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MILL HALL -- The Keystone Central School District Board of Directors approved a preliminary 2023-2024 budget, and with it, the first tax increase in three years. The budget -- which includes a 3.83 percent increase -- was moved ahead in a 5-3 vote.
Eight board members were present at the meeting. School Board Vice President Roger Elling, Jeff Johnston, Butch Knauff, Wayne Koch and Tracy Smith all voted in favor of the budget.
Board President David Dietrich, Elisabeth Lynch and Frederick "Rick" Schulze were the three remaining members who voted against the proposed budget increase. Polly Donahay was absent from Thursday's meeting.
Although the preliminary budget has been approved by board members, a final vote for its adoption will not be held until June.
Following the vote, Elling offered comment regarding his decision - noting he was looking toward the future.
"I've never wanted to raise taxes. However, in light of what's been going on in the country, and with all the things that are coming down the pike, I, unfortunately, feel that we need to raise the taxes; that way we're not drawing from our funds, general funds and stuff like that," he said. "So, I don't like raising the taxes, but based upon the current need and what we feel is going to be happening here in the future, we actually are going to do this."
Elling acknowledged that many tax payers in the district may have strong opinions about the approval of the budget.
"I like the fact that we're not raising it to the full extent that we could. And if we do have to raise taxes, I prefer that we raise taxes gradually; we don't go up and down, up and down," he said. "I know that's something that's been done in the past, and I know that doing that roller coaster-type stuff actually does cause some problems. Raising taxes is going to cause problems with everybody, but it's one of those situations where it's a little bit easier if we do it gradually rather than all at once."
The total estimated expenditures for the 2023-2024 final General Fund Budget amounts to $89,377,620. This imposes a 3.83 percent tax increase for residents within the district, which will represent, on average, a $55 tax increase for property owners next year according to an estimate released by the board.
The 3.83 percent tax increase for the upcoming fiscal year will generate around $999,981 in revenue, which will be used to fund additional staffing, school safety strategies, and higher health insurance costs.
The 3.83 percent increase would cover:
-- Added staff at the Career and Technical Center (CTC), costing about $340,000 (salaries and/or benefits, with a focus on Homeland Security Education).
-- An additional $180,000 in "school safety support" (salary and benefits).
-- Maintenance of the district's $17 million budget reserve
-- The projected $1.15 million increase in health care insurance for employees (11.9% increase over last year).
-- Help fund $2 million in Renew America Schools program.
-- Help pay the district's bond (loan) obligation of $250,000.
Superintendent Dr. Jacquelyn Martin provided an extensive statement regarding the increase upon a request from the finance committee, at the May 4 work session. The committee requested the statement, according to Martin, so that the public is aware of all the actions that have been taken to maintain the budget by cutting costs and expenditures in the district.
At the time, Martin emphasized that the committee wanted the public to know the district was constantly searching for ways to save funds and reduce expenditures through the use of need-based budgeting procedures rather than fixed amounts per line item or yearly allotments.
According to a notice provided by business manager Joni MacIntyre, the Proposed Final Budget for the General Fund of Keystone Central School District for the fiscal year 2023-2024 is available for public inspection on the district website and is expected to be presented for adoption as a Final Budget at the school board meeting June 15, 2023, at 6:30 p.m.
The budget may be amended before or after final adoption.