On May 14, Mars Area School Board voted 7-2 in favor of the PROPOSED 2024-2025 Mars Area School District General Fund Budget of $62,725,076 with a tax increase of 3.474 mills.

Board members John Kennedy and Aaron Rose cast the dissenting votes.

To view the PROPOSED 2024-2025 Mars Area School District General Fund Budget, click on the the following:

 

The following presentation offers an overview of the PROPOSED 2024-2025 Mars Area School District General Fund Budget: 

 

Mars Area School Board voted 7-2 in favor of Mars Area School District’s tentative 2024-2025 General Fund Budget of $62,725,076 with a tax increase of 3.474 mills.

Board members John Kennedy and Aaron Rose cast the dissenting votes.

The budget proposes an increase in the current tax rate from 105.526 to 109.0 mills. For a home with a median assessment value of $28,665, the increase would be equal to an additional $99.58 per year in taxes.

Real estate taxes make up 53 percent ($32,931,755) of the District’s proposed revenue budget, says Debbie Brandstetter, Business Manager. The tax increase would bring in an estimated $1,066,358 of additional revenue, of which $593,372 would be transferred to the Capital Projects Fund to prepare for a planned extensive expansion project at Mars Area Elementary School and $472,986 to pay for an increase in health care premiums.

The proposed budget is approximately 6.5 percent ($3.8 million) higher than the District’s 2023-2024 budget of $58,888,444 and expects a deficit of $954,196. This deficit would require the use of fund balance in order to balance the budget.

Five (5) categories comprise 93.6 percent ($58,746,384) of budget expenditures — Salaries ($26.4 million), Employee Benefits ($16.9 million), Other Purchased Services ($6.4 million), Debt Service ($6.1 million), and Supplies ($2.8 million).

The proposed budget includes the continuation of existing educational programs; the retention of all teaching and support staff, including all unfilled support position; and the replacement of all retiring and/or resigning teachers and support staff. The tentative budget also accounts for an increase in the starting pay rate for support staff that was implemented during the 2023-2024 School Year as well as for an Access Billing Coordinator & Special Services Administrator position and third Mars Area Elementary School secretary position, that were added during the current school year.

In addition, the budget includes 12 new positions — high school English/ESL teacher; three (3) Mars Area Centennial School classroom teachers; half-time kindergarten teacher, learning support teacher, special area teacher (K-6), an elementary school counselor, school police officer, an assistant elementary school principal, and two (2) IT technicians. Increasing enrollment remains the driver behind the need for additional teaching positions.

The tentative revenue budget of $61,770,880 includes an increase of $2,968,437 over the 2023-2024 budget and covers all but $954,000 of the budgeted expenditures, says Brandstetter. The budget draft expects around $45.1 million in local revenue, approximately $16.5 million in state revenue, and $150,000 from federal sources. The revenue increase is due primarily to a $2.4 million increase in revenue from local sources. The budget includes an increase in real estate tax revenue of $1,682,715 with $615,817 attributed to the growth in property assessment values and $1,066,358 resulting from the 3.474 proposed millage increase to 109.0 mills. In addition, earned income tax revenue is expected to increase by 4 percent,  generating an estimated additional revenue of $729,900.

State revenues are budgeted to increase by $727,426 with $386,330 of the increase coming from additional basic education subsidy, a $215,024 increase in reimbursement of retirement contributions, and a $118,997 increase in the amount received for property tax reduction.

Overall, revenue from local, state and federal sources would be $61,770,880, which would covers all but $954,000 of the budget-ed expenditures, says Brandstetter. The budget draft expects around $45.1 million in local revenue, approximately $16.5 million in state revenues, and $150,000 from federal sources.

The proposed 2024-2025 General Fund Budget is available for public review online at www.marsk12.org. The Board is scheduled to adopt the final budget at its Regular Meeting at 7 p.m. on Tuesday, June 18.

Questions/Comments

Questions or comments regarding the budget and/or District finances may be submitted to Mars Area School Board via e-mail at [email protected]; the District's online form at https://www.marsk12.org/apps/form/form.MARSSD.qox76fY.iB; or at any public Board meeting.