SCASD Board OKs Final 2024-25 Budget, Tax Increase

The State College Area School Board on Monday unanimously approved a final 2024-25 budget that includes a 2.65% real estate tax increase.

The increase, which is half of the maximum allowed by Pennsylvania’s Act 1 Index, is a 1.3146 mill increase, bringing the district’s millage rate to 50.9228. The average increase across all property types — residential, commercial and agricultural — will be $132 for the year, according to the district.

Projected revenues are $197,948,622, a 5.1% over 2023-24, and expenses are $205,608,390, a 10% increase. Projected final unassigned fund balance is $13,382,428, or about 6.1% of the budget.

As usual, salary and benefits, including health care, retirement and other benefits, make up the vast majority of expenses at 72% of the budget, followed by debt service (9%), supplies and equipment (5%), purchased property and other purchased services (5%), charter schools (3%), transfers and fees (3%), professional services (2%), tand deferred maintenance (1%).

By function, instruction makes up 56% of expenses and support services are 30%.

Debt service and capital expenses totaling $19.9 million, including $5.26 million for payments related to the State High project borrowing approved through referendum, will be offset by the use of $2,349,000 of committed debt service fund balance.

Health insurance costs are projected to be $21.5 million, an increase of about $5.4 million which will be partially offset by $3.15 million from health insurance fund balance. Contracted carrier costs for bus drivers not employed by the district will increase by $470,000.

New recurring costs include the re-establishment of a full-time secondary diversity, equity, inclusion and belonging position for secondary schools, which was previously grant-funded until the end of the 2022-23 school year.

Other additions include a part-time high school math position, a grant-funded Multi-Tiered Support System teacher, AP exam expenses at a cost of $45,000, a new safety and security budget at an overall increase of $64,000 and higher substitute teacher employee rates with $249,000 in related costs.

Two full-time elementary curriculum coordinators and a full-time special education teacher will be funded by repurposing three elementary instructional coach positions.

On the revenue side, the vast majority — about 79% — will come from local sources, as is typical. Local revenue is projected to increase by $5.8 million, with about 4.3 million related to real estate taxes.

Real estate taxes totaling $118.5 million constitute 75% of local revenue and 61% of overall revenue.

Projected state revenue of $38.97 million represents 20% of the budget and is a $3.73 million increase over last year. State allocations won’t be fully set until the commonwealth passes its 2024-25 budget.

Federal revenue of $1.475 million marks an increase of about $61,000.