The Montoursville Area School Board at its June meeting approved a $38 million spending plan for next year that includes a 0.56 real estate tax millage increase.

With expenses exceeding revenues by more than $1 million, it amounts to a deficit budget.

Those with properties assessed at $100,000 will pay an additional $56 in real estate taxes in the coming fiscal year.

With the median assessed values of properties coming in at $121,000, most will pay more.

Business manager Jessica Reich noted that Montoursville is among seven area school districts imposing tax hikes on property owners with rising health insurance costs being among key drivers for higher expenses.

Montoursville is seeing a 9.9% increase in insurance costs.

A bond payment of more than $800,000, Reich said, is reflected in the budget.

She noted that the district should finish this fiscal year on June 30 with a fund balance of $3.72 million.

The vote to pass the budget with the tax hike was 9-0.

Following the vote, Catherine Burns spoke out against the tax hike.

She apologized to the public for working to help elect several board members who voted for the budget that included the increase.

“I hope you never have to walk in the shoes of many of the residents of this school district where they have to make cutbacks. They have to change their family style of living,” she said. “I am very disappointed.”

In personnel matters, the board approved the hiring of Shannon Perrotta as a kindergarten teacher at a salary of $55,884.

Other hirings approved by the board were: Ken McDermott, part-time building security, $12.50 per hour; Moriah Vige and Pam Bardell, part-time paraprofessionals, $17 per hour.

The following were approved for athletic coaching positions:

• Naomi Alexander, junior high cheerleading assistant.

• Ashley Hess, cheerleading, first assistant.

• Eric Wise, golf, head coach.

• Mike Mussina, golf, assistant.

The board also approved the following:

• An agreement with the law firm of Saxton & Stump, for legal counsel.

• A one-year extension of an agreement with the borough of Montoursville for a school resource officer.

• Agreements with BLaST IU #17 for various services.

• Insurance coverage for the district at a cost of $313,379.

• An athletic training services agreement with UPMC.

• An agreement with Larson, Kellett & Associates for a financial audit for fiscal year 2026.