ROARING SPRING — Attempting to balance a large deficit, Spring Cove School Board members voted to prepare budgets with no tax increase and with a 3% increase.

The discussion at Monday’s meeting followed business manager Steven Foor’s preliminary budget presentation on March 31.

As of now, the board is looking at a $1.4 million deficit, he said Monday. The district is projected to have total expenditures of $34,434,945 and total revenues of $32,409,826.

During the discussion, board member Kevin Smith handed out packets mapping out a financial outlook excluding a tax increase.

Foor reiterated that the district is currently seeing large increases in health care, retirement and cyber charter costs.

If they voted on a 3% tax increase, the district would receive an additional $330,000, he said.

Considering they still do not have a state budget, he said they have many unknowns in their own budget. Expenditures are easier to estimate, but he said they are more conservative with revenue.

“Because the last thing I want to do is project revenues to the board and come short there,” he said.

Looking at Foor’s projections, board President Amy Ackerman-Knisely said, “These are tough times that we need to navigate.”

Meanwhile, board member Troy Wright suggested a 3% tax increase to continue funding the bare minimum expenses in the district.

“Educate these kids in a safe environment and get them to graduate and get them in the workforce,” he said. “That’s our job.”

After a 10-minute recess, the board decided that Foor would map out two potential budgets, one with an increase and one without.

Discussing realty transfer tax

At the previous board meeting, board members discussed taking half of the realty transfer tax, but ultimately decided against it after more than five members opposed the idea.

Superintendent Betsy Baker said she reached out to local municipalities about the discussion, resulting in their presence at Monday night’s meeting.

During public comment, Roaring Spring Borough Council member Rodney Green encouraged the school board to reject collecting its share of the realty transfer tax.

He said he understands that the district is currently in a tough economic position, but taking half of the revenue the borough gains in taxes would have a significant impact.

“We’re not the same in all our budgets, but the real estate transfer tax is put in our budget every year,” he said. “And it’s something that we rely on as a source of revenue, and we don’t have that many to choose from.”

The district could take up to $214,173 in revenue, but he said that expense would affect the municipalities and their smaller budgets.

“I know you’re sharpening your pencils, you’re tightening your belts — we are, too,” he said.

Board member Samantha Snowberger agreed, saying some organizations may use that percentage for maintenance costs, which could make snow removal more tough and cause the district to cancel school.

“It might seem minuscule, but the impact is going to be huge,” she said.

According to Foor, 98% of Pennsylvania school districts collect their share of local revenue taxes. Only 2% of school districts do not collect their share.

“I really struggle with taking that money from them,” Acker-Knisely said.

And if the district decided to take that 0.5%, Baker said local municipalities would have needed to know before passing their budgets in January.

“They would really need a heads up a long time in advance to be able to prepare for that,” she said.

Board member Misti Fisher also said she’d like more information to make an informed decision.

At the end of the discussion, Wright said he believed it wasn’t fair to take money from the local municipalities, as they are also struggling financially.

“And they’re our neighbors, our community members,” he said. “We’re all in the same boat here, we’re just trying to figure out who should bail water.”

All school board members were present at Monday night’s meeting.

Mirror Staff Writer Colette Costlow is at 814-946-7414.