Lehighton holds tax line
Property taxes will not be going up in Lehighton Area School District despite a projected $2.1 million deficit in its 2023-24 budget.
Directors voted 6-2 Monday night to hold the line on the real estate millage in the hopes that the district strengthens its financial position over the next several years.
The budget calls for expenses of $48.53 million and $46.35 million in revenue.
Voting for a zero tax increase budget were Joy Beers, Jeremy Glaush, Barbara Bowes, Kerry Sittler, Heather Neff and Richard Beltz. Board members Brian Shaner and Nathan Foeller, who favored an option calling for a 1.5-mill tax increase, were opposed
“Our five-year projection is based on conserve estimates,” Board President Joy Beers said. “I am hoping that things will unfold more favorably than they have. Our special education program has some inefficiencies, but Dr. (Christina) Fish is a special education expert and some of those things will hopefully iron themselves out and we’ll bring some students back to the district for those services. I’m relying on optimism.”
If Lehighton had raised taxes by 1.5-mills, its deficit would have dropped to $1.6 million. Shaner said despite Monday’s decision the question remains when, not if, the district will ultimately have to raise taxes.
“Our expenses are way outpacing the revenue and its just not sustainable,” he said. “We have to look to the future and not kick the can down the road any further. I appreciate that inflation has hurt certain members of the community. Inflation isn’t going away. The longer we kick the can down the road, we are going to have to increase taxes and it’s going to hurt people more because it won’t be a gradual increase.”
Bowes said raising taxes while the cost of every day goods and services continues to skyrocket is not a decision she was willing to make.
“Given hardships of this year, I barely make a living wage and I know what it has cost me,” she said. “I can’t imagine what it’s like if you’re on social security or a fixed income. I just can’t see doing it this year.”
Should Lehighton use $2.1 million of its fund balance as projected, it would be left with around $6 million. Some taxpayers, like Mike Lusch for example, worry that dipping into the fund balance too often will leave it dry sooner than later.
“It is very concerning to hear that we are going to run our district based on hope,” Lusch said. “When you make other decisions, you don’t leave things to chance. These are concrete numbers. We are operating at a deficit. I would rather know I have to pay a small tax increase each year compared to a large one. I know it’s a difficult job to tell someone we have to raise taxes, but sometimes we have to do things we don’t like to do.”
As part of the budget process, directors on Monday also passed the homestead/farmstead resolution. Property owners of the 4,366 qualifying homesteads and farmsteads in the district will each see a $344.95 reduction on their tax bill due from state gaming money.
Board members also assigned fund balances totaling nearly $5 million for future uses including technology expenditures, Public School Employees’ Retirement System payments, medical insurance, capital expenditures and curriculum.
“It’s a good budgeting practice and gives the board more control over where those funds go,” Superintendent Dr. Christina Fish said.