JEFFERSON TWP — Knoch school board members are discussing a 2-mill property tax increase for the 2024-25 school year.

The increase is recommended by Knoch School District administrators due to a budget deficit, superintendent David Foley and business manager Jamie Van Lenten said at a meeting Wednesday, May 1.

The proposed increase would equate to an additional cost of $33.74 for the average homeowner in the district, Foley said. It would raise the millage rate from 94.275 to 96.275.

The district has not raised taxes since 2017, when it enacted a 1 mill increase, board president Donna Eakin said.

Without a tax increase, the district projects a deficit of $593,993, which is lower than an earlier projection of a $940,000 loss. Van Lenten explained during the meeting that by making adjustments to certain expenses, including decreasing IT maintenance costs, and pushing back the purchase of a language arts online resource, the district was able to cut into the initial estimated deficit.

A tax increase of 2 mills would add $362,000 to the revenue, further shrinking the deficit to about $232,000.

“It’s enough to keep us afloat as we consider other resources of revenue,” Van Lenten said.

The deficit is unrelated to the district’s $30 million high school renovation project, which does not affect the general budget, Foley and Eakin said.

“I want to ensure the public understands that this deficit is in no way connected to the construction project,” Foley said in a news release. “The district has a 30-year bond for the project. All debt service payments within the district equate to approximately 4% of the district’s budget. This percentage is consistent with the district’s approach to debt service in the past.”

Wednesday evening, Foley said the school board anticipated the costs associated with the bond payments. It did not, however, anticipate an increase of 13.68%, or $489,000, in insurance payments to its health care consortium.

In April, Van Lenten told board members that insurance claims have gone up since the COVID-19 pandemic.

Medicare funding decreases, premium rates and the price of prescription drugs not covered by insurance have also contributed to insurance costs.

During her presentation Wednesday, Van Lenten said the tax increase is not unlike that of other districts, like Mars Area School District, Freeport Area School District and Seneca Valley School District, which have raised taxes over the past few years.

Board director Justin Kovach expressed concern over raising taxes for the 2024-25 school year.

“I don’t want what happened to other districts, like Freeport, with a 6-mill increase last year, to happen here,” he said.

“I’m perfectly fine with toeing the line (this year) and seeing what happens,” he said. “We have some financial (leeway).”

“I’m a huge proponent of not raising taxes,” Eakin said. “But it’s not something we can refrain from doing forever.”

Board members will vote on the proposed, preliminary budget, including the 2-mill increase, next week. The finalized budget will be voted on in June.