The Pleasant Valley School Board approved the preliminary budget for fiscal year 2020-21 Thursday night.

It was released for public view on Dec. 19 at the district office and on the website. The final budget must be passed by June 30.

Susan Famularo, the business manager for Pleasant Valley School District, explained to the board that Monroe County underwent a reassessment. This reset the assessed value from 25% to 100% of the market value. This means that instead of a millage of 150.0160 mills, it becomes 22.6015 mills.

The proposed real estate tax millage is 23.6150 mills, which is a 1.035 mill increase or a 4.5% increase from the 22.6015 mills.

Famularo used an example to explain what the increase means in real dollars. She said that a home with an assessed value of $139,709 would receive a tax bill of $3,299. This is an increase of $142 from the 2019-2020 fiscal year budget.

“The millage increase represents the Act I Index of 3.2% plus exception for special education,” Famularo said in her report to the board. “Beginning with a preliminary budget that utilizes the index plus exceptions allows the school district the maximum flexibility.”

The rate in the preliminary budget cannot be increased, but in can be decreased, she said.

The total amount of the preliminary budget is $110,374,119.

“Traditionally, a preliminary budget is just that. No one should panic,” said board President Donna Yozwiak.

There will be many administration meetings to work on the budget, she said. “This is just a starting point.”

All of the line items of the budget will be reviewed and they will look for reductions, Famularo said. Because there are unknowns such as staff retirements and the final pricing of insurance, the business office had to use estimates based on trend history in the budget, and anticipates needs such as technology infrastructure upgrades.

The budget also includes the district’s fund balance, or reserves, of $8.5 million, she said.

“The largest unknown revenue item is state funding, and this draft of the budget shows level state funding,” Famularo said.

Gov. Tom Wolf is expected to release the proposed state budget in early February.

“In recent years, PV has worked hard to contain costs, doing such things as negotiating fair labor contracts, reconfiguring the school district, refinancing bonds, subcontracting transportation, condensing and eliminating bus runs, increasing ACCESS reimbursements, creating the PV Cyber Academy, closing three elementary schools, eliminating staff positions (over 124 professional administrative and support staff positions over the past 10 years), joining purchasing consortiums and performance contracting,” Famularo said.

“The fund balance has been used to mitigate tax increases. Property taxes did not increase for six years between 2012 and 2017, and increased minimally in 2011, 2018 and 2019, resulting in an average tax increase of 0.4% per year over the last eight years.”