Harrisburg City SD presents $211.8 million proposed final budget, recommends 2% mill increase amid receivership exit debate

HARRISBURG, Pa. — The Harrisburg City School District on Tuesday presented a proposed final budget of $211,828,370 for fiscal 2025–26 and recommended a 2% tax increase — reported in the presentation as a 0.62‑mill raise — even as outside consultants have advised a larger sustained increase to meet five‑year fiscal projections tied to an exit from receivership.

District Chief Financial Officer Dr. Marcia Stokes said the proposal reduces total spending by about $5.4 million (2.55%) from the current year, largely because one‑time federal ESSER pandemic funds ended, and that 66% of district revenue is still projected to come from state subsidies. “You can see that this proposed final budget has a 2% or 6.62 mil increase,” Stokes told the board, adding the proposal includes conservative assumptions about state supplements and places some contingency in the budgetary reserve.

Why it matters: Harrisburg remains under a receivership exit petition with the Pennsylvania Department of Education; PDE and the district’s outside financial advisers, Public Financial Management (PFM), are assessing whether local effort and multi‑year revenue projections are sufficient for the district to return to local control. PFM’s five‑year stress test recommended a 4.81% increase to achieve balanced baseline projections without relying on uncertain state supplemental funding. Board members and the receiver said that choice — more immediate local tax revenue versus reliance on state actions — is central to whether Harrisburg can secure and sustain an exit from receivership.

Topline numbers and assumptions

- Proposed final budget: $211,828,370. - Recommended local tax action in the presented proposal: 2% mill increase (0.62 mills). - PFM “exit” scenario presented during prior training: 4.81% (PFM projection…