On Monday evening, the State College Area School District board of directors voted to approve a proposed preliminary budget for 2016-17. Board members reviewed and discussed the budget during a meeting on Dec. 7.
The budget includes a real estate tax increase of 4.32 percent.
Broken down, that figure is the sum of the 2.4 percent allowed under the base Act 1 Index, which dictates the maximum real estate tax increase that is allowed for the district, and the 1.92 percent for referendum debt exceptions.
The board can also choose to take advantage of all referendum debt tax exceptions in accordance with the recommendations of the district administration.
Sign Up and Save
Get six months of free digital access to the Centre Daily Times
If exceptions are not taken during the year of eligibility, they are forfeited for future years.
In order to capitalize on the referendum debt tax exceptions, the district must tax to the Act 1 Index limit of 2.4 percent.
In addition to the real estate tax increase, the proposed preliminary budget also includes a total estimated revenue of $143,684,629 with total expenses estimated at $143,135,910.
Superintendent Robert O’Donnell said that the administration was expecting to present a preliminary budget on Jan. 11.
The 2016-17 proposed final budget is scheduled to be presented on April 25 and placed before the board for approval on May 9.