CASD passes 2024-25 proposed budget with tax increase and $2.6M deficit, sort of

The Chambersburg Area school board voted unanimously Tuesday to pass the approximately $188 million proposed budget for 2024-25.

Here are some key things to know about it.

There's a $2.6 million deficit - but not really

The district estimates it will spend $188,014,869 and bring in $185,371,383, meaning a deficit of $2,643,486 is projected.

That "looks hideous," board member Stephanie Harbaugh said, but the district could end up with a surplus.

Gov. Josh Shapiro's proposed 2024-25 budget includes an increase of over $1 billion in basic education funding, according to the Department of Education. That increase includes $8.5 million more in state funding for CASD, said business manager Tammy Stouffer.

The business office built the budget based on state funding being the same level as this year, about $58.3 million, according to the proposed budget. About half of that comes from the basic education funding formula.

"The last three years have been unprecedented in terms of the governor's proposed budget and increases to districts that -- we're very conservative people, the business managers fo the school district -- so to plan on $8.5 million, if we only get a third of that, that could create another problem," Stouffer said.

Harbaugh said several constituents asked her about the budgeted deficit in the weeks since the preliminary budget was released. She brought up the topic Tuesday to help taxpayers understand that there will not likely be a deficit, or at least one as big.

The district maintains a $5 million budgetary reserve that can be used if there is a deficit, but Stouffer said she is confident the district will not have an actual $2 million deficit.

"I think we will get something," she said.

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Taxes will go up 4%

The tax rate will go up to 132.4931 mills assuming the proposed budget passes. The current mill rate is 127.3972.

The district expects to receive $85,792,482 from property taxes. That includes about $14 million in homestead/farmstead exclusions.

One mill is equal to $1 in property tax levied per $1,000 of a property's assessed value (not market value).

The increase is under the Act 1 Index of 7%, which is the maximum tax increase school districts can impose without requesting an exception.

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Superintendent 'excited about the future'

The proposed 2024-25 budget is "more stable and sustainable" for the district's programs, Superintendent Chris Bigger said.

He said the budget includes more money for English language learners, which is a growing demographic. In his "state of the district" study, presented to the board in March, Bigger noted that the number of English language learners increased by 158% from 2015 to 223.

Funding is also increased for special education. The portion of special education students in the district increased from 11% to 16% in eight years.

"We're excited about the future, but this is a stable and sustainable budget for English language learners and special education," Bigger said.

CASD could benefit in the future from efforts in the state legislature to rework the basic education funding formula and the cyber charter tuition setup; the district would see more state funding, yet would have to pay less to cyber charter schools for each district student who attends one. That could mean a lower tax burden, Bigger said.

"It would benefit Chambersburg school district tremendously with some significant dollars that we could then apply to our educational blueprint in the future. So there's some hope, there's some change at the state that could really benefit us."

When will the board vote on the final budget?

The school board will vote on the final budget at its regular meeting on June 4. It will begin at 7 p.m. in the Chambersburg Area School District Administration Building. Meetings are also streamed on the district's YouTube channel.

The proposed budget is available on casdonline.org.

Amber South can be reached at asouth@publicopinionnews.com.

This article originally appeared on Chambersburg Public Opinion: CASD 2024-25 budget: $2.6M deficit expected to go away