,000.

Frisbie pointed out a $772,000 increase in the supply category.

She observed due to market conditions and bid pricing, the costs of heating oil, diesel fuel, gasoline and natural gas are expected to increase.

The cost of school supplies, in general, is going up, Frisbie said.

Another area of increase is new curriculum materials for the district’s review and replacement cycle.

Looking toward revenue increases, Frisbie said the district can accumulate some attritional savings through retirements of long-term employees who are replaced by new people lower on the salary scale.

However, Frisbie noted the differential varies in that situation as the new teachers could need more family health insurance coverage.

“When the long-term employee retires, the person lower on the scale will have a lower salary, but benefits might be higher,” Frisbie observed.

Turning to local revenue sources, Frisbie anticipates an increase of $854,000 since her January report.

The amount comes from increased assessed values of property, along with increased real estate transfer taxes.

As the April 29 budget seminar approaches, Frisbie said the district may possibly receive more from the state and higher assessed values.

She offered a closing comment.

“We are always looking for savings, but there is probably not a substantial change coming before the seminar.”