With a major budget deficit in mind, the Mars Area School Board on Tuesday voted down a motion to limit real estate tax increases for next year to 3%, a rate determined by the state Department of Education.

Historically, the district has approved keeping tax increases below the index.

Although several board members voiced different reasons for their vote against the measure, their consensus was that limiting tax increases now could limit financial avenues in the spring.

The district recently announced it's facing a $1.3 million to $1.4 million budget deficit due to the number of students who have enrolled in cyber charter schools this year.In Pennsylvania, families can choose to send children to charter schools paid for by the district in which they live.Historically, the state funded as much as 40% of tuition. Now, districts are responsible for covering all of that cost. Tuition is charged in proportion to the cost per student of regular district operations.Jill Swaney, district business manager, said this means tuition works out to be about $10,402 annually per regular education and $22,618 per special education student for Mars Area.While the district is looking to use its fund balance to help with the deficit this year, such a move isn't sustainable long-term.Discussion of the problem has included talks of staff furloughs and raising taxes, although nothing has been decided. Several board members said they hope to move into the next budget season with all options on the table.“These are unprecedented times that call for unusual solutions,” said Megan Lenz, board member. “Math is math. The math tells us that we don't have a responsible choice here besides raising taxes above the index.”

Approving the motion, Lenz said, wouldn't allow for the exploration of all potential solutions, adding she didn't believe furloughing staff was the right move.“This district is run in a slim fashion,” Lenz said. “There's no fat to trim here.”Board member Christine Valenta explained there are four options for raising taxes, as described by the state Association of School Business Officials.Valenta said the district as allowed by law can: Accept the state-imposed 3% index limitation in January; accept the limitation with the option to file for exceptions or seek a public referendum, to be determined in February; increase taxes beyond the index by filing for an index exception; or increase taxes beyond the index by filing for an exception, and seeking an additional increase via public referendum in the May primary.“I don't understand why (we're) even considering this recommendation,” Valenta said. “We should leave every option open until all the data is available.”Information regarding special exemptions Mars Area may qualify for — particularly in special education — won't be available until the end of the month.

Board member Kevin Hagen, who will vote against the motion, said because the public would be asked to bear the weight of any tax increases, he feels the discussion should go to referendum. Lenz said going to referendum would be a “poisoned pill.”“To offload that burden onto the public is irresponsible,” Lenz said. “We have a job to do.”Board member Anthony DePretis added voting down the resolution doesn't mean the district has to raise taxes beyond the index. Ultimately, DePretis said the district needs to focus on bringing students back from charter schools.“It is not a binary decision,” DePretis said.Board member Dayle Ferguson said considering the economic hardships the pandemic has imposed on many families, she'd vote in favor of the tax increase limit.“I am open to the ... potential need to raise taxes,” Ferguson said. “But I would not in any way vote to go above the index.”

Several district parents seized the opportunity to speak during the meeting's public comment section.Amber Rush said she enrolled her son in cyber charter school this semester. She suggested the district look at why students are leaving in the first place.Rush said she made the move for her child because the district doesn't have dyslexia programming that meets his needs.Kristen Lutzic spoke out against any discussion to furlough staff and eliminate programs.“I have had some real angels in this school district,” Lutzic said. “I see what teachers are doing.”“I don't know that it's the best time to go ask for a tax increase,” said James Insco, a community member. “(But) leave all options open.”

The motion to limit real estate tax increases to the 3% index failed, with Ferguson, Rita Dorsch and Gary Marburger voting in favor of it.The resolution still can be passed in January.The board noted in the meantime, the district should consider developing its own cyber academy to make it a competitive cyber entity. Current Mars Area Cyber Academy curriculum is issued through Allegheny Intermediate Unit 3.Swaney noted this year, real estate tax collection has come in “very close” to the budget amount. Earned income tax is difficult to judge at this time, according to Swaney.Valenta said this year the school district really depends on taxpayers.“There is a greater need than ever to ask for relief from the community,” Valenta said.