Harrisburg Navigates Overlapping Financial Challenges for City and School District

Harrisburg city officials and the Harrisburg School District are grappling with a shared history of financial instability, rooted in past overspending and a declining tax base. Discussions took place at the Intergovernmental Cooperation Authority’s (ICA) monthly meeting on Wednesday, February 25, 2026, where school district leaders presented an overview of their finances.

A History of Financial Distress

Both the city and the school district entered into various forms of state oversight approximately 15 years ago due to separate financial management issues. In 2010, Harrisburg was placed under Act 47, a program for financially distressed municipalities. The school district received a chief recovery officer in 2012 and was placed under receivership in 2019, exiting that status last year, though it remains under financial monitoring.

Shared Economic Pressures

ICA Board Chair Douglas Hill highlighted the interconnectedness of the city and school district’s financial situations, stating, “You have a comparable history to ours…have had some financial issues that you’ve wrestled with, with some success, as has the city.” A key factor is their reliance on the same tax base, which has been consistently challenged.

According to Superintendent Benjamin Henry and Chief Financial Officer Marcia Stokes, the district’s taxable assessed value has declined from just under $1.6 billion in 2011 to under $1.5 billion last year. Stokes emphasized that, unlike most municipalities, Harrisburg has seen a continued decline in assessed value over the past 15 years.

Untaxable Properties and State Aid Dependence

A significant portion of properties in Harrisburg are untaxable, largely due to the presence of state-owned buildings. This limits the district’s potential tax revenue. Stokes noted that if all properties were taxable, the district could generate an additional $49 million annually. Currently, 60% of the district’s revenue comes from state aid.

Addressing the District’s Reputation and Future Collaboration

ICA board member Kathy Speaker MacNett pointed to the reputation of Harrisburg schools as a barrier to attracting and retaining families. Superintendent Henry acknowledged this issue and stated the district is working to share its success stories, including the recent reinstatement of the musical theater program, the launch of an eSports league, and the addition of 13 crossing guards.

Stokes expressed interest in increased collaboration with the city to pursue grants and expand out-of-school activities for students. She stated the district aims to improve its image and offerings to develop into a more attractive option for residents, contributing to the revitalization of the city.

Looking Ahead

The ongoing dialogue between city and school district officials, facilitated by the ICA, signals a commitment to addressing these shared challenges. Continued collaboration and a focus on stabilizing revenue streams will be crucial for the long-term financial health of both entities and the city of Harrisburg.