With real estate revenues and earned income tax continuing to increase, Parkland administrators recommended the district remain within the Act 1 Index for the 2015-16 school budget.

At the Jan. 20 meeting, the board approved a resolution not to increase taxes more than the 1.9 percent index calculated by the state Department of Education.

The action, which allows a maximum millage increase of 0.26, would raise the district's tax rate to 14.35 mills.

For a property assessed at $100,000, the tax increase would be $26 for a $200,000 assessment. The owner would pay an additional $52.

In a presentation to the board, Business Manager John Vignone commented on the situation.

"Real estate is trending positive," Vignone said. "Most of our revenue comes from this area. The reputation of our school district continues to attract homebuyers."

Vignone also reported increases in earned income tax are benefitting the district budget.

The EIT is deducted from paychecks of individuals working in the Parkland district.

"We are seeing good employment numbers," Vignone said. "Businesses and industries, some new to the area, are increasing employment."

He projects $151.1 million in revenues for 2015-16, a 3-percent increase over last year, and $159.3 million in expenditures, a 4.7-percent increase over 2014-15.

Although the situation will change as administrators work through the budget in the next several months, presently a shortfall of $8.2 million exists.

Vignone recommended appropriating $4.5 million from the fund balance and a transfer of $500,000 from the capital reserve fund to bring the deficit down to $3.25 million.

Board member Mark Hanichak commented on the scenario.

"You've got to keep an eye on expenses," Hanichak said, expressing caution about running down the fund balance and depending on it indefinitely.

Although 82.10 percent of Parkland's funding is local, Vignone projects 16.86 percent of the budget will come from the state and 1.04 percent from the federal government.

He expects Gov. Tom Wolf to provide additional assistance to schools, if he can find funds at the state level.

Vignone anticipates a reduction in the ACCESS funds received from the federal government.

District Superintendent Richard Sniscak offered thoughts on the proposed budget.

"We are going to live within the index of 1.9 percent," Sniscak said. "The plan we have is very solid.

"Real estate and EIT revenue sources are working in our favor."