School District updates budget with reduced tax increase to 3.83%

In the quiet confines of the Middletown Area School District's boardroom, members gathered on June 24, 2025, to discuss the latest updates on the district's budget, a topic that resonates deeply with the community. The meeting revealed significant adjustments to the financial plan, reflecting both challenges and strategic decisions that will shape the educational landscape for the coming year.

The board presented a revised budget that now totals $64.8 million in expenditures, a slight decrease of $76,000 from the previous draft. This adjustment comes alongside a reduction in anticipated revenue, which has dipped by approximately $41,000. Notably, the reliance on the fund balance has been minimized, with no additional fund balance use required to balance the budget. This prudent approach has led to a revised tax increase of 3.83%, down from the previously proposed 5.1%. For homeowners, this translates to an increase of $95 per $100,000 of assessed value, a decrease from the earlier estimate of $126.

The budget discussions highlighted a few key areas of change. Salaries saw a reduction due to the elimination of two full-time equivalent (FTE) positions, one of which was a nursing role that could not be filled, and the other a paraprofessional position that was absorbed into existing staffing. Benefits costs also decreased by $117,000, attributed to changes in open enrollment and the reduction in staff. However, there was a slight increase in service costs, reflecting a growing need for educational services.

The board also addressed the district's assessed value, which has seen a decline of $1.4 million due to tax appeal settlements. This marks the second consecutive year of stagnation in assessed value growth, a trend that could have long-term implications for district funding.

On the revenue side, federal allocations increased by $49,000, primarily from Title I and II funding, while state funding rose by $67,000 due to finalized Safe Schools grant allocations. However, local revenue faced a significant decrease of $157,000, largely due to a drop in real estate taxes linked to the reduced assessed value and a lower tax rate.

As the meeting concluded, board members reflected on the importance of maintaining fiscal responsibility while ensuring that educational needs are met. The adjustments made to the budget not only aim to alleviate the financial burden on taxpayers but also strive to provide a stable environment for students and staff alike. The community will be watching closely as these decisions unfold, eager to see how they will impact the future of education in Middletown.