Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Budget topic
No spam. Unsubscribe anytime.
East Stroudsburg board adopts proposed 2025-26 budget with no tax increase
Summary
The school board voted to post and advertise a proposed final 2025-26 budget that keeps tax rates flat (option 1). The budget reflects rising healthcare and utilities costs, a $1.6 million revenue loss from an assessment appeal, and an increase in the homestead/farmstead exemption allocated by the state.
The East Stroudsburg Area School District Board of Education on May 19 voted to adopt and advertise a proposed final 2025-26 budget that keeps tax rates unchanged (the board selected the “0% increase” option).
The move begins the required 20-day public notice period before the board will consider a final adoption vote in June under the Pennsylvania School Code. Board members voted in favor of the proposed final budget during a roll-call process and the motion passed by the board majority.
Assistant/finance staff presented three options earlier in the meeting: a 0% tax increase (option 1), a 2% increase (option 2) and a 3.5% increase (option 3). The presentation detailed drivers behind the district’s budget gap: projected health-care cost increases (presented at about 13%), higher electricity/transmission charges, increased contracted special education services, and a roughly $1.6 million reduction in real-estate revenue resulting from a commercial assessment appeal the district settled. The presenter said the district’s fund balance and prior reserves allowed the board to consider maintaining current rates while still budgeting for those pressures.
Budget figures presented to the board included projected revenues and expenditures under each option and estimated fund-balance impacts. Under option 1 the presenter showed a projected deficit in the multi‑million-dollar range and an anticipated general fund balance that would decline but remain above the district’s minimum levels. The package also assumes a $5.5 million state “tax equity” / homestead‑farmstead distribution in the current cycle; the presenter warned that the future stacking of that state aid is uncertain.
Board members discussed tradeoffs: some said keeping taxes flat was prudent given uncertainty about state funding increases and upcoming retirements that could change personnel costs; others suggested the board could revisit the rate before final adoption if new state information or other revenues emerged. The board adopted the proposed final budget with the motion to post and advertise the proposed final budget for public review.
The board action starts the statutorily required notice period; the board will vote on the final budget and any tax levies by the June deadline.
