S
tate College's proposed 2025 budget includes increases to real estate tax, sewer fees, and public parking rates for the first time in over a decade. The $77 million budget aims to achieve a balanced budget by 2027, without relying on one-time funds for recurring expenses.

    The proposed 3-mil property tax increase would bring State College's millage rate to 22.880, the highest among Centre County's 35 municipalities. This would result in an annual real estate tax increase of $159.29 for a residential property with a $300,000 market value and no homestead exclusion.

    The borough's proposed budget is structurally unbalanced, with projected general fund expenditures exceeding recurring revenues by $2.4 million. To cover the gap, $2.4 million from reserves will be used. The proposed budget projects a year-end general fund balance of $13.7 million.

    State College did not have a tax increase for three of the past four years due to COVID-19 relief money and large unrestricted fund balances. However, long-term projections require a structurally balanced budget in the next several years.

    The "major cost driver" in the proposed budget is employee benefits, with a 19.4% increase in group health insurance. Significant capital improvement projects include $3.2 million for phase two of the Calder Way project and $2.4 million for the High Point Action Sports Park.

    Parking fees are set to increase for the first time since 2014, with proposed changes including a decrease in parking meter rates from $0.25 per 12 minutes to $0.25 per 10 minutes. Sewer fees will also increase by $1.89 per quarter, up from $12.67.

    The borough council has scheduled three budget work sessions: December 2 for a public hearing and fee schedule discussion, December 9 for a wrap-up discussion, and December 16 for budget adoption.