With Montoursville Area School District facing a more than $1 million budget deficit, a tax increase seems to be a foregone conclusion next year for property owners.

The school board considered various tax-hike rates at its recent meeting with a 3.3% increase as a likely figure.

That figure, hiking the overall millage rate from 17.09 to 17.65, would still leave the district with a budget deficit next year, according to business manager Jessica Reich.

For real estate with an assessed value of $121,000 – the median for Montoursville properties – it would mean a $68 tax increase next year.

Reich said while she’s not comfortable with raising taxes, her recommendation is to go with that 3.3 percent increase.

The 0.56 millage hike would generate an additional $446,000 in revenue for the district.

Borrowing more than $400,000 from the district’s $4.9 million fund balance would still leave the district with a deficit.

No tax increase might require removing more than $800,000 from the fund, according to figures Reich provided to the board.

At this point, next year’s budget is projected at $36.5 million in revenues and $37.8 million in expenditures.

“You are looking at a deficit of $1.3 million,” Reich said.

Reich noted that a 9.9 percent hike in health insurance costs is a key driver for the district’s increased expenditures.

District Superintendent Dan Taormina said insurance expenses are likely to continue to rise in coming years.

Board member Todd Badger said a tax hike seems to be inevitable.

Ron Snell, a former board member, urged school directors to cut expenses rather than raise taxes.

“You’ve got to show that you care about the taxpayers instead of spend, spend, spend,” he said.

This year’s budget was passed without a tax increase.

The board is expected to approve a proposed budget at its May 12 meeting. A final spending plan will be passed in June.

In other matters, the board voted to hire Ronda Albert as high school principal at a salary of $100,00.

Albert replaces Matt Johnson, who was approved by the board as director of curriculum, last month.

She will begin her duties in July.

The board approved the hirings of Tiffany Barnhart as an English teacher at an annual salary of $59,968 and Sydney Hunsinger to teach science at a salary of $54,200.

The board approved Jessica Cole as head cheerleading coach at a stipend of $6,600 and Dave Myers as assistant football coach at $6,200.

The board approved Lauren Miller and Ryan Smith as substitute teachers and accepted the resignation of armed security employee Michael Orwig.