The Board of School Directors of the Allegheny Valley School District approved the 2020-2021 Final General Fund Operating Budget for the 2020-2021 school year in the amount of $26,602,978. The Budget represents an increase of 15.65% or $3,600,313 more than the 2019-2020 Budget of $23,002,665. Local revenue for this Proposed Final Budget will be provided by a real estate tax of 20.8377 mills, one half of 1% earned income tax, one-half of 1% real estate transfer tax and one-half of $10 occupation privilege tax.
• The major revenue driver for the District is the Real Estate Tax Assessments, and local revenues account for 59.4% of total revenues.
• The other two major revenues - State (22.89%) and Federal (0.86%) subsidies - reflect balance of income for the District. There is a transfer of $3,500,000 from General Fund to the Capital Reserve Fund and balancing the revenue shortfall of $883,998 from the Fund Balance.
• The 2020-21 General Fund Expenditure Budget total is $26,627,092. This total is an increase in Expenditures of $124,427 or 0.5% from the prior year, excluding a transfer of $3,500,000 to the Capital Reserve Fund for future capital improvements in the District.
• The instructional budget represents approximately half of all costs to the District.
• Increases in the budget can be attributed to costs of: retirement, salaries, special education, tuition, transportation, and debt service.
Overall, the Budget reflects the volatility and uncertainties of District revenues with the impact of COVID-19 on the economy.