The Knoch School District could see a property tax increase as part of it's about $40 million budget for the 2025-26 school year, which currently includes a deficit of more than $650,000.

The preliminary budget, which was presented at the school board’s Wednesday, May 7, meeting by business manager Jamie Van Lenten, currently projects no millage increase for the taxpayers, but offers the board options to increase tax by up to 3.771 mills.

Under the current rate of 94.275 mills, the median homeowner pays about $1,968.46 annually in school taxes. With the maximum proposed increase, that bill would rise to $2,047.20, an annual difference of $78.74. For most homeowners, that would mean paying about $6.56 more per month.

Taxpayers currently eligible under the Homestead or Farmstead Exclusion, would see a slightly lower increase. Their assessed value is adjusted to around $20,371, which means they could seen an increase from $1,920.49 to $1,997.31 under the 3.771-mill option. That comes out to a yearly difference of $70.64, or $5.88 more per month.

As it stands now, the preliminary budget totals at about $40 million, which is an increase of $267,886 from the previous year.

During the meeting, school board President Donna Eakin asked Van Lenten what significant difference a raise in millage would have on the overall budget.

“It would be the difference of a budget deficit and breaking even,” Van Lenten said.

Van Lenten informed the board that the preliminary budget in its current state comes with a $653,000 deficit.

In the event that a full 3.771-mill increase is approved, Knoch still would remain on the lower end of the school tax spectrum in Butler County, with a total millage of 98.046. Other local districts have significantly higher millage rates: Freeport Area is currently at 170.30 mills, while Seneca Valley is at 138.00 mills. Both Butler Area and Mars Area school districts exceed 100 mills, with Karns City and Moniteau remaining closer to Knoch’s current rate.

If the board voted on an increase, this would be the first tax hike for Knoch School District since 2017. In 2024, the district considered raising the millage by 2 mills, but opted against it before adopting the final budget.

The preliminary budget will be voted on at the school board’s regular meeting on Wednesday, May 14, after which it will be displayed to the public for a 30-day period. During this time, community members will have the opportunity to review the budget and provide commentary. The final budget will be presented to the board on June 11, followed by a vote on June 18.

If the budget is approved with a deficit, the difference would come from the district’s existing fund balance. An increase in taxes would assure that the district would have those tax funds coming in as revenue for next year.