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HASB budget, tax rate still fluid

HOLLIDAYSBURG — The Hollidaysburg Area School District administration presented the school board with a proposed $51 million 2019-20 budget that has a $1.8 million deficit.

A few more meetings over the next 30 days will be wrought with discussion on where to find money to bridge that gap.

The board voted Wednesday to display the budget for public review online and at the administration building, 405 Clark St. The version of the budget that will be on public display does not include a tax increase, but that could change before the final adoption of the budget June 12.

The budget on display shows what it would look like without a tax increase — if the district’s reserves were used to address the entire $1.8 million deficit.

In the budget is a $528,000, or a 2.4 percent, increase to salaries as well as increases for state-mandated expenses including retirement system contributions (a $393,000 increase over last year).

Cyber charter tuition comprises more than $700,000 from the budget.

School Board President Ron Sommer said it’s likely that the board will raise taxes.

“I don’t see where we can cut a whole lot. There’s no fat left, with all the government mandates,” he said.

By a state formula calculated annually, the district can’t raise millage more than 0.2577 mills or just over a quarter of a mill, business manager Susan Baker said.

“It sounds small, but it would generate $600,000 on real estate tax bills … and there would still be a significant deficit,” she said.

Baker did not have a calculation Wednesday of how the maximum potential 0.2577-mill increase would affect the average assessed property.

Adding to pressure to increase taxes are needs of the local library, which were brought before the board.

Hollidaysburg Public Library board member Jim Gehret addressed the school board Wednesday to request an increase in the tax millage designated to the library. The request was made last year, but the board unanimously declined it because it did not want to raise taxes at all.

Gehret asked for what he said was a minimal increase. By doubling the millage designated for the library, the result would have minimal taxpayer impact, he said. For example, it would be a $3 tax bill increase to people who own property with an assessed value of $200,000.

“The library is important to all the community,” he said. “A raise in millage would prevent postponing repairs.”

Gehret said fundraisers to help cash flow have reaped little reward, and state funding for the library has plateaued.

“Granting our request would be able to support us for years to come,” he said.

Hollidaysburg Area has three more meetings before final budget passage on June 12. The board’s meeting schedule is 7 p.m. May 15,

6 p.m May 29 and 6 p.m. June 5. All meetings are in the senior high school library.

Mirror Staff Writer Russ O’Reilly is at 946-7435.

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