School District approves $991K homestead exemption increase for local homeowners

The East Stroudsburg Area School District Finance Committee convened on May 12 to discuss significant financial updates and budgetary options for the upcoming year. The meeting highlighted a positive development regarding the Homestead Farmstead Exemption, which will see an increase of $991,000, benefiting homeowners in the district.

This increase marks the second consecutive year that homeowners will receive a tax break, with the amount rising from $679.81 to $785.72. This translates to an additional savings of $105.91 annually, or approximately $8.83 per month, providing much-needed financial relief to homeowners.

The committee also explored budgetary options for the upcoming year. One proposed option is to maintain a 0% tax increase, keeping the Monroe County millage rate steady at 31.05. However, the Pike County millage rate is set to increase to 126.05 due to necessary rebalancing, as the district spans multiple counties. This adjustment is required by the state when assessment values change, particularly affecting Pike County, which has not undergone recent reassessment.

Despite the proposed tax stability in Monroe County, homeowners in both counties will see a decrease in their tax bills due to the Homestead Farmstead Exemption. Monroe County homeowners will benefit from a reduction of $102.23, while those in Pike County will see a decrease of $105.91.

However, the district anticipates a revenue loss of approximately $1.6 million due to tax assessment appeals, particularly concerning commercial properties like the Exploria property, which is among the top ten tax contributors in the district. This loss poses challenges for the district's financial planning as it seeks to balance homeowner relief with maintaining necessary funding for educational services.

The meeting concluded with a focus on the implications of these financial changes and the need for careful consideration of budgetary strategies moving forward. The committee will continue to evaluate options to ensure the district can meet its financial obligations while supporting its homeowners.