MILL HALL — The Keystone Central School District Board of Directors adopted their final budget for the 2025-2026 academic year — which includes a 1.78 percent tax increase — in a split, 5-3 vote.

This is the third year in a row that the district has elected to raise taxes in an effort to diminish a projected deficit in the coming years.

The passage of the $92 million budget brings millage rates to 14.41 mills in Clinton County, 46.28 mills in Centre County and 55.98 mills for residents of Potter County.

Ahead of the vote, several board members voiced concerns about approving a tax increase.

“Is this tax increase going to fix the financial budget?” asked Board Member Chris Scaff.

When the district’s financial officer responded “no,” Scaff replied, “Then why even waste our time when we can cut expenses?”

Scaff has repeatedly criticized what he sees as unnecessary spending. He cited both the district’s recent purchase of a $20,000 LED sign and a nearly $2,000 rug featuring the school’s logo as examples of their frivolous spending.

“We can curb our expenses. We may not cut a million dollars, but I cannot vote for a tax increase on businesses and residents when we’re just buying whatever we want,” he said, adding that he believes the board has failed in its responsibility to taxpayers.

Board Member Elisabeth Lynch agreed, saying more consistent oversight is needed.

“The Pennsylvania School Board Association recommends the school board work with administration every month on a category of the budget,” Lynch said.

She added that until the district has a better grasp on its finances, there should be a directive to spend only on essential priorities related to student safety and education.

Board Member James “Butch” Knauff said he shared some of the concerns raised by Scaff and Lynch but emphasized that much of the district’s spending is non-negotiable.

“Most of the money in our budget is spent on things we can’t control,” he said, citing rising insurance premiums, existing contracts, cyber school tuition and contributions to the Public School Employees’ Retirement System (PSERS).

“If you look at raising taxes, it will not even cover what we’ll be charged extra for our insurances,” said Knauff. “I feel really bad about raising taxes, but, unfortunately, we have to keep up with inflation.”

He added that unless state and federal governments increase funding to fully support public education, the burden will remain on local taxpayers.

“If we don’t raise taxes, we won’t be able to recoup this money. I think it’s prudent on our part to do what we have to do to keep this district alive,” Knauff said.

In response to Lynch’s suggestion for a line-by-line review of the budget, Knauff noted that the board’s Finance Committee already provides opportunities for that kind of discussion.

Board Member Tracy Smith addressed Scaff’s argument about discretionary spending, saying that small cuts won’t close the gap.

“To cut the amount of money that’s needed to balance the budget, or to not raise taxes, means millions of dollars, which means student programs,” Smith said.

She challenged Scaff to consider which programs he’d be willing to eliminate — whether career and technical education, the arts or athletics.

In the final vote, board members Smith, Polly Donahay, Roger Elling, Jeff Johnston and Knauff voted in favor of the budget. Board Members Scaff, Lynch and Bill Baldino voted no. Board Member Tom Cannon was absent.