Monroe County proposes 2% tax increase to offset $1.6M revenue loss

The East Stroudsburg Area School District's Finance Committee met on May 12 to discuss critical budget options for the upcoming fiscal year, revealing significant financial challenges and potential solutions. The committee outlined three budget scenarios, with the first option indicating a projected deficit of $23.5 million, primarily due to a loss of $1.6 million in revenue from assessment appeals.

In the first scenario, the district anticipates total revenue of $188 million against expenditures of $212 million, resulting in a concerning deficit. The general fund balance is projected to be around $20.7 million by the end of the fiscal year, although the anticipated fund balance could be as low as $6 to $7 million. This scenario is deemed the worst-case, as it does not account for pending assessment appeals that could further impact local real estate revenue.

The second option proposes a 2% tax increase, which would raise the Monroe County millage rate to 31.59 and the Pike County rate to 128.42. This increase is expected to generate approximately $190 million in revenue, helping to mitigate the projected deficit to $21.8 million. Homeowners would see a modest increase in their annual taxes—around $57.72 for Monroe County and $55.01 for Pike County—but due to the Homestead Farmstead program, many would actually experience a decrease in their overall tax burden.

The committee emphasized the importance of planning for revenue increases, noting that failing to do so could compound financial issues in the future. The discussions highlighted the need for careful budgeting and proactive measures to ensure the district's financial stability.

As the committee moves forward, the implications of these budget options will be crucial for the district's financial health and the impact on local taxpayers. The board will continue to evaluate these scenarios to find a sustainable path forward for the East Stroudsburg Area School District.