The State College Area School District Board of Directors on Monday approved a resolution that guarantees its real estate tax increase for 2024-25 will not exceed the limit set by the Pennsylvania Department of Education.
Board members unanimously adopted the Accelerated Budget Opt Out Resolution certifying that the tax increase next year will not exceed 5.3%, the Pennsylvania Act 1 inflation limit set annually by the state.
School districts can only exceed the Act 1 Index maximum by seeking exceptions from the Pennsylvania Department of Education or voter approval. SCASD has rarely sought exceptions to the Act 1 limit, but most notably did so in 2014 with a successful voter referendum to fund construction of the new State High.
By adopting the resolution on Monday, the district assures that it can fund its budget with a tax increase of 5.3% or less. The district noted that the resolution does not mean the tax increase, which will be determined in the coming months, will necessarily be 5.3%, only that it will not exceed that.
According to a November presentation, a proposed budget will be presented at the board’s April 15 meeting and a public hearing will be held on May 20. Final adoption of the 2024-25 budget is scheduled for June 3.
With no tax increase, projected real estate revenue for 2024-25 would be $120,191,546 and total revenue would be $191,774,201, according to the presentation. A 2% increase would mean projected real estate revenue of $122,630,343 and total revenue of $194,212,998.
At the maximum possible increase of 5.3%, projected real estate revenue would be $126,654,037 and total revenue would be $198,236,692.
SCASD’s 2023-24 budget had a 4.1% increase, the Act 1 limit, bringing the district’s millage rate to 49.6082. Total projected revenues were $188,350,630 with projected real estate tax revenues of $118,745,743.
