SCHENECTADY — The family that funds a $1,000 athletic scholarship is revoking Schenectady High School’s participation in the program after school officials renewed the contract of its football coach after he pleaded guilty to a harassment violation.

Earlier this month, the Schenectady City School District rehired Carmen DePoalo to coach its varsity football team for a second year. DePoalo had pleaded guilty in June to second-degree harassment stemming from a Feb. 7 incident where he allegedly beat 58-year-old Thomas Donato inside Ferrari’s Ristorante. DePoalo had initially faced a charge of misdemeanor third-degree assault, but it was reduced to a violation level offense. DePoalo, 57, of 336 Broadway, paid restitution and was ordered to have no contact with Donato for one year.

For the 2008-09 year, he will receive a stipend of $5,000, which is a $200 increase from the current year. School officials said the increase in DePoalo’s pay is tied to the same step raises that teachers receive.

Jack Kozak, whose family runs the George Kozak Scholarship Foundation, said the family decided to pull the scholarship two days after news of DePoalo’s rehiring.

“We don’t believe that the school board is setting a good example for the students and it was also a slap in the face to the taxpayers to not suspend this guy but to turn around and give him a raise on top of it,” Kozak said.

The scholarship started in the fall of 2006 to honor George Kozak, who died on Oct. 25, 2006. He was a high school football player.

Football players attending Schenectady County schools and who are going to a four-year college and continuing to pursue athletics are eligible. It is paid out in yearly installments of $250 as long as the student maintains a 3.0 grade point average.

District spokeswoman Karen Corona said she could not comment on the matter.

“We’ve not received any notification of this,” she said.

The district hires its football coach on a year-to-year basis and DePoalo was not under contract. School officials have said that Superintendent Eric Ely rehired DePoalo after speaking with him as well as the Board of Education. Also, the state Education Department did not notify the district about a problem with DePoalo’s continued employment since he pleaded to a violation and the matter did not involve children.

DePoalo could not be reached for comment.