Hub - Today's Challenges

Lower Property Values
The total value of property in the district went down by about $9.2 million. Because school taxes are based on property values, this means the district collects roughly $337,580 less in tax money.

Limits on Tax Increases
State law (Act 1) limits how much the district can raise taxes each year. The district stayed within that limit, so it can’t simply raise taxes to cover rising costs.

Loss of Payment from Reading Hospital
Reading Hospital used to make a yearly payment to the district in place of paying property taxes. That payment, worth $440,700, is no longer coming in.

Rising Health Insurance Costs
The cost of health insurance for district employees has gone up every year for the past four years, by 8.75%, 12.00%, 9.99%, and 14.72%. The district made a one-time $41,000 contribution to its health fund, but that doesn’t solve the ongoing increases.

Cyber School Costs
More students have enrolled in cyber charter schools since COVID, and the district pays tuition for each one. This is happening in school districts across the state, not just ours.

Special Education Placements Outside the District
Some students need specialized programs that the district can’t provide on its own, so it pays for them to attend elsewhere. These costs have gone up, which is also true for many other districts.

Transportation
Busing costs are higher because more buses were needed after the school start and end times changed. A new transportation contract and higher fuel prices have added to the cost as well.