Panther Valley is set to receive more than $2.4 million in new COVID-19 relief funding, which will help the district reduce a budget deficit next year.

The school district will still consider raising taxes since the relief funds are only a one-time solution.

“It will help us for next year’s budget, but looking at the years after that, we need to find a structural solution for the budget,” said Jesse Walck, the district’s business manager.

The school board did not take any action on advertising a preliminary budget during its regular meeting Wednesday night. It is now on the agenda for a special meeting at 6 p.m. Monday.

If the district plans to raise taxes more than 4.6 percent in the coming school year, it needs to be included in the preliminary budget. In order to exceed 4.6 percent the district must get approval from the Pennsylvania Department of Education.

The district learned the amount of its grant award this week. The $2.4 million is on top of the $800,000 it received in COVID relief funds last year.

Walck said that the district will be allowed to use the funds to cover its ongoing expenses.

That will help close a large budget deficit.

During a budget workshop last week the deficit was projected to be well over $1 million.

A large portion of the increased expenses are cyber charter school tuition, which has exceeded the district’s 2020-21 budget figures by $1.5 million.

Walck warned board members that the COVID-19 relief funds will only cover the deficit for one year.

He said a tax increase will still be needed in the years to come to deal with the structural deficit. In years prior, the school board had used its reserve funds to close the budget deficit. Years of borrowing have emptied the reserves.

Walck suggested that residents who are concerned about the tax increase contact their state representative and state senator and tell them that schools need funding.

“We don’t have a lot of extras here,” Walck said.