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Scranton board adopts $225.7 million 2025 budget, keeps tax rate unchanged

Scranton School Board · December 9, 2024
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Summary

The Scranton School Board voted Dec. 9 to adopt a $225,671,321 budget for 2025 with no tax increase, approved a package of local tax levies and related financial resolutions, and debated the long-term sustainability of a 0% millage increase amid large capital needs.

The Scranton School Board on Dec. 9 approved a $225,671,321 budget for 2025 that uses reserves and leaves the district—s tax rate unchanged. The roll-call vote passed after directors debated the implications of relying on state funding and fund balances rather than raising millage.

Board members described the budget as the product of central administration—s work with the chief financial recovery officer and said recent state funding helped avoid a tax increase. Some directors warned the district still faces substantial capital needs and long-term debt, noting building repairs and outstanding obligations that will require ongoing monitoring.

The board also approved a set of related financial resolutions required for 2025 tax administration: continuation of a 1% earned income tax (estimated financial impact $14,650,000), a $5 occupation privilege/local service tax (estimated $165,000), a one-half of 1% realty transfer tax (estimated $1,200,000) and a payroll preparation tax (full levy presented as $7,300,000, with 2024 estimated collections of $4,244,713). Directors voted to designate tax collectors, payroll collection agents and depositories per the attached resolutions.

Administration highlighted the district—s near-term financial position, including a growing general fund balance and a budget reserve that officials said supports holding the line on taxes this year. Several speakers cautioned that the district still faces long-term obligations: one director cited roughly $300 million in debt and an estimated $400 million in building repairs previously identified by district studies.

The board took the budget vote following public and internal discussion and approved the package on roll call. Recorded votes for the budget resolution were 7 in favor and 1 opposed. Separate roll-call tallies for each levy and appointment were recorded during the meeting.

The board said it will monitor revenue trends and capital needs going forward; officials noted that state funding increases were a significant factor in the decision and that administrators will return with additional information as needed.