CASD board approves budget with 4% tax increase
The Chambersburg Area school board recently approved a $193,706,184 budget, which includes a 4% tax increase, for the 2023-24 school year.
With $191,505,652 in anticipated revenue, the budget has a $2.2 million deficit. The district will use part of its fund balance to fill the gap.
The 4% tax increase will take the millage rate up to 127.3972. One mill equals $1 for every $1,000 of a property's assessed value. According to the budget summary, the district expects to bring in about $81.3 million in real estate taxes. That's an increase of about $5.56 million over 2022-23.
Here are some highlights from the approved budget:
As with any budget, exactly how much state funding the district will receive won't be known until sometime after the state approves its budget. However, the district anticipates an increase of about $3.75 million.
$110,165299 is budgeted for regular instruction
$10,477,291 is budgeted for debt service
Salary and benefit costs are expected to rise by more than $5 million, to about $115.8 million. Health care costs will go up 10% and the district will have to pay 34% more for the state pension program.
The district will pay $240,000 more than last year for alternative education placements.
Increases for special education and charter schools
Just over $4 million will be transferred to the capital reserve fund, per a resolution the board approved right after the budget. The capital reserve fund is projected to increase from $6.5 million to $11,655,000 by June 30, 2024.
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Board members disagree over tax hike
The board voted 5-3 Tuesday to approve the budget. Benjamin Raber, Carl McKee and Lance Walker voted it down. Joan Smith was absent.
McKee and Raber stood on opposing sides of the tax hike. McKee thought it should be lower due to the burden it put on senior citizens, while Raber said he supported raising taxes to the 5.4% maximum.
"All year long I hear about how we don't have enough money. Tonight, if we move forward with 4%, we're leaving $1.3 million on the table, for what? To save taxpayers a dollar a month?" Raber said.
Although he voted to pass the budget, William Lennartz said he would rather see a lower tax rate of 3%. He pointed to data that shows property taxes in the school district went up 93% between 2001-02 and 2020-21.
Raber and Walker also took issue with the school board not providing more money for staff such as lunch aides, teacher aides and custodians, who make anywhere from $11 to $13 to start out.
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Resolution to build reserve for capital projects
The board voted unanimously, with Smith absent, to approve a resolution to require 1% of the millage rate to be transferred from the general fund to the capital reserve every school year.
The goal is to prepare for big projects coming up in the next few years, including $26 million project to update the mechanical, plumbing and electrical systems at CAMS South in 2024-25 and a $21 million project with the same work at CAMS North two years later. More than $77 million in projects are planned through 2031-32, according to a project timeline.
Norcross explained at a prior board meeting that it will prevent "wrap-around financing," which he said has become a problem for the school district to pay for.
“There's no way we could ever come out, use that out of regular funds, so we have to start planning for it. That’s what this will do.”
Future boards could always remove or change the resolution.
Amber South can be reached at asouth@publicopinionnews.com.
This article originally appeared on Chambersburg Public Opinion: CASD board approves $193.7K budget with 4% tax increase
