Harrisburg School Board adopts 2025–26 budget, raises millage 0.62 mills amid state funding uncertainty

The Harrisburg City School District board adopted its 2025–26 final general fund budget — $213,124,370 — and approved a millage rate of 31.4 mills (an increase of 0.62 mills, or 2.01%) at its June 24 meeting after a prolonged presentation and debate about state revenue assumptions.

The district’s budget presentation was delivered by Dr. Marcia Stokes, who walked board members through changes since the May proposal, including an unexpected $1.5 million increase in federal Title I funding and a $50,000 reimbursement from the Pennsylvania Department of Education (PDE) for technical support. Stokes told the board she had adjusted property tax revenue to reflect seven assessment appeal settlements and a certified decline in assessed value of $121 million (a 7.53% drop), and recommended the modest millage increase to preserve long‑term stability while relying partially on anticipated state aid.

Why it matters

Harrisburg depends heavily on state aid; Stokes said state sources represent roughly two‑thirds of the district’s revenues. Board discussion focused on how much of the governor’s proposed increases the district could safely count on when the Commonwealth’s budget had not been finalized. The board also considered the district’s budgetary reserve — about $4.04 million — and the exit‑from‑receivership five‑year projections prepared by Public Financial Management (PFM) at PDE’s direction.

Key points from the presentation and debate

- Millage and totals: Stokes presented a final mill rate of 31.4 mills (a 0.62‑mill/2.01% increase). The adopted final general fund budget is $213,124,370. She said the Title I increase allowed modest expansion of some positions and an additional $500,000 transfer to capital reserve.

- Assessed value decline: The budget reflects a $121 million, or 7.53%, reduction in certified taxable assessed value (May 15 certification), producing roughly $2.8 million less in local revenue even after the millage increase.

- State and federal assumptions: Stokes said she was assuming receipt of 50% of the governor’s proposed “adequacy supplement” tied to the fair‑funding litigation and noted uncertainty because the Commonwealth had not passed a budget. She also noted the end of ESSER funds and a large, recent uptick in federal Title funding.

- PFM and PDE cautions: Dr. Lori Suske, the PDE official serving as chief recovery officer for the district, and PFM’s exit‑report modeling recommended higher recurring tax increases to maintain five‑year balance. Suske said the exit projections had assumed a higher tax path (previously shown as 4.81%, later re‑run to 6.3% after assessment settlements) and warned that a smaller local increase shifts more long‑term risk to the district.

- Budgetary reserve and contingency: Stokes described the $4,044,516 budgetary reserve (function code 5,900) as an in‑budget contingency to be used if state allocations fall short. She said the administration had taken a conservative approach and would not immediately cut positions if revenue assumptions are not met.

Votes at a glance

- Millage resolution (2025–26): Adopted. Motion and roll call adopted the mill rate at 31.4 mills (0.62‑mill increase/2.01%). Roll call recorded all board members present voting yes. (Roll call recorded at meeting.)

- Final general fund budget (2025–26): Adopted. $213,124,370. Roll call recorded all board members present voting yes. (Roll call recorded at meeting.)

- Capital plan (2025–26): Adopted. Board approved a capital plan budget of $6,213,360.72 (some items contingent on grant funding). The plan itself does not obligate immediate expenditure of every listed item; individual contracts will be brought back for approval.

What the board approved and next steps

The board voted on the millage resolution and then adopted the district’s final general fund and capital plan. Adminstration will post final budget documents and proceed with separate procurement and contract actions for capital items that proceed. PFM will rerun five‑year projections in the fall once actual Commonwealth allocations are known.

Ending

Board members said they would continue to monitor state budget actions and update five‑year forecasts in the fall; administration said it had budgetary reserves and would avoid immediate staffing cuts if state revenues fall short. The board’s action required formal roll call votes that were completed at the June 24 meeting.