Based on Pine-Richland's history and the information available, there's a strong argument to be made that a small millage increase now would likely save taxpayers more in the long run.

Here's why, considering Pine-Richland's specific situation:

• Long Period Without an Operating Millage Increase: Pine-Richland has not had a property tax increase for eight years, and the last increase in 2017-18 was specifically for capital expenses, not to cover operational costs. This prolonged period of no increases for operations means that the district has been absorbing rising costs without a corresponding increase in its primary revenue source. This is precisely what leads to structural deficits.

• Structural Deficit Warnings: Superintendent Brian Miller has consistently highlighted that the district is facing a "structural deficit." This isn't a temporary blip; it means that expenditures are consistently outstripping recurring revenues. Without a fundamental change in revenue, the gap will continue to widen. The district's projections illustrate this: the current $1.2 million deficit is projected to balloon to $4.9 million for 2026-27, $8.9 million for 2027-28, and $12.6 million for 2028-29.

• The "Pay Now or Pay More Later" Principle: This is a common financial principle that applies strongly to public services like education.

• Deferred Costs Worsen: When a district defers addressing a structural deficit, it often leads to more severe problems down the line. This could manifest as:

• Larger, More Disruptive Tax Hikes: If the deficit grows significantly, a future board might be forced to implement a much larger millage increase to catch up, causing more sticker shock and financial strain on taxpayers.

• Significant Program Cuts: To avoid large tax increases, the district might have to resort to drastic cuts in educational programs, staffing (beyond attrition), extracurricular activities, or even basic services, which can negatively impact the quality of education and the community's appeal.

• Deferred Maintenance: While the recent budget discussions haven't explicitly focused on deferred maintenance, this is a common consequence of chronic underfunding. Delaying maintenance on school buildings and infrastructure can lead to more expensive repairs or even system failures in the future.

• Current Low Millage Rate: Pine-Richland's millage rate is already among the lowest in Allegheny County. A small increase, such as the 2.1% recommended by the administration, would still keep it relatively low compared to neighboring districts. This suggests there is some capacity for a responsible increase without making the district's taxes exceptionally high.

• Offsetting Factors: The increasing Homestead Exemption credit helps to offset a portion of any millage increase for eligible homeowners, lessening the immediate impact.

Why not just use the fund balance?

While Pine-Richland does have a fund balance, using it to cover recurring operational deficits is generally considered unsustainable. Fund balances are meant for emergencies, unexpected costs, or one-time investments, not as a continuous source of revenue for ongoing expenses. Depleting the fund balance leaves the district vulnerable to unforeseen circumstances and forces even more drastic measures in the future.

The Counterargument (and why it might be short-sighted):

Opponents argue for using the fund balance now to avoid a tax increase. While this provides immediate relief to taxpayers, the administration's projections strongly suggest this is a short-term fix that will lead to greater financial challenges very quickly. It's akin to using savings to pay for recurring bills instead of adjusting income or expenses.

The Bottom line:
Considering Pine-Richland's history of not increasing its operational millage for a long time, the documented structural deficit, and the projections of rapidly escalating future deficits, a small, proactive millage increase now appears to be a more fiscally responsible strategy that would likely save taxpayers from facing much larger tax increases or significant cuts to educational quality in the very near future. It addresses the root cause of the financial problem rather than simply delaying the inevitable.