Crawford Central considers tax increases

VERNON TOWNSHIP — Multiple forms of tax increases appear headed for Crawford Central School District, but the absence of three of the board’s members from Monday’s work session adds uncertainty to the 2024-25 budget that will be up for approval next week.

Based on discussion among the six board members present, a property tax increase of approximately 3.5 percent appears likely. In addition, a majority of board members appeared ready not only to resurrect a per capita tax discontinued two years ago, but to double the previous rate.

District administrators proposed a 3.6 percent property tax increase, down from the 4.9 percent increase that was included last month in the preliminary budget approved in an 8-1 vote by the board.

The reduced hike came after additional cuts and revised revenue projections. Projected expenditures for 2024-25 are currently $70.6 million, Business Manager Austin Stofferahn told the board, down from $71.1 million last month. The reduction was achieved largely through the elimination of seven substitute teacher positions assigned to specific school buildings, the removal of a long-term substitute position, and a lowered estimate of the cost of elementary-level charter school funding.

Revenues are projected to be $67.5 million, leaving a $3.1 million deficit that would be eliminated using money from the district’s fund balance.

For owners of a home assessed at the district’s median assessed value of $30,000, the annual increase would be approximately $71, according to Superintendent Jenn Galdon.

A $61.98 increase in the homestead/farmstead exemption for next year would compensate for nearly the entire increase, resulting in a net annual increase of about $9 for the owner of a home assessed at the district’s median assessed value.

Homestead or farmstead exclusions, which apply only to primary residences, are available for most owner-occupied homes and farms, according to the Pennsylvania Department of Community and Economic Development, and are funded by state gaming revenue.

“If you break it down for a month, how much that is,” Galdon said of the increase, “like, if you go to Starbucks or Cup n’ Spoon?”

Board member Tammy Silvis remained skeptical about whether residents could afford the proposed increase.

“Within our households, we only have so much money to go around. I can’t go to my employer and say, ‘Listen, they’re raising school taxes — I need you to raise my high income.’ We have to cut back. And so if there’s any way to cut back anywhere, I suggest we do it.”

Additional cuts, Galdon replied, would have to target personnel in order to have much of an impact. Long-term planning is necessary to keep costs contained, she said, including consideration of closing some district schools in the face of declining enrollment.

“If we’re going to keep all of our buildings open,” she said, “we’re going to have to raise taxes.”

Board President Kevin Merritt proposed reinstituting the district’s per capita tax and using the resulting revenue to offset the proposed property tax increase. Board member Ron Irwin proposed not only bringing back the $5 tax on every adult resident of the district, but doubling it to $10, the maximum allowed.

Irwin also asked about the impending end to a significant portion of the district’s bond payments.

By 2025-26, a net cost of $3 million for bonds issued for the district’s last round of school building renovations will end, Stofferahn said.

“I just think people need a light at the end of the tunnel-type thing,” Irwin said. “I’m hearing that people are now skipping meals because they can’t afford to put food on the table and you’re telling them, you know, but we need more of that, more of the money that you don’t have.”

Irwin said he had also “heard more than once” of students leaving district schools for cyber-charter schools so that they would have more time to work jobs in order to help support their families.

Crawford Central discontinued its collection of per capita taxes in 2022. Stofferahn on Monday reiterated several of the reasons behind the move: Collecting the roughly $64,000 the tax produces each year is costly, labor intensive and inefficient. Far from being the universal alternative to property taxes, only about 55 percent of adults eligible for the tax typically pay it.

Nonetheless, Merritt, Irwin, Silvis, Ed Devore and Monica Hargenrater said they would support the per capita tax. Of the five, only Merritt was on the board in 2022 and he opposed the elimination of the per capita tax at the time.

Jan Feleppa said she was opposed. Board members Holly Chatman, Ryan Pickering and Jeff Rose did not attend the meeting.

All 500 of Pennsylvania’s school boards must approve a budget by June 30. Crawford Central School Board is expected to vote on a final version of the district’s 2024-25 budget when it meets next Monday at 5:30 p.m. in the Instructional Support Center, 11280 Mercer Pike.