How will the High School project be funded?

Referendum on the ballot at the primary election May 20, 2014:
 

"Shall debt in the sum of eighty-five million dollars for the purpose of financing new construction and renovations for the State College Area High School be authorized to be incurred as debt approved by the electors?"

 

All school districts in Pennsylvania participate in a program known as PlanCon, administered by the Pennsylvania Department of Education (PDE). PlanCon oversees aspects of school design and reimburses a portion of construction costs using a formula that estimates a district’s wealth from the district’s total market value of real estate (MV) and total personal income (PI). Under normal circumstances, the “MVPI,” which ranks among the wealthiest 5% of districts in the state, would qualify the high school project for 5-10% state reimbursement, which is very low compared to most districts.

Due to a moratorium in funding at the state level, the project was expected to be fully locally funded. In late 2014, the state lifted the moratorium on PlanCon reimbursement. The district will apply for reimbursement, but is unable to predict with certainty at this time the amount of that potential reimbursement.

 

To repay the bonds the district will commit funds annually from its existing budget. The rest will require new revenue in the form of an increase in property taxes. The tax increase to repay the bond borrowing will end once the bonds are fully repaid.
 

Local Bond Referendum

 

Raising property taxes is a task that the board doesn’t take lightly. We are homeowners too, and we share the same tax responsibility. To fund bonds for the State High Project we asked your permission to raise taxes through a public referendum on May 20, 2014. 
 

Use our tax estimator to get a sense of what the high school project might cost your household.