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Rising expenses are posing tough questions for the Montoursville Area School Board.
This year's budget proposal did not include a tax increase. A tax hike of 0.30 mills was part of the 2022-23 spending plan.
But charter school expenses are the most glaring of the higher costs facing the school district, according to figures released to the board at its recent meeting.
District Business Manager Brandy Smith reported that the district's $35.5 million spending plan appears to show an increase of more than 6 percent over this year.
To help meet rising expenses, the 2024-2025 budget may require either raising taxes or borrowing money from the fund balance or doing both.
The district's real estate millage rate is at 16.53.
Cyber costs are expected to come in at $1.1 million next year, an increase of about 33% over this year.
"This is huge," Smith said.
School director Daniel Albert noted that rising expenses are catching up with the district.
"You cannot just continue to keep your taxes down," he said.
Small tax hikes included as part of recent budgets may have been prudent, he noted.
"Only two districts in Lycoming County have a lower tax rate than us," Smith said.
Without a tax hike, the district faces a possible budget deficit of $2.2 million, according to figures released to the board.
A combination of a tax increase and use of reserve funds would shrink but not eliminate the deficit amount.
The board is expected to approve a proposed final budget at its April 23 meeting. A final spending plan must be passed by June 30.
The board approved a collective bargaining agreement with the Montoursville Area Education Support Professional Association.
The five-year contract for secretaries, teaching aides, and health care aides includes annual wage increases for employees.
The board approved an agreement with Nutrition Group to provide free breakfasts and reduced lunch prices for students.
Six-week summer school programs were approved by the board. World History and Contemporary Social Science will be offered from June 10 to July 26 at a cost of $200 for students.
In personnel matters, the board voted to accept the resignation of Stephanie Lundy from the support staff.
The board approved the following personnel for positions:
• David Hutchinson, music, and Kristen George, elementary, to the substitute teacher list.
• James Warner, part-time security.
• Cody Pavlick, assistant coach, track & field, $2,600 stipend.
The board met in executive session prior to the meeting to consider contract issues.