Why Knoch school board is considering first tax increase in nearly a decade
JEFFERSON TWP — Knoch School District’s board is contemplating whether to raise its millage rate by 3.2996 mills, up to the level allowed by the state’s Act 1 index level for the 2026-27 school year.
If approved, this would be the first time since 2017 the district sees a tax increase.
A mill is equal to a $1 tax increase for every $1,000 of a property’s assessed value. For the median assessed home value in the district, the proposed increase is about $69 annually.
The district’s business manager, Jamie Van Lenten, said Wednesday, May 6, an increase of 3.2996 mills would provide the district with close to an additional $600,000 in revenue and would help balance the budget. The district’s administration is recommending the increase.
Van Lenten also said raising the millage rate to the proposed level for next year could help the district avoid raising taxes again for at least the following five academic years. Board members expressed interest in providing the extra revenue for the general fund, without pulling more from reserves, if it also meant avoiding more tax increases.
“I personally don’t want to see a tax raise, because I live in the district, and it costs us money. But I also know that, I’d rather take a swing at it and do what Jamie (Van Lenten) is proposing, and try not to raise them again for another five years,” board member Justin Kovach said.
Van Lenten said that without any millage adjustment, the fund balance would be drained by some time during the 2031 fiscal year. She said the proposed increase would significantly improve long-term financial stability.
Board members have been hesitant over millage increases in the past. Last year, the board considered a tax increase when the budget was presented, but ultimately decided to pull from the existing fund balance to cover the deficit instead.
“A quick search on the Bureau of Labor Statistics calculator shows inflation has gone up 35% since 2019. That’s the same thing as walking into a board meeting back in 2017 and saying we need to cut costs by 35% over the next nine years,” board member Jake Weidner said. “I think the administration needs to be commended. That’s a crazy number to think about.”
At the school board’s Wednesday work session, the district presented a 2026-27 general fund budget proposal of about $40.24 million, an expenditure increase of $203,000.
The budget, without any millage increase, would see a $596,000 deficit. The district projects total revenue to be about $39.65 million. The proposed millage increase, with projected tax collection rates, would roughly cover that gap.
Salaries and benefits continue to represent the largest portion of the district’s expenditures at roughly 67.4%.
The district is ending the current school year with slightly better numbers than initially anticipated. It ended up with a projected deficit of roughly $376,000, slightly better than previously anticipated, Van Lenten said. The fund balance is projected to end the current year at about $8.8 million.
The school board will hold a preliminary budget vote at its May 13 general meeting. The budget will then be posted on the district’s website for public inspection. The board will vote for final approval of the budget on June 3.
“The district has always been fiscally conservative since I’ve been on the board,” President Donna Eakin said. “If Mrs. Van Lenten can squeeze a penny, she’s going to squeeze it. She’s been amazing at continuing that tradition of being a conscientious spender of taxpayer money. And we’ll have an answer for you soon.”
