Quaker Valley School District property owners may be paying 3.9% more in real estate taxes next school year.
Board members voted 8-0 to pass the proposed 2025-26 budget on April 15. Board Vice President Daniela Helkowski was absent.
The budget is available for review on the district’s website as well as at the administrative office.
It will be up for final passage on May 19. State law requires school districts to approve a balanced budget by the end of June.
Projected revenues are listed at about $62.23 million while expected expenses are listed at about $63 million, leaving an estimated $770,000 shortfall.
Current millage is 21.2362 mills. The proposed hike of 0.8388 mills would raise the tax rate to 22.075 mills.
District Business Manager Brooke Baker said an owner of a property with an assessed value of $200,000 would see their tax bill go from about $4,247 a year to $4,414, up nearly $168.
She said the increased revenue from the tax hike is built into the budget, and the district may need to pull from its reserves to cover the projected shortfall.
The district’s tax hike limit is 4% under the state’s Act 1 index — a formula based on the inflation rate that limits property tax hikes without requiring voters’ approval.
Projected income includes about $41.5 million in real estate taxes, $10.6 million in state revenues, $6.3 million in Act 511 taxes (including earned income tax), $965,000 in earnings on investments and $494,000 from federal sources.
Projected spending includes about $32.5 million for instruction, including regular and special education; $19.8 million for support services, including pupil health, transportation, operation and maintenance; $6.47 million for debt service and $2.1 million on student activities and community services.
Baker said via email that there is little wiggle room for budget cuts.
“Approximately 67% of our budget is tied to contractual obligations, including salaries and benefits,” Baker said. “These are fixed costs that we must meet each year. Beyond that, we are also contending with rising utility expenses and inflationary pressures, which continue to drive up the cost of goods and services across the board.”
Lower assessments, less earned income tax
She also noted a drop in assessed property value in the district, as well as lower earned income tax collection.
“We are seeing slower growth compared to prior years,” Baker said. “While we experienced over a 4% increase in revenues during the past two budget cycles, the 2025–26 budget is only showing a 2.59% increase.
“This slowdown is largely due to a $13 million decline in assessed property value, which marks a shift from the steady growth we’ve historically seen.”
District director of communications Michelle Dietz said she believes multiple factors led to the assessed property decrease, but could not pinpoint any specific one.
Geoff Barnes, board member and finance committee chair, said after the board meeting he does not expect any major changes to the budget in the next month.
“I think we would have liked to have kept (the tax hike) smaller if we could of,” Barnes said. “This is what we had to do. We had a combination of cost increases and some revenue decreases to address. … The planning is done. The budget we introduced tonight is the one we will adopt.”
Superintendent Tammy Andreyko commended Baker’s efforts in helping to avoid any cuts in programs and services.
“I really think Brooke has done a wonderful job meeting with all of the (department) controllers, all of our principals to really talk about the initiatives for the year,” Andreyko said.
“She’s doing a lot of great long-term planning. She’s looking at curriculum cycles, what the needs will be over the long haul,” Andreyko said. “I really do think she is doing amazing work. The communication piece with our administrators has been very significant and very much appreciated.
“As far as the (tax) increase, we are doing our best to stay within all of the state limits for us and also make very wise decisions.”
Bigger than previous projections
The projected tax hike is bigger than the previous projected increase by former business manager Scott Antoline.
In September 2023, Antoline presented a financial plan of using tax hikes in future budgets to cover both general expenses and funding a proposed high school project.
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Antoline at the time estimated tax increases over the next five years would be between 3.4% and 2.9%, with 2% of that being annual hikes to just cover operational needs.
The district raised property taxes by 2.9% as part of this school year’s budget.
“While the proposed 3.9% increase is slightly above the 3.4% projected long-term plan, it’s important to understand that those projections were based on the financial data and trends available at that time,” Baker said.
The business manager explained the extra half percent was a sign of the times.
“In the year since those projections were presented, a few key variables have shifted,” Baker said. “We’ve seen an unexpected decrease of over $13 million in assessed property value, and earned income tax collections — historically a steady source of growth — have not increased at the same pace. These two areas make up the largest portion of our local revenue and are critical to our budgeting outlook.”
Baker reiterated the increases in contracts, inflation, utilities and other fixed costs while addressing the previous outlook.
”In that context, the current budget is still aligned with the intent and structure of the original plan, though it reflects the realities of today’s financial environment,” Baker said.