Central York SD proposes 3% tax increase, adds insurance cost to 2025-26 budget

Central York SD officials proposed a 3% real-estate tax increase that would set the millage at 23.4271 as part of a draft 2025-26 general fund budget the board will consider for final approval next week.

The proposal, presented by Miss Martin, district staff member, would keep transfer and earned-income taxes unchanged and ask the board next week to adopt a homestead and farmstead exclusion resolution. "We are still asking for a 3% tax rate, which would bring our millage up to 23.4271," Miss Martin said during the planning meeting.

The budget presentation gave context for the request: federal ESSER pandemic funds and large debt-service payments in prior years changed the district's revenue picture, Miss Martin said. The district received about $9.6 million in ESSER funds and previously faced debt-service payments of roughly $7.6 million and $6.5 million in prior years, she said; those one-time revenue and expense shifts affect the baseline for ongoing operating costs. For 2024-25 the projection showed an increase to fund balance of more than $4 million; the proposed 2025-26 budget projects a smaller increase to fund balance, roughly $2.8 million.

Miss Martin described recent assessed-value estimates from the county that increase real-estate tax revenue: at the proposed 3% rate the additional assessed value yields about $536,000 more in revenue than previously estimated, and even with a 0% tax change the district would realize roughly $2 million more in real-estate revenue because assessed values rose. She said 16% of the assessed-value increase is tied to LERTA agreements now on the district's rolls.

The presentation itemized expense changes the budget must cover. The district will add another special education classroom for 2025-26 at Hayshire — one teacher and two support aides — accounting for about $213,000 in new salary and benefit costs. Miss Martin also described rising substitute and class-coverage costs and an increase in security-camera replacement and other security budget items.

A major new cost driver is property insurance: Miss Martin told the board that "property insurance rates have increased about 40% over last year." She said an updated property appraisal raised insured values by about $12.5 million, and a recent run of storm-related claims in the region narrowed the market of insurers willing to quote. Only Utica provided a quote, and Utica asked to raise the district's property deductible from $5,000 to $25,000. Miss Martin said the total year cost for the district insurance package would be $321,991, and that the district's broker, Assured Partners, is joining with Gallagher to pursue broader markets next year.

Miss Martin also noted state-level uncertainty: House Bill 1500 (cyber funding) has passed the state House and would establish a set cyber rate of $8,000 per regular-ed student that could reduce district expenses by about $750,000 if it becomes law; the bill still needed Senate action at the time of the meeting.

Board members asked for follow-up details on items such as substitute usage and the assessed-value updates. Miss Martin said she would return with a year-end review and additional clarifying figures at the next meeting.

The board did not take a final vote on the budget at the planning meeting; Miss Martin said the district will return to the board for formal adoption at the regular meeting on June 16, 2025.

What happens next: the 2025-26 budget, the homestead/farmstead exclusion resolution and the insurance renewal were placed on the June 16 agenda for board action. The district will also monitor state budget and legislation that could materially change revenues and expenses in 2026 and beyond.