Saint Marys Area SD proposes 1.75-mill real estate tax increase to narrow projected deficit

The Saint Marys Area School District on April 14 presented an updated 2025-26 general fund budget that includes a proposed real estate tax increase of 1.75 mills intended to reduce a projected shortfall and address rising special education and health‑care costs.

In a presentation to the board, the district’s budget presenter said the revised proposal raises projected revenues to about $37.7 million and increases proposed expenditures to about $38.3 million, reducing the amount the district would need to draw from reserves by an estimated $386,000 compared with the prior draft. The presenter said the change in revenue includes roughly $528,000 from the proposed mill increase and roughly $335,000 in additional grant and donation funding.

“As we continue to analyze the needs of the district, we're recommending to update the budget to include a 1.75 mill tax increase,” the budget presenter said during the meeting.

Superintendent Dr. Ramsey told the board the increase was intended to be moderate. “We felt that 1.75 was as moderate as we could be,” he said, adding the district will continue seeking grants and other cost savings.

Why it matters: District officials said the bulk of recent local tax increases has been absorbed by health insurance, special education and retirement costs that are largely outside local control. The presentation showed real estate tax mills have risen over the last several years and that special education enrollment and costs have increased substantially since 2014–15.

Key components cited by district staff include: - Projected total revenues (updated): approximately $37,700,000. - Projected total expenditures (updated): approximately $38,300,000. - Estimated additional revenue tied to the mill increase: about $528,000. - Additional grant/donation revenue cited in the presentation: roughly $335,000 (agriculture donations and a competitive grant). - Special education contingencies added to the budget: roughly $442,000. - One-time items in the draft: math curriculum and a vehicle purchase (combined cited at about $255,000).

District staff and the superintendent emphasized several capital and operating pressures the budget aims to address, including a failing school vehicle that must be replaced, increased off‑campus special education placements that add tuition and transportation, and pavement and roof needs across the district. Dr. Ramsey said paving has surfaced as a more immediate facilities priority than roof work for the coming year, though roof work remains a longer‑term need.

Board members asked clarifying questions about specific line items, such as the second vehicle purchase and the special education contingency. The superintendent said the district will continue pursuing competitive grant funding and that a final general fund budget recommendation will be brought to the board for approval in May.

Next steps: The board will receive the final general fund budget for a vote in May; staff said figures could still change as grant awards and other items are finalized.