PHOTO PROVIDED The Keystone Central School District Board of Directors is pictured during its work session on Thursday, June 11.

MILL HALL — Though initially accepting a proposed 2026-2027 budget without a tax increase, the Keystone Central School District Board of Directors has changed course and will consider a 3.5 percent millage rate increase as it continues to find ways to reduce its budget deficit in future years.

Though not directly stated during the meeting by board members at its work session Thursday night, The Express contacted Business Manager Joni MacIntyre for clarification on the millage rates for the proposed $94.2 million budget. She said the increase was at 3.5 percent, with the board’s agenda reflecting the following millage rates:

— Clinton County 15.32 mills

— Centre County 42.97 mills

— Potter County 56.67mills

— Earned Income and Net Profits Tax under Act 151 – 1 percent.

Discussion amongst the board on Thursday night was a bit somber, as many members expressed their hope that the community will understand adjustments need to be made on various levels.

It was noted by Board Member Dr. Bill Baldino there was a consensus from the Finance Committee to adjust the budget. He added this will reduce the deficit to $2.1 million.

Board Member Chris Scaff thanked MacIntyre and her office for reducing the budget by $4,402,743 in the last three months.

“I feel safe to say there’s a lot more stuff coming that we just were working on. It’s not just flipping a switch,” Scaff said.

He, again, encouraged fellow board members to review the various budgets outlined to find other ways the budget can be reduced.

“I think that everybody can help jump in and look at other ways and better ways to do things. We can keep scratching at it,” he said.

Board Member Manny Rodriguez spoke to all those who were listening to Thursday’s meeting.

“Everybody knows where we’re at with everything and the debt we have. Everybody needs to play ball. It can’t just go one way. It can’t just be a tax increase. It can’t just be kicking people out of jobs,” he said. “I’m asking everybody — tax payers, staff — everybody we all have to play ball.

“Keep that in mind when we go vote next week. I hope everybody is listening. This is not just us here making a decision,” he concluded.

Board Member Jason Smith spoke to Rodriguez’s comments. He noted, as board members, they must look at ways to ensure the school remains functioning per state mandates.

“Because of how the law is set up, we don’t get the chance to go bankrupt. We are required by law to keep our doors open, the lights on and keep education working,” he said.

He touched on the potential of receivership and how he would like to avoid ever coming close to it.

“To me, that is something I very much wish to avoid. However much it chaffes me to consider raising taxes,” he said. “I agree with Manny’s statements. There’s going to have to be a lot of things all around to change.”

Scaff noted the district staff have made strides in reducing costs and that there is still more work to be done, noting the reality of the situation.

“Reality is a tough nut. It’s past years of having funding that isn’t here anymore. Tons of money for COVID and everything else. Things went wild with spending and those funds dried up. Nobody anticipated that. Nobody thought about it,” he said. “Now it stinks that we’re in the situation we are. But there’s some things we just don’t have a choice on and we’re just going to have to do the best we can do with everybody in mind.”

Board President Elisabeth Lynch spoke briefly about the budget breakdown, noting that roughly 70 percent goes towards healthcare benefits and salaries. The remaining 30 percent is often fixed costs such as electricity, sewer, bonds, insurances and cyber charter payments.

“So when you see 30 percent left, it’s not really left. It’s already allocated,” she said. “I’m going to be voting to keep the buildings open and for the students to have a quality school to come to.”