All Centre County school districts proposed budgets that raise real estate taxes. Here’s a look
All Centre County public schools are raising real estate taxes in their proposed 2022-2023 budgets, citing increases due to inflation, charter school tuition and rising transportation costs.
After many schools suspended raising taxes during the height of the pandemic, districts are now having to raise revenue to cover rising costs.
The pandemic has had a impact on school budgets, increasing the amount of support staff and expenses for schools, Randy Brown, State College Area School District’s finance and operations officer, said.
“We’re continuing to feel the impact of COVID to some extent,” Brown said in a recent interview. “Not necessarily in the supplies of masks and gloves and that type of thing, but the different types of instruction and the expectation of what we believe will be elevated virtual school enrollments, meaning students that are in the virtual academy instead of coming in person every day.”
Districts are also focusing on saving money for projects or paying off promised investments that may have been put to the side during the pandemic years. One part of Bellefonte Area School District’s tax increase, for example, is to help raise funds for the ongoing elementary school project.
Charter school tuition also has an impact on school’s budgets and higher charter enrollments can lead to tax increases, district officials said.
BASD’s director of fiscal affairs, Ken Bean, said charter school tuition costs are one reason why the district is raising taxes. BASD has 174 students enrolled in charter schools, costing the district an estimated $3.5 million for the 2022-2023 school year. Charter school tuition makes up 3.6% of SCASD’s budget, $6.5 million for the 2022-2023 school year.
Districts are also raising staff wages to combat shortages across the state, Lynn Naugle, business manager for Penns Valley Area School District said. All support staff positions for PVSD received a $2 increase in fall of 2021, part of the district’s plan to attract and retain staff. For SCASD, retirement contributions from the district increased $1.9 million in the past year.
Rising gas prices and transportation costs have also started to affect districts’ budgets for next year.
“We’re seeing increases in fuel, just like everybody else,” Naugle said. “Some of our services now have fuel surcharges attached, like garbage disposal services.”
As local sources make up the majority of the district’s funding, raising real estate tax rates is one way districts can combat rising expenditures.
Below is a snapshot of the proposed budget at each school district. The average annual tax increase is based on the median assessed home value in each district.
Property owners may be eligible to receive school property tax relief through a “homestead or farmstead exclusion.”
A homestead exclusion reduces the assessed value, lowering property taxes and school district taxes. The tax relief amount differs by each district. Applications are sent out annually in December with an application deadline of March 1.
Bald Eagle Area School District
Total estimated revenues: $35,005,725
Total estimated expenses: $35,546,923
Real Estate Tax increase: 3.34%
Annual tax increase for average homeowner: $70
What’s next: Bald Eagle’s school board voted to approve the preliminary budget at its May 12 meeting. The final budget will be voted on at the board’s June 16 meeting.
More information: Bald Eagle’s preliminary budget
Bellefonte Area School District
Total estimated revenues: $54,485,000
Total estimated expenses: $57,260,000
Real Estate Tax increase: 2.1%
Annual tax increase for average homeowner: $54.33
What’s next: Bellefonte’s school board approved the preliminary budget on May 10 but the final vote will occur at the board’s June 14 meeting. The board will next meet on May 24.
More information: Budget presentations and documents can be found on the district’s BoardDoc’s website.
Penns Valley Area School District
Total estimated revenues: $30,902,424
Total estimated expenses: $31,476, 053
Real Estate Tax increase: 4.3%
Annual tax increase for average homeowner: $94
What’s next: The Penns Valley school board approved the preliminary budget at its May 18 meeting. The final vote will occur at the board’s June 22 meeting.
More information: Penns Valley’s budget summary can be found on the district’s website.
Philipsburg-Osceola Area School District
Total estimated revenues: $34.3 million
Total estimated expenses: $34.7 million
Real Estate Tax increase: 3%
Average annual tax increase for Centre County residents: $45
What’s next: POSD’s board has not yet voted on the preliminary budget but is expected to during its May 25 meeting, after which the budget will be available to the public.
State College Area School District
Total estimated revenues: $177,037,552
Total estimated expenses: $180,273,275
Real Estate Tax increase: 3.4%
Annual tax increase for average homeowner: $113
What’s next: The State College school board will vote on the final budget at its June 3 meeting.
More information: Budget documents can be found on the district’s BoardDocs website.