Montoursville board adopts 2025–26 budget after amending to no-tax-increase option

The Montoursville Area School Board on June 10 approved a $35,794,852 general fund budget for the 2025–26 fiscal year after amending the proposal to remove the planned tax increase and set the tax rate at 17.09.

Board President (Mr. Gardner) said the amendment reflected trustee concern about using reserves and followed presentation by the business manager showing the district’s fund balance and budget scenarios. The business manager presented figures showing about $3.6 million in unassigned fund balance; a no-tax-increase scenario would require using $198,391 from that balance, while a modest millage scenario reduced the immediate draw to about $55,391.

The budget presentation noted an overall proposed total of $35,794,852, changes to local assessment-driven revenue (+$36,000), and small reductions in state revenue and FICA-related receipts driven by staffing and step changes. Administrators said some of this revenue gain was a one-time reporting effect tied to a new processing arrangement for earned income tax.

Trustees debated whether to pursue a millage increase. Several trustees said they could not justify raising taxes given the fund balance and recent cost reductions; others commended administration for controlling costs and presented the board with the option to start at a higher proposed rate and reduce it. After discussion, trustees amended the original motion to adopt the budget at a tax rate described by the business manager as 17.09 and voted to approve the amendment in a roll-call vote; the recorded members answering in the roll call were Badger, Eisenhower, Gardner, Hausnick, McCoy, Meyer, Oberheim and Young, each recorded as voting yes.

In related business the board approved the 2025 homestead and farmstead exclusion resolution at the amended rate, a list of financial depositories for 2025–26 (one abstention was recorded), and the bank signatories for district accounts. The business manager told the board she could resubmit the PDE documents with the no-increase option if trustees confirmed the direction.

Public commenters had urged trustees to avoid a tax increase while questioning a separate agenda item that would allow district employees’ children who live outside the district to attend tuition-free; trustees said that item had been combined for approval (agenda items 10.1 and 10.2) and was handled earlier in the meeting.

The board also approved routine business during the meeting, including treasurer’s reports, budgetary transfers, a listing of invoices, personnel additions and resignations, and a transportation bus-aide appointment. The meeting adjourned with the next regular meeting set for July 15.

Votes at a glance: The amendment to adopt the 2025–26 general fund budget at a no-tax-increase rate (17.09) passed via roll-call with the listed trustees voting yes. The homestead and farmstead exclusion resolution, depositories list and bank signatories were approved by voice vote (one abstention recorded on depositories).