Spring Cove School District mulls tax hike

Increase to 7.2% considered as part of budget proposal

ROARING SPRING -- The Spring Cove School District could increase taxes to the Act 1 Index of 7.2%, which would cost the average district homeowner about $119 more a year and generate about $815,000 in additional revenue, according to a proposed preliminary 2024-25 budget presented Wednesday evening.

District Business Manager Steven Foor went over the proposed budget during the school board's annual finance and legal committee meeting.

However, Foor recommended that the board only increase taxes by 3.6%, which would cost about $57 more a year and generate about $407,000 in additional revenue.

"That would be our recommendation at this point, at this juncture, right now," Foor said.

The 3.6% increase would be a 0.4049 millage increase, bringing the district's total millage rate to 11.6555 mills.

The budget's expenditure's section showed an estimated $800,929, or 2.61%, increase in expenses over the 2023-24 school year. Making up almost 62% of the budget's expenses are employee salaries and benefits, costing $11,705,209 and $7,755,881, respectively. Total expenditures for the 2024-25 school year are an estimated $31,456,251, according to Foor.

With estimated local revenue of $13,034,757, state revenue of $15,200,235 and federal revenue of $599,066 bringing total district revenue to $28,834,058, Foor said there would be a deficit of $2,355,695.

By using $600,000 in budgetary reserves, that deficit would be brought down to $1,755,695, Foor said.

Troy Wright, board president and committee member, commented that they don't want to go "five years with no tax increase and then hit people with a 6 or 7.2% (increase) either."

"Like, let's do 2, or 3, and then we do nothing, nothing, 2, or 3, instead of all at once," Wright said. "Then we're like 'man, we're desperate.'"

Foor agreed, saying they can "kick the can down the road" but that it would hurt in the long run.

"Then you're looking down here like, man, now we've got to do 6%, and then it's not even going to be that," Foor said. "I don't think it'll be this high again."

Prior to closing the meeting, Foor stressed that the budget is preliminary and that "a lot can change" including "any tax implications."

According to a timeline of events within the presentation, the proposed final budget will be presented and possibly adopted during the school board's May 13 meeting, after which it will be available for public viewing for 30 days. The deadline for public notice of intent to adopt the 2024-25 final budget is June 7, which is the required 10 days notice prior to the board's June 17 meeting. The final budget could then be adopted at that meeting.

Mirror Staff Writer Rachel Foor is at 814-946-7458.