The Pleasant Valley School Board passed a 2.75% increase in local taxes during a special meeting Tuesday night. This is an increase of 0.6302 mill, which brings the total tax levy to 23.5481 mills.

Translated into dollars, the increase will be $88 per year for a house assessed at $139,473, which is the average assessment in the school district, said acting Business Manager Joseph Surridge.

The school board was first made aware of a possible tax increase in December by the former Business Manager Susan Famularo, before her retirement on Dec. 31. Surridge confirmed it and told the school board that the tax increase might need to be as much as 4.1%, due to $8 million shortfall in the budget.

At their meeting on June 24, no one on the school board wanted to consider a tax increase that high. Each stated what they could consider, which ranged between 2% and 3%.

On Tuesday night, Surridge prepared two separate budgets for the board to consider. One had a 2.75% increase and the other a 3% increase.

“I personally have been doing this for over 20 years and they just don’t get any easier,” he said about passing a tax increase.

The vote came out 6-2, with Delbert Zacharias and Dan Wunder voting no.

In an interview, Surridge said school boards are required by law to pass a budget.

“I’ve never in my career seen that happen,” he said about a school board coming to a stalemate on a decision.

Surridge said he has seen a school board in a different district vote down a budget, but then take another vote.

“Technically, you need to pass a budget before July 1,” he said.

The 2.75% increase is expected to generate $53.3 million for Pleasant Valley School District. It is about $1.6 million more than the previous year.

Despite the increase, the school district is still facing a deficit, although not as much as they feared.

According to the budget, the district will bring in about $104.3 million in revenue between federal and state funds, and local taxes. The total expenditures are expected to be $105.2 million, which leaves a deficit of $901,211.

The district does have $5 million in five fund balance accounts, which can be tapped to make up the shortfall.

Surridge said the deficit was reduced, in part, because several students that had gone to the cyber charter schools have re-enrolled in classes in the school district. This reduces the amount the district thought they would need to cover payments to the charter schools.

“The administration is feeling more confident with more of those students coming back,” he said.

In addition to the budget, the directors passed the 2021 Homestead and Farmstead Exclusion Resolution. The program was created to help people, such as retired people on a fixed income, to reduce their property taxes.

Information about applying for the exclusion can be found on the state Department of Community and Economic Development website at https://dced.pa.gov/local-government/property-tax-relief-homestead-exclusion/. The deadline to file is March 1, and the school district has to notify the homeowners by Dec. 31 if they qualify.