The Cornwall-Lebanon School District
General Fund Budget
Public school districts in Pennsylvania are required to adopt a final budget no later than June 30 for each succeeding fiscal year.
Act 1 of 2006 establishes the process which school districts must follow in adopting their budgets. Act 1, as amended by Act 25 of 2011, establishes the maximum percentage that a school district may increase its real estate tax rate without voter referendum or exceptions that must be approved by the Pennsylvania Department of Education. This index is calculated based upon the Pennsylvania statewide average weekly wage and the Federal employment cost index for elementary/secondary schools, which is then adjusted for each district’s market value/personal income aid ratio.
Each fiscal year a school district must choose to either adopt a preliminary general fund budget or adopt a resolution stating that taxes will not be raised above the school district’s adjusted index. A preliminary budget must be adopted no later than 90 days prior to the primary election, and the resolution not to exceed the index must be adopted no later than 110 days prior to the primary election.
The 2019-2020 General Fund Budget
The Board of School Directors of the Cornwall-Lebanon School District, at its regular scheduled Board Meeting on June 17, 2019, approved a Final General Fund Budget of $80.6 million. The final budget includes a 2.79 percent increase in the real estate tax rate over the existing rate for the 2018-2019 fiscal year. The Act 1 Index limit for Cornwall-Lebanon for the 2019-2020 fiscal year is 2.9 percent. The increase in the tax rate amounts to a $67 increase in the real estate tax bill for the median homeowner having an assessed property value of $159,900. The real estate tax rate established as a part of this budget is 15.4819.
Property tax relief in the amount of $121.61 will be provided to approved homestead and farmstead property owners on their July 1, 2019 property tax bills. This relief will appear directly on individual tax bills as a reduction in the assessed value of each approved homestead and farmstead property.
Total expenditures are projected to be $80.6 million in the 2019-2020 final budget. The increase in expenditures represents a $2.5 million or 3.2 percent increase from the 2018-2019 budget. Expenditures in the 2019-2020 final budget include an estimated increase in employee salaries and benefits of $1.6 million. The cost of employee retirement and healthcare make up $0.9 million of the $1.6 million increase. The District’s Special Education Program costs are also expecting to increase significantly by $0.65 million or 16.1% over the 2018-2019 budget.
Total revenues in the 2019-2020 final budget are projected to increase by $2.6 million or 3.4 percent from the 2018-2019 budget. Revenue from local sources, other than from an increase in the real estate tax rate, is expected to increase by $0.6 million or 1.1% from 2018-2019. Revenue from state sources is projected to increase by $0.7 million or 2.9 percent, the state share of retirement and social security costs making up $0.3 million of the $0.7 million increase.
The District anticipates using Assigned Fund Balance of $0.6 million to balance the 2019-2020 budget, using previously assigned fund balance for retirement cost leveling.