School District plans 3% tax increase for 2025 amid rising mandated costs

The Boyertown Area School Board Committee of the Whole convened on April 8, 2025, to discuss the district's real estate tax history, budget proposals, and mandated costs impacting the upcoming fiscal year. The meeting provided a comprehensive overview of the district's financial landscape and future projections.

The discussion began with a review of the Act 1 index, which sets limits on tax increases for school districts. The district's tax increases over the past several years were highlighted, showing a consistent 3% increase since the 2021-2022 school year, despite the Act 1 index allowing for higher rates. The most recent tax increase for the 2024-2025 year resulted in a millage rate of 31.738, translating to a tax bill of approximately $4,583.74 for properties assessed at $150,000 after applying the Homestead Farmstead relief.

The meeting also addressed the collection rates for real estate taxes, which have remained strong, with a collection percentage of 98% reported for the 2024-2025 fiscal year. The district anticipates receiving updated figures for Homestead Farmstead relief from the state in May, which will further inform tax relief calculations for eligible properties.

In terms of budget planning for the 2025-2026 school year, the district is proposing another 3% tax increase, aligning with trends observed in neighboring districts. The committee noted that mandated costs, such as contributions to the Public School Employees' Retirement System (PSERS) and charter school tuition, have significantly impacted the budget. The PSERS contribution rate is projected to remain at 34%, while charter school tuition costs have risen by 28% since the 2019-2020 school year.

The proposed budget for 2025-2026 includes local revenue from the tax increase, totaling approximately $4.25 million, alongside state revenue of about $43.6 million and federal revenue of $867,154, culminating in a total budgeted revenue of approximately $148.75 million. Notably, the budget incorporates an increase in the Ready to Learn grant proposed by Governor Shapiro, although no charter school reimbursement is anticipated for the upcoming year.

The meeting concluded with a commitment to share further details regarding the Homestead Farmstead relief and ongoing budget discussions as they develop. The committee's focus on fiscal responsibility and transparency reflects the district's dedication to maintaining strong community support while navigating financial challenges.