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McGuffey could raise millage by 5% under state adjusted index; district estimates ~$650,000 in additional revenue

McGuffey School District Board of Directors · October 17, 2024
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Summary

District staff said Pennsylvania's adjusted index for McGuffey is 5%, which would let the district raise its millage from 13.93 to about 14.62 without a referendum; staff estimated roughly $650,000 in additional revenue based on the district's assessed value of about $950 million and flagged a December decision deadline on exceptions.

District staff presented the Pennsylvania Department of Education's budget timeline and explained how the state's base and adjusted indices affect local millage limits.

Miss Badillion, who reviewed the PDE timeline, said, "For McGuffey, our adjusted index is now 5%." She explained that the adjusted index is calculated using market value, personal income aid ratio and 75% of the base rate. "This 5% increase would take our millage rate, which is currently 13.93, to 14.62," she said, adding that using the district's assessed property value of approximately $950,000,000 would generate approximately $650,000 in additional tax revenue.

Staff warned the board that the next formal decision point will fall at a December PDE deadline about whether to request referendum exceptions to increase millage beyond the adjusted index. The administration also flagged rising health care premium forecasts (an estimated 5–6% increase from the district's health care consortium), which will factor into the 2025–26 budget outlook.

Why this matters: an increase in millage rates affects property taxpayers and the district's operating revenue; choosing to raise the millage up to the adjusted index is a local financing decision constrained by state timelines and notice requirements.

Next steps: administration will continue forecasting expenses and health‑insurance impacts and will brief the board before the December deadline on whether the district will seek exceptions or plan within the 5% adjusted index.