Berwick Area School District

At the May 12th Board of Education meeting, the School District’s 2025-2026, Preliminary Budget (which can be reviewed at this link) was adopted. While this preliminary spending plan contains a 3% tax increase, the actual tax increase may be lower once the spending plan is finalized at the June 16th meeting.

As the Berwick Area School District prepares its final budget for the upcoming fiscal year, District leaders are calling on all stakeholders- taxpayers, teachers, staff, and school board members- to better understand the financial pressures and opportunities shaping the future of public education in our community. For example, while local tax revenue has increased from $14,925,985 in 2014-2015 to $17,410,610 in 2023-2024 (a 16.65% increase during this 10-year period), the Consumer Price Index (CPI), a key measure of inflation from the U.S. Bureau of Labor Statistics, rose between 29% and 35% during the same period. Meanwhile, median household income in the Berwick area increased by 45% to 51%, according to the U.S. Census Bureau’s 2022 American Community Survey. These figures illustrate a critical imbalance between rising operational costs and local revenue capacity.

The chart below lists the millage rate adjustments (increases and decreases) in the Berwick Area School District since 2014. Because Berwick Area serves students in Columbia and Luzerne counties, the tax burden for each county must be rebalanced each budget season, in compliance with Pennsylvania's Constitution, which mandates that property taxes must be uniform, meaning the tax burden should be equitably shared among the School District’s taxpayers. Because of rebalancing, the 3% property tax increase factored into the Preliminary Budget, would result in a tax increase of 3.08% for Columbia County taxpayers and a 2.13% increase for Luzerne County taxpayers. If this holds for the final budget, the approximate average tax increase will be $39.57 per taxpayer in Columbia County and $34.31 in Luzerne County. If the tax increase was 0%, Columbia County would still see a small increase in taxes and Luzerne County a small decrease. This is due to the decreased assessed property value in Columbia County and an increase in Luzerne County’s assessed value.

“While we successfully balanced our budget for the past three years, this followed a prolonged period of annual deficits from 2015 to 2022,” said Board Vice-President, Keith Hess. “That turnaround reflects both difficult decisions and a renewed commitment to long-term fiscal responsibility.” The District continues to face steep increases in mandated and uncontrollable costs. During this time PSERS (Public School Employees’ Retirement System) contributions have surged more than 200%, healthcare expenses are up by approximately 30%, special education costs have grown over 20%, and cyber education costs have increased by more than 50%. Over the past two years, Columbia Montour AVTS program expenses have risen over $200,000 with Berwick Area’s contribution set to rise an additional $145,033.91 next school year.

Despite these rising expenses, Berwick Area School District remains in a strong financial position. As of this year, the District maintains a general fund balance of approximately $12 million and a capital reserve fund balance of approximately $7.6 million, providing flexibility for future investments. The proposed 2025–2026 budget is once again balanced, a testament to the District’s prudent financial management and forward-thinking strategy.

It’s also important to note that the District has limited control over its revenue streams. Local property taxes- currently account for about 40% of the total budget-are the primary source of locally controlled funding. In addition, competitive grants contribute less than 5% and are often tied to specific programs or one-time projects. The remaining revenue comes from state and federal sources that are beyond local decision-making authority.

Berwick continues to operate with notable efficiency despite receiving lower than average revenue per student compared to schools statewide. According to Public School Review the District’s revenue per student average of $19,003 is less than the state median of $23,696. The research group notes the District’s revenue per student has stayed relatively flat over four school years. Overall, Berwick Area ranks 469 out of 499 in total revenue among all Pennsylvania school districts—a reflection of a 12-year freeze on local tax increases that limited the District’s ability to keep pace with inflation.

Looking ahead, the District remains focused on balanced budgeting, essential capital improvements, and the pursuit of new revenue opportunities. Anticipated retirements and the development of new local revenue sources, including potential industrial tax contributions, are expected to ease pressure and provide new avenues for investment in educational quality.

“Our priority is to drive the long-term stability of the District to ensure maximum opportunities for student success,” said Board President, Jared Yost. “We encourage all members of the community to attend our upcoming board meetings, ask questions, and take part in shaping a shared vision for Berwick’s future.”

Sources:

U.S. Census Bureau, 2022 American Community Survey

U.S. Bureau of Labor Statistics, Consumer Price Index Data

Forecast 5 Data Analysis provided by School Business Consultants, LLC