HASD mulls tax hike to close deficit

Gildea suggests increase to counter $3 million shortfall in proposed budget

HOLLIDAYSBURG -- Superintendent Robert Gildea suggested the Hollidaysburg Area School Board raise the property tax to the Act 1 index of 5% to help close the more than $3 million deficit in the proposed 2023-24 district budget at Wednesday's meeting.

The board approved the first draft of the budget at its previous meeting on May 10, with board members Jennifer Costanza and Carmen Bilek voting against the proposal because of the severe deficit.

Gildea said the administration had explored possible options to close the gap in hopes of avoiding a tax hike, but he said there wasn't an alternative without starting to cut school programs and activities.

"The fat's been trimmed over the last 10 years," Gildea said. "We're at the point now where it's very dire."

Gildea said Hollidaysburg is one of the most efficient districts in the state in terms of per student expenditures, but that combined with the lack of a significant tax increase over the last several years has made the state think that Hollidaysburg has more money than it does in reality.

"We're being dinged for being efficient, and that has to change," Gildea said. "There's no irresponsible spending within the district."

Gildea said in order for there to be lasting relief in the district without raising taxes, the state system of determining funding needs to change. He has been speaking with local lawmakers and petitioning them to take a look at the current model and figure out ways to make it more balanced.

Gildea said he has spoken with state Sen. Judy Ward, R-Blair, and most recently spoke with state Rep. Jim Gregory, R-Hollidaysburg, on Tuesday.

So far, though, no progress has been made.

Board member Kenneth Snyder said he had "no interest in raising taxes. Zero." But he admitted he didn't know what an alternative would be to help fix the deficit.

Snyder said it wouldn't be fair to raise taxes by a certain percentage when the average market value of homes is skewed because of the mansion-esque residences of a few families within the district. He said he personally knew people on fixed incomes who could not afford to pay a higher tax rate.

"There has to be some kind of exemption for (the state funding formula)," Snyder said.

Gildea said that many districts across the state, including Hollidaysburg, were able to bandage the wound with the federal ESSER funds they were granted under the American Rescue Plan, but Gildea said those funds are running out and the money needs to be spent by the beginning of the 2024-25 school year.

"No one likes increasing taxes, but our expenses are going up," Gildea said.

The district gave the board a snapshot of what a balanced budget could look like in November, and Bilek requested that an updated, more detailed version of that budget be given to the board to see what could be done. Gildea asked all the members to look at the numbers before the May 24 meeting to bring any proposals or ideas to the table for discussion.

"The sooner, the better" for any changes to the budget, Gildea said.

Mirror Staff Writer Nate Powles is at 814-946-7466.