What Centre County schools are raising real estate taxes this year? Here’s a look

Four Centre County public schools are raising real estate taxes this year citing loss of federal pandemic relief funds, rising costs and more.

This is the second year of tax raises for many of the districts, with only Bald Eagle Area having a proposed budget without a tax increase. Interim Business Manager Dave Piper said the district was able to forgo raising rates due to last year’s 3.34% increase.

Still, many districts are playing catch up after years of not raising taxes during the pandemic. Although the majority of a district’s funding is local, the loss of federal Elementary and Secondary School Emergency Relief Funds issued during the pandemic means districts are having to find additional revenue to balance the budget.

Some of the major expenses for each district are salaries and benefits, often making up close to 2/3 of a district’s total expenditures. One major benefit expenditure is a district’s payments into the Public School Employees’ Retirement System. For the 2023-2024 fiscal year, PSERS contributions are down at 34% but are expected to rise in the coming years, according to Ken Bean, Bellefonte Area’s director of fiscal affairs.

Districts have also implemented new programs and employees that factor into rising costs. At the start of 2023, for example, Penns Valley Area School District set up its own police department incurring four additional district employees and start-up costs.

Below is a snapshot of each district’s preliminary budget. Average tax increased are calculated by using the average property value of all residential homes within the district.

State College Area

Expenses: $187,132,736

Revenue: $188,350,588

Tax raise: 4.1%

Annual tax increase for the average homeowner: $141

What’s next: The board unanimously approved the final budget during its June 5 meeting.

Bellefonte Area

Expenses: $59,775,000

Revenue: $57,070,000

Tax raise: 2%

Annual tax increase for the average homeowner: $56

What’s next: The board unanimously approved its final budget during its June 13 meeting.

Bald Eagle Area

Expenses: $37,629,220

Revenue: $37,005,052

Tax raise: 0%

Annual tax increase for the average homeowner: $0

Next steps: The board unanimously approved its final budget during its June 14 meeting.

Penns Valley Area

Expenses: $32,372,074

Revenue: $32,372,074

Tax raise: 2.49%

Annual tax increase for the average homeowner: $57

What’s next: The board unanimously approved its final budget during its June 21 meeting.

Philipsburg-Osceola

Expenses: $36,942,715

Revenue: $36,965,616

Tax raise: 3.9%

Annual tax increase for the average homeowner: $58

What’s next: P-O will post public notice of intent to approve the budget on June 12 before adopting the final budget on June 28.

This story was originally published June 5, 2023 at 1:47 PM.