ADAMS TWP — Mars Area School District’s proposed 2025-26 budget would see expenditures and expected revenue both at $65,399,802, with millage slated at 110 mills, up from 109 this current year.

The proposed budget was approved to go to public inspection at the school board’s Tuesday, May 6 meeting, and will be up for vote next month.

Under the current proposal, actual revenue is slightly less, but the district plans to spend about $1.4 million from its existing fund balance to balance the budget.

The proposal would mark the third straight year the district has increased taxes.

With one member absent, the school board voted 6-2 in favor of moving the budget proposal to the next stage, where it will be put on the district website for the public to review. Board members John Kennedy and Aaron Rose voted against the budget.

“The board has always found a way to balance the budget, and not increase taxes, so we are not in a unique time. A third tax increase in a row, not something I’ll vote for, and hopefully between now and when we pass the final budget we can find a way to not pass on a deficit to the taxpayer,” Rose said.

Expenditures in the current proposal are largely made up of salary and benefits payments for faculty. Slightly over $45.6 million, or 69.7%, of budget expenditures, would go to these two categories, and $27.2 million of that is for salaries.

Health insurance makes up nearly $6.4 million of spending, an increase that is due to insurance premium rates increasing by 24.82%, according to the district.

Debt service payments make up another 10.2% of expenditures, while various purchased services make up another 10.7%.

Debbie Brandstetter, the district’s business manager, said part of the debt service payments will eventually go toward a second bond issue for the ongoing elementary school renovation project.

A sticking point at the meeting was tuition payments for in-district students attending cyber charter schools: $1.442 million, about 2.2% of spending, would go toward these students. In Pennsylvania, public schools are mandated to pay tuition for students within their district who attend the charter schools.

Under the current proposal, $34.2 million, about 53% of revenue, would come from real estate taxes and interim taxes. Earned income tax would bring in $8.27 million. Local sources would deliver 73.19% of revenues under the proposal.

For every $1,000 in assessment value, a one mill increase would equal $1 in additional real estate tax.

“The last two years we did have tax increases. We’ve had a lot of staff that was added due to the growth of the community, we’ve had to add 27 positions over the last couple of years. So that was driving a lot of that,” Brandstetter said. “We also had, in (the 2024-25 school year, a 20% increase in health care, similar to this year’s increase.”

State sources would provide $16.873 million, 26.36% of revenue.

According to the district, the current five-year average real estate assessment growth is projected at 2.15%. Brandstetter said continued community growth, and the current assessment growth, has impacted the budget.