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MILL HALL – A majority of Keystone Central School Board members appear poised to approve a 3.83% property tax hike next fiscal year to help pay for more staffing, more school safety strategies and higher health insurance costs.
Meeting Thursday night, the board did not vote on a preliminary budget but all - save for board member Jeff Johnston - agreed to the tax and budget increase.
All told, the preliminary expense budget comes in at about $89 million.
A 3.83% increase would generate about $999,981 and would represent, on average, a $55 rise for residential property owners in Keystone next year, according to an estimate released by the board.
Superintendent Martin opened the meeting by clarifying that there would not be a vote at this meeting.
"The presentation for this evening is for review and information only. There’s no vote being taken this evening; we are making a recommendation," Dr. Martin explained.
While there is no single reason for the tax increase, according to Superintendent Martin,
"There isn’t any one thing that is contributing to all of the increased expenses. The partial budget increase is being proposed because the tax increase generates revenue to close the budget gap without dipping into reserves. An increase would present a balanced budget,"
Martin added that because of inflation, the cost to operate schools in the district has increased, necessitating additional revenue to cover higher costs.
"The school district has not raised taxes in three years; the last time we did a partial increase was for the 2019-2020 school year," said Superintendent Jacquelyn Martin.
The board was given three options.
The first was a no-tax-increase budget.
The second projection was a 2.55% increase.
The third - and the one a majority appeared to favor - was the 3.83% increase,
The 3.83% increase would pay for:
– Added staffing at the Career and Technical Center (CTC) costing about $340,000 (salary/benefits focusing on Homeland Security Education).
– More "school safety support" at a cost of $180,000 (salary and benefits).
– Help maintain the district's $17 million budget reserve.
– Pay for 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.
The board indicated it will vote on the budget at its May 11 meeting.