Erie school taxes to increase, but offset for many by homestead exemption
Hopeful of receiving an increased state subsidy, the Erie School Board waited until it couldn't wait any longer.
The school board, which was faced with a June 30 deadline to finalize its 2024-2025 spending plan, voted at a noon meeting on Friday to approve a $272 million budget that will raise taxes by $85 a year for a homeowner with a house valued at $100,000.
For many taxpayers, that 4.46% increase will be largely offset by a $79 increase in the homestead exemption.
Erie schools Superintendent Brian Polito said the school board had earlier discussed a 2.46% increase that would not have included funding for after-school programs that have been paid for since 2022 with Elementary and Secondary School Emergency Relief or ESSER funds.
That funding ends on Sept. 30, leaving school districts, including Erie, to decide if they want to continue funding these pandemic-era programs.
The budget adopted Friday, however, will continue programs offered at the Urban Erie Community Development Corp., Booker T. Washington Center, Martin Luther King Center and the Boys and Girls Club of Erie.
Is more money coming?
The Erie School District, along with others across the state, has been anticipating an increase in education funding as part of the upcoming state budget.
But the governor's budget still awaits approval. The state Senate recessed Thursday with plans to take up budget deliberations again on Monday.
Polito said that left the school district to calculate its budget based on a typical 2.5% increase in its state educational subsidy. The budget cannot be updated if additional funding is approved, Polito said.
"We would take that into consideration next year and it would likely result in a tax reduction then," Polito said.
But in light of the extra $18 million subsidy that has been proposed for Erie, some school directors were hesitant Friday to approve a tax increase that might not ultimately be needed.
Several proposed smaller rate hikes or looked to a list of proposed cuts that could be made to offset the proposed tax increase.
Exploring other options
School Board Vice President John C. Harkins said he was hopeful that the district could count on increased funding and that a 2.46% increase would be adequate.
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Director Daria Devlin proposed at one point during the meeting that the district's budgetary reserve be reduced to allow for a lower tax increase. More than anything else, though, Devlin said repeatedly that if the district does receive more than from the state that adjustments have to made in the next year's budget to benefit taxpayers.
"I don't want to have to do this again," she said.
More: Erie's after-school programs at risk as COVID aid expires. What will it cost to keep them?
School Director Gwendolyn Cooley offered a director perspective, however, arguing that it was less expensive to pay for education now than to pay for prison one day.
"We are in the business of educating out students," she said. "This is where our focus should be."
School Director Sumner Nichols said he didn't completely accept the notion that a larger homestead exemption would fully mitigate the tax increase. Residents who don't own homes and don't receive the exemption could find themselves paying higher rent, he said.
Ultimately, only Harkins voted against the budget in a 7-1 vote. Director Lauren Gillespie was not at Friday's meeting.
Contact Jim Martin at jmartin@timesnews.com.
This article originally appeared on Erie Times-News: Erie PA school taxes to increase as state budget awaits approval
