Scranton property owners could see their school taxes increase by 6.7% next year.
Even with the tax hike, the Scranton School District faces a $1.7 million deficit for 2020.
As school directors continue to review the comprehensive recovery plan, which calls for yearly tax increases, the board plans to vote on the $168.3 million proposed preliminary budget next week.
The recovery plan, submitted to the state Department of Education by Chief Recovery Officer Candis Finan, Ed.D., last week, calls for the district to raise taxes to the state Act 1 index, usually about 3.4%, for the next five years. The plan also calls on the district to apply for exceptions from the state to raise taxes higher than the Act 1 index if necessary.
The total estimated tax increase of 6.7% includes the allowable 3.4% increase, about 4.5 mills, and estimated exceptions to Act 1 totaling 3.34%, or about 4.5 mills. A total increase of 9 mills would mean the owner of a property assessed at $10,000 would pay an additional $90 in taxes next year. A mill is a $1 tax for every $1,000 of assessed value.
“I certainly am in support of everything we can do to keep those numbers as low as we possibly can,” Director Katie Gilmartin said.
Between now and when the board must pass a balanced budget at the end of December, officials said they must eliminate the $1.7 million shortfall and look for ways to lower the potential tax increase. The budget calls for no salary increases.
“Everyone understands the gravity of the tax increases,” Gilmartin said. “Everyone will work together to do what they can do to balance this budget.”
Board Vice President Greg Popil, chairman of the budget and finance committee, called the potential tax hike “ridiculous.” He and other school directors have called on Harrisburg to provide more adequate funding. The district needs an additional $18.9 million a year to receive the per-pupil funding of similar urban districts.
“We are being underfunded,” Popil said. “Because of that, our citizens are being penalized.”
To achieve solvency within five years, the plan states the district must raise taxes every year. If the district does nothing, it faces a projected $39 million deficit in 2024.
“I can’t stand seeing the taxes go up that high,” Director Tom Schuster said. “It bothers me, but we’re trying to get the district where it needs to be.”
Other school directors shared similar thoughts.
“Do I want to raise taxes? No,” Director Mark McAndrew said. “But, the preliminary budget has to align to the recovery plan.”
The board will vote on the preliminary budget at a special meeting Wednesday, scheduled for 7 p.m. in the board room of the Administration Building, 425 N. Washington Ave.
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