EMMAUS, Pa. — East Penn School board voted Monday to advance the district’s proposed budget for the 2025-26 school year with a 4% property tax hike.
“This is a procedural step,” school district Business Administrator Robert Saul said.
“It's required so that you don't just show up on the last possible day to adopt a budget and, poof, here it is… it requires something to be put out publicly.”
The budget East Penn officials shared Monday includes new cuts to spending, including $100,000 previously earmarked for new marching band uniforms, to several board members’ dismay.
“That’s a purposeful, planned deficit. It's not, ‘Oh, well, we couldn't balance our budget, and so we have this deficit.’ We know it's there.”East Penn Schools Business Administrator Robert Saul
After the cuts, the budget still shows a $1.1 million deficit, created as the district spends money set aside for new technology infrastructure.
“That’s a purposeful, planned deficit,” Saul said. “It's not, ‘Oh, well, we couldn't balance our budget, and so we have this deficit.’ We know it's there.”
East Penn’s proposed budget also reflects a 0.84-of-a-mill property tax hike — the largest officials can impose without first holding a referendum under Pennsylvania’s Act One limits.
That would raise the property tax rate to 21.84 mills, meaning the owner of a home valued at $200,000 for tax purposes would pay $4,368 a year.
'The long term effect'
If recent trends continue, residents will see more tax increases this decade.
The district’s long range fiscal plan includes raising property taxes as much as Act One allows each of the next five school years.
By the 2029-30 school year, district officials expect its levy will rise to 24.82 mills. Even with higher taxes, projections show expenses growing faster than income and eating into East Penn’s fund balance.
“This is a projection based on assumptions, right? What we've tried to do is use this model as an indicator of the long-term effect of the decisions we're making this year.”East Penn Schools Business Administrator Robert Saul
According to the fiscal plan, the district would end the 2029-30 school year with a negative $2.8 million fund balance.
“This is a projection based on assumptions, right?” Saul said. “What we've tried to do is use this model as an indicator of the long-term effect of the decisions we're making this year.”
In the coming years, many factors could change the district’s financial outlook. Whatever comes, Saul said, East Penn is unlikely to ever ask voters to raise property taxes above the limit imposed by Act One.
If the forecast proves accurate, then, the district will have to cut back spending instead.
After Monday’s vote, district officials will put the proposed budget on display for residents to review. East Penn’s school board will vote on approving a final budget in June.
