Based on the preliminary budget, Pleasant Valley School District could see a tax increase of 4% for the 2021-22 school year.

“We’ll continue to chip away at it,” said Superintendent Lee Lesisko at the school board meeting on March 11.

The district’s new business manager Joseph Surridge reviewed the most recent workings of the budget for the school board. He said that although the preliminary budget includes a 4% tax increase, there are other factors such as a third round of stimulus money from the federal government that could benefit the school district.

With the tax increase, Surridge said he expects revenue to be about $99.1 million. The district’s expenses are currently projected to be about $102.8 million. That leaves a deficit of about $3.7 million.

The district does have a budget reserve of about $2.7 million, but that won’t cover the expenses.

“Charter schools, you’re going to see that this is a big piece of our budget,” he said.

School districts are required by law to subsidize charter schools for every public school student who would otherwise attend classes within the district.

Groups such as the Pennsylvania School Board Association are seeking reform of charter school funding, because cybercharter schools receive funding at the same rate as brick-and-mortar schools but do not have the same expenses.

Pleasant Valley School District has paid out nearly $8 million to cybercharter schools through the end of January, Surridge said. The district budgeted $3.9 million for the 2020-21 school year.

Similarly, the district budgeted $900,000 for its own cyber academy, but has spent $3.1 million.

“Charter schools an issue for us,” Surridge said. “It’s an issue this year, and it’s an issue next year.”

According to the district’s enrollment report for March, there are 2,842 students in its brick-and-mortar schools. This is an increase of 20 students since February.

The district’s cyber academy dropped by 17 students from 796 in February to 779 in March, as did the number of children in out-of-district placements. That number dropped by 11 from 163 to 152.

Cybercharter schools gained one PV student and are now at a total of 780 students. MCTI gained one student; home schooling gained one student; and private schools gained four students.

Surridge said the district has seen a continuous decline in enrollment for the past 15 years. At its peak in 2004-05, the district was at 7,000 students. The highest tax increase was in 2003-04 at 7.3%, and most recently in 2010-11 at 5.7%.

There were no new tax increases from 2012 to 2018. A 1.4% tax increase was passed each year since the 2018-19 budget.

School board Director Susan Kresge asked him about the new funding formula proposed by the state.

“We will not be hurt by that?” she asked.

“That’s my understanding,” Surridge said. “I think I’d probably more like to say we will not be helped by that. Because if you look at some of the numbers, boy, there are some pretty interesting numbers from the districts who are literally going to win the PDE lottery with funding that they would receive. … We’re not getting a big windfall.”

Surridge thinks the district could see an increase of $350,000 in the subsidy from the state. He reminded the board that the budget is still in the preliminary stage and will continue to change.