(6/17) Fairfield Area School District residents may incur a 4 percent tax increase.
During May’s workshop, Business Manager Tim Stanton told the board of directors that a tax increase is necessary to keep pace with rising costs. Stanton referred to himself as a "fiscal conservative and taxpayer advocate" and acknowledged tax increases are rarely popular. If the board does not increase taxes, Stanton said, the district will struggle. The board is allowed to increase taxes 4.8 percent without seeking voter approval, Stanton said.
If the board approves Stanton’s proposal as presented, the average property owner’s tax bill will increase by about $72. The 4 percent tax increase will generate $385,000, Stanton said.
Stanton said he believes incremental tax increases are necessary every year to avoid a large increase after years of flat revenue. Stanton said he recommended no tax increase last year because he was new to the district and did not have a strong understanding of its budgetary needs.
Stanton said Fairfield Area School District has the lowest property tax millage rate in Adams County. The district will soon enter into negotiations with the teachers’ union and he suspects wage increases will be necessary to maintain high-quality educators.
"If you do not increase it something, how do you keep up with the wages?" Stanton asked.
Stanton also defended his proposal by explaining the need for a strong savings account. The district currently pays for three bonds that were opened prior to Stanton’s arrival and interest rates are an added cost that Stanton believes can be avoided in the future.
Some Fairfield Area School Board members expressed support for Stanton’s proposal while others noted public sentiment may not favor a tax increase.
"Pitch forks, man," a board member said when Board Vice President Jack Liller said he supported Stanton’s proposal.
"We want to keep putting stuff away so we don’t have to take another loan out," Liller said.
Stanton said he will present a budget at the next board meeting that shows no tax increase so board members can choose which proposal to approve.
"You can get yourself in a hole," Stanton warned.
He reiterated that Pennsylvania law prevents school boards from raising taxes above the Act 1 index, which varies from year to year.
"If you don’t keep up with Act 1 index, you cannot pay competitive wages," he said. "What are you going to tell teachers at negotiations? Four percent is not a significant amount per taxpayer."
He also noted the district budget relies on Elementary and Secondary School Emergency Relief funds that were distributed during the COVID-19 pandemic. Those funds will not be available next year so the district will be required to fund necessary programs such as Special Education through the general fund.
"There is no way the following year, you will be able to fund the budget," he said.
The board will continue discussing the budget at future meetings. Final approval is required by June 30.
