The Wilkes-Barre Area School Board has agreed on a budget for 2024-25 that not only avoids a tax increase, but could potentially lead to a tax decrease for homeowners if an innovative plan is successful. Superintendent Brian Costello stated that the budget anticipates revenue of $172 million, with spending expected to be about $433,480 less. The district aims to use this surplus, in addition to state funds, to lower property taxes through the Homestead Exemption program.
Under the law that legalized gambling, a portion of the proceeds are allocated by the state to reduce property taxes for homeowners and farmers. This is achieved by granting an exemption that lowers the owner’s assessed property value, thus reducing the amount paid in taxes.
Costello mentioned that the district believes it can lawfully add the surplus to the state funding for the exemption in the upcoming budget. He estimated that the state’s funds currently result in a 6-7% reduction for a home with the median assessed value of $75,200, and that incorporating the local surplus could increase the total reduction to around 11%. This reduction could benefit approximately 10,800 homeowners.
The concept is quite new, and the district is still ironing out details with the state. However, Costello anticipates that the tax reduction will be in place when property bills are issued this autumn. He mentioned that this fulfills a commitment made years ago to lower property taxes if state funding to the district increases sufficiently. Governor Josh Shapiro's proposed budget includes an additional $15 million for the district in 2024-25.
In addition to reducing taxes for homeowners, the district plans to use the extra funds to recruit up to 47 teachers and other staff to reduce class sizes in the elementary schools, as well as to double the number of new students enrolling in the district's STEM Academy annually from 20 to about 40. However, these initiatives could be adjusted and the number of new hires reduced if the state legislature cuts the proposed education spending increases by Governor Shapiro.
In other budget-related decisions, the board has approved the final settlement for the sale of the former Meyers High School, and new agreements with administrators, confidential secretaries, and custodial/maintenance staff.
The selling price for Meyers was $3.2 million, but the building required extensive repairs. As part of the agreement, the buyer will be responsible for a significant amount of the work before taking ownership, resulting in a reduction in the final payment to a little over $1 million for the property.
The agreements with the administration and custodial staff include 3% annual pay raises for the next four years. The secretary agreement increases starting salaries.
Costello also noted that the district is currently undertaking extensive renovations in all buildings except the new high school, including energy-efficient changes in lighting, HVAC, new ceilings and flooring, and new lockers, without the need for additional borrowing. The board has accumulated a capital projects fund adequate to cover the expenses, which are expected to be completed within the next two to three years.
One thing on the list was the endorsement of $557,149 in payments for some of the work that has already been done at the new stadium and athletic fields, Solomon Plains education complex, GAR Middle School and Kistler Elementary.
The largest payments were two checks to The Brewer Garrett Company for work at GAR/Kistler totaling $514,792 for HVAC and electrical work. McClure Company was paid $62,085 for similar work at Solomon Plains. The smallest payment was to Apollo Group, Inc. for the stadium project at $272.
The board also:
• Accepted the 2024-25 school calendar setting the first day for students on Sept. 5, and the last day/graduation on June 6, 2025.
• Approved an agreement with John McElwee to provide an internal Coach for special needs support classes and for Board Certified Behavioral Health consultation from July 1 of this year through June, 2025 at a cost of $125 per hour not to exceed $12,500 for the year.
• Approved an agreement with the Greater Wyoming Valley Area YMCA to enter the Power Scholars Academy Summer Program. The YMCA will provide educational services for up to 120 students in the district at the High School. Total cost to the district is up to $66,000.
• Approved the state-required yearly “single audit report” for the year ending June 30, 2023, carried out by Rainey & Rainey, Certified Public Accountants.
• Approved a contract with Green Valley Landscaping for various lawn maintenance services around the high school through October, 2025, at a total cost of $16,528.
• Approved an agreement with SMG (Mohegan Sun Arena at Casey Plaza) to host the high school graduation ceremony June 7.
• Approved an agreement with Matt Kester Productions LLC to provide the audio package, rigging, package and power distribution for graduation at $5,500.
• Renewed the All Access Package membership with the Pennsylvania School Boards Association for 2024-25 at a cost of $17,766.
• Renewed the agreement with Skyward, Inc. for various license fees, maintenance and data encryption for student data management systems at a total cost of $59,783 for the 2024-25 fiscal year.
