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WILKES-BARRE — Despite being well into the construction of a new, consolidated high school estimated at a cost of $121 million, Wilkes-Barre Area School Board plans to pass a resolution promising the 2020-21 budget will keep any tax increase within a state limit, Superintendent Brian Costello said.
The board will hold a special meeting Thursday at the district administration building for the sole purpose of passing the resolution, which will require the district to keep any tax increase at or below 3.7%.
Under requirements established by the law known as Act 1 of 2006, the state agreed to use money from legalized gambling to help lower local school property taxes, but also required districts to stick to an annual limit in tax increases. The limits are set by the state each year and can vary year to year and district to district.
Districts can exceed the limit either through a voter referendum or by applying for and receiving exceptions from the state Department of Education to cover rapidly escalating costs in special education and retirement fund contributions, or old construction debt.
A district gets more time to fashion a preliminary budget by agreeing to stay within the index. Putting a referendum on the ballot or seeking exceptions requires a budget be drawn up months earlier than the traditional state deadline to have a preliminary budget done near the end of May. Either way, a final budget must be approved by June 30.
Wilkes-Barre Area is in the midst of constructing a new high school in Plains Township that will consolidate grades 9-12 from the three existing high schools. Primary construction contracts topped $88 million and total costs are estimated to top $121 million. The district insists the consolidation will save enough money to prevent major tax hikes to pay off the long-term debt.
